Table of Contents
- Major credit card issuers integrated free credit scores after the Consumer Financial Protection Bureau called for greater accessibility to scores.
- Knowing your score is crucial to monitoring your financial health and staying on top of potential fraud.
- Each credit card issuer receives data from a different credit bureau, meaning your scores may differ between issuers.
- You can obtain a free copy of your credit report each year from AnnualCreditReport.com.
Prior to the 1950s, whether you qualified for a line of credit depended on the judgment of the lender working that day. This raised concerns regarding fairness on credit applications, leading to the invention of credit scores, which grew in popularity throughout the ‘70s.
Now, due to the FICO Score Open Access program, consumers have free access to their FICO credit score. The Consumer Financial Protection Bureau supported this movement, calling on credit card companies to offer free credit scores across the board to customers. While some credit card companies haven’t hopped on this train yet, most have.
Major Credit Card Issuers Offering Free Scores
Most of the major credit card issuers offer free credit scores.
| Credit Card Issuer | Credit Score Type | Who It’s Available To |
|---|---|---|
| American Express | TransUnion VantageScore 3.0 | Anyone with a free account |
| Bank of America | TransUnion FICO Score | BOA cardholders |
| Barclaycard | TransUnion FICO Score | Barclaycard customers |
| Capital One | TransUnion VantageScore 3.0 | Anyone with a free account |
| Chase | TransUnion VantageScore 3.0 | Anyone with a free account |
| Citi | Equifax FICO Score | Citi cardholders |
| Discover | TransUnion FICO Score | Anyone with a free account |
| US Bank | TransUnion VantageScore 3.0 | US Bank customers |
| Wells Fargo | Experian FICO Score | Wells Fargo customers |
Each credit card issuer pulls data from a different credit bureau and scoring model, so scores may vary. For example, if American Express says you have an 801 credit score, don’t be surprised if Wells Fargo says otherwise — they use two entirely different sources of data and scoring models.
Access to free credit scores from major credit card issuers is a significant step towards financial empowerment. It allows consumers to monitor their credit health regularly without additional costs. However, it’s important to understand the differences in scoring models and data sources used by different issuers. These variations can result in different scores from each issuer, reflecting slightly different aspects of your credit history.
Benefits Of Knowing Your Score
Lenders utilize credit scores to gauge your overall financial responsibility. If your score indicates irresponsible financial behaviors, lenders may not approve you.
Your score can also serve as an indicator of financial health. If your score is increasing over time, you’re likely improving your financial situation. If it’s declining, however, it might indicate that it’s time to reevaluate your financial situation.
Credit monitoring is also crucial for spotting credit mistakes, identity theft, and credit reporting errors. If your score drops and you’re unsure why, it may indicate an error on your report. Failure to keep up with your score, however, could leave you unaware of time-sensitive issues like these.
Variations In Credit Scores
You may find that your FICO score with one credit card issuer differs from your FICO score with another. This is because each issuer collects data from a different credit bureau.
There are three primary credit bureaus — Equifax, Experian, and TransUnion. Each credit card issuer selects the bureau they believe provides the best data and uses their preferred scoring model. Scoring models like FICO and VantageScore use slightly different criteria to calculate your score.
Think of credit scores like baking two chocolate cakes — high-quality ingredients and a professional recipe will taste different from cheaper ingredients and winging the recipe. They’re both chocolate cakes in the end, and they’re both good, but they’re slightly different.
Regularly checking your credit score is more than just a number-watching exercise. It’s a component of maintaining your financial health. An improving score can indicate good financial habits, while a declining score may warrant a closer look at your financial activities. Additionally, monitoring your credit can help detect errors or fraudulent activities early, allowing for timely corrective actions.
Checking Your Credit Score
If you use one of the major credit card issuers listed above, checking your credit score is simple and accessible. Simply log into your account and navigate to the credit section.
If you’d prefer to check your credit score outside what your credit card issuer provides, you can do so for free via places like Credit Karma. You’re also entitled to, by law, one free copy of your full credit report each year at AnnualCreditReport.com.
While there’s no need to check your credit score every day, checking it is often wise. This allows you to stay on top of potential inaccurate information or any unexpected shifts in your score. And contrary to popular belief, checking your credit score does not hurt it.
When you check your credit score, you perform a soft inquiry. A soft inquiry does not hurt your score. If you submit a formal application with a lender, however, they’ll perform a hard inquiry. Hard inquiries do hurt your score temporarily.
While major credit card issuers provide a convenient way to check your credit score, it’s also wise to periodically review your full credit report. This can be done annually for free via AnnualCreditReport.com. Understanding the distinction between soft and hard inquiries is important, as only hard inquiries from formal applications can affect your score. Regular self-checks are soft inquiries and won’t impact your credit score but provide valuable insights into your credit standing.
Frequently Asked Questions (FAQs)
Is AnnualCreditReport.com A Reputable Site?
AnnualCreditReport.com is the official site to receive free annual credit reports. You can verify this by the fact that the website is recommended by the Consumer Financial Protection Bureau.
What Is Considered A Good Fico Score?
FICO scores range from 300 to 850 and are ranked as follows:
Very poor: 300 to 579
Fair: 580 to 669
Good: 670 to 739
Very good: 740 to 799
Excellent: 800 to 850
What Is The Most Widely Accepted Credit Score?
FICO scores are the most widely-used credit scores. In fact, around 90% of top lenders use FICO scores.
What Is The Most Accurate Free Credit Score?
The score you receive from a credit bureau will be most accurate, as this typically contains the most up-to-date information.
Find out more
- What is Credit Repair? – An in-depth look at the credit repair process.
- What is the Lowest Credit Score? – Learn about the implications of having a low credit score.
- Understanding Credit Repair Cost – Get informed about the expenses involved in credit repair.
- Removing Old Names and Addresses from Credit Report – Steps to update and correct your credit report.
- Soft vs Hard Credit Checks: What You Need to Know – Understanding the difference and impact of soft and hard credit inquiries.
- Tips for Comparing Credit Repair Companies – Advice on choosing the best credit repair company for your needs.
- What Affects Credit Score? – Delve into what really affects your credit score.
- What is a Good Credit Score? – A guide to understanding and achieving a strong credit score.
