The creators of one of the most widely used and influential credit scores, also known as the “FICO score” just released that your credit score could be getting a boost in the near future. The Fair Isaac Company has stated that they will no longer use unpaid medical bills or late payments on bills that have been paid off as factors when calculating your FICO credit score. Check out this article posted on Time.com – Here's Why Your Credit Score Is About To Improve
Keeping track of your credit report and score on a consistent basis can prove to be challenging and in many instances requires a monthly fee. You can receive a free credit report from all three credit reporting agencies – Experian, Equifax, and TansUnion – once every 12 months. You can do this by going to www.annualcreditreport.com. But is monitoring your credit report only one time a year really enough?
There are a handful of places you can go for a free credit score. Some of these places are Credit Sesame, Credit.com and CreditKarma. So what is the difference between these free credit score companies? The main difference in the scores given by these companies is determined by which credit reporting agency data they are based on. Credit.com gives you a letter grade (A-F) based on Experian data, Credit Sesame gives you a number score much like the FICO credit score but is based on the Experian National Risk score, also based on data collected by Experian. CreditKarma gives you two different scores – a VantageScore credit score and a TransRisk Credit score. These are based on TransUnion data. So credit scores given by these free credit score companies can vary, but it is a great place to start when you want to get a feel for where you stand on your credit score.
For the last 3 years I have used CreditKarma relentlessly. It has been a vital tool that I have used to check and manage my credit report. In the last three years I have found 3 errors on my credit report and have managed to resolve each issue. Each of the three credit report errors were discovered using CreditKarma. The most useful feature is their mobile notifications, which alert you via an email or mobile notification if there is a change or an addition to your credit report. It is an easy to use mobile app that makes it effortless for you to check your credit report or score on the go.
You can find more info about CreditKarma on their website www.creditkarma.com.
Will this new change impact your credit score?