Finally: Anyone Can Get Their Official FICO Credit Score For Free

today, Discover announced the establish of CreditScoreCard.com, a web site where anyone can obtain their official FICO credit mark for free. Historically, customers looking for exempt credit scores would turn to :

  • Websites like CreditKarma or CreditSesame, which offer free credit scores. However, these websites provide the VantageScore instead of the official FICO score.
  • Credit card companies, which increasingly offered free FICO scores to their customers online or via their statements. (You can find a list of credit card issuers offering free FICO scores at MagnifyMoney, where I work).
  • MyFico, a paid service offered by FICO. With myFICO, you could pay to obtain multiple versions of your official FICO credit score generated from all three credit bureaus.

If you wanted your official FICO score, you would either need a credit card from one of the issuers that provides it for free, or you would need to pay FICO directly. With the launch of Discover ‘s newly service, anyone can immediately get their official FICO credit seduce for loose.

The procedure to create an history entirely takes a few minutes. You will be given your score, information on what is helping and hurting your seduce, and access to other educational resources .
Why Does “Official FICO” Matter?

The Fair Isaac Corporation created the first generic citation score in the 1980s. Making loans used to be a judgmental march, with each loan officer believing that he or she knew good. Although much is written today about the use of big data and advance analytics, FICO was well ahead of its time. It created credit scoring algorithms using home credit chest of drawers data. And the results were obvious : data-driven models using advance statistical techniques provided better results than judgmental cover. Fast forward to today, and you can get approved for a recognition wag in barely a few minutes and with no human interposition. Although the market lenders have been talking about advance lend algorithm as “ revolutionary, ” our nation ‘s credit card issuers have been doing it for decades .
FICO was the beginning, but that does n’t explain why it has remained so dominant. I believe FICO has maintained its laterality for two reasons :

  1. The government mortgage agencies (

    Fannie Mae
    ,

    Freddie Mac
    ) require the use of FICO credit scores. So, if you want to get a mortgage, you will likely need to know your FICO score. As a result, people remain very focused on their FICO scores.

  2. Banks have been using FICO credit scores, largely in combination with their own proprietary models, for decades. So long as FICO continues to validate, banks are reluctant to make un-necessary changes. Given the strong similarities between competitor credit scores (like VantageScore) and FICO, switching can be a difficult sell to a risk department of a bank.

As a result of the mortgage market and bank inertia, FICO credit scores continue to be used in 90 % of all credit decisions made by lenders in the US. If you want to know how a potential lender will view you, knowing your official FICO score is a very useful tool.

Is The FICO Score From Discover The Only Score I Need?
There are many different versions and models of FICO credit scores. FICO builds different models specifically for mortgages, car loans and credit cards. Within each category, FICO has different versions. For case, FICO has recently introduced FICO 9, which has made some significant changes to the ways aesculapian bills and collection items are treated. however, many banks and lenders might still be using older versions of FICO. At the myFICO web site, you can access up to 28 different versions of FICO .
But even if you know which version of FICO is being used, that does n’t mean you know whether or not you will be approved. many lenders use the FICO score as a variable in their own customs scoring model. And on top of the banks scoring model, there will besides be accredit policies that could prevent you from obtaining credit rating .
however, getting an official version of your FICO is still important. In my conversations with FICO in the by, they have constantly emphasized that your range is more important than the demand number. For model, if you are considered Excellent because your score is above 750, it is highly likely that your mark would be excellent on early versions of FICO. And this raw service from Discover is a bang-up way for any consumer to see one of their official FICO credit scores .
Why Is Discover Doing This? 
CreditKarma showed the world what is possible when you give away spare credit scores. Millions of people have signed up for CreditKarma to obtain and understand how credit scoring works. They were genuine innovators, breaking open the black box and helping people understand concepts like use.

With this move, Discover is making a few bets. First, people truly want their official FICO credit score, and not good the VantageScore. Second, once people sign up for their exempt credit mark, Discover will have the opportunity to showcase credit cards. Whereas CreditKarma uses its database of credit information to enable target commercialize from banks and other lenders, Discover will hope to build up a database of consumers that can ultimately convert to a Discover recognition circuit board intersection .
According to Discover, this is not an try to compete with CreditKarma. rather, “ Credit Scorecard is a direction for Discover to continue its leadership in promoting credit health and awareness. ” In an increasingly competitive credit menu industry, Discover ‘s strategy has been to differentiate on consumer department of education and experience. Discover, which spends heavily on marketing, plans to spread the word. We can expect to see CreditScoreCard television receiver ad this summer .

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