In this article, we'll explore the FICO(r) Score 9 and explain what it means. We'll also discuss MyFICO, other options for a FICO(r) Score, and how rent payments can affect your credit score. Let's start by examining the first three factors that can affect your FICO (r) Score. You will likely want to find out what each of these means. So, let's get on with the reading.
FICO(r) Score 9
FICO(r), scores have been around over 25 year, but they are most popular and widely known. Lenders began using FICO (r) Scores for the first time in 1989. There have been many developments since then. Consumer demands, data reporting practices, as well as credit-granting requirements. Here are the facts about this credit scoring system. You should always keep your score as a priority!
The FICO(r) Score 9 has several changes compared to its predecessors. You can no longer include medical debt in your score calculation. Therefore, if your score has been affected by a bill you received from a physician for surgery, it will be less than if your score was affected by a credit-card bill you received for the same procedure. Because collections do not affect your rental history you can start building credit history by paying rent.
Credit score impact from rental history
While you might not think that your rental payments affect your credit score, they do. These information are reported by credit bureaus. One factor that affects credit scoring is whether you have made timely payments or missed them. Most credit scoring models will look at your rental history, as well your overall credit history. However, there are some important things you should know about this credit reporting data. For more information, read on.
Experian recently found that 75% of participants experienced a rise in credit scores after including rental payments on credit reports. The increase could be anywhere between 11 and 29 points. This change will help you, even though it might not seem significant. The impact isn't immediate, but it can go a long way toward improving your credit score. Read on to find out more about how your rental history affects your credit score.
MyFICO
You might be curious about MyFICO score 9, if you have low credit scores. You can access it for free from your credit card issuer, lender, or a credit counselor. You may also have a negative credit report, but if you dispute it, you can lower your score. The good news is that there are ways to improve your score and keep your interest rates low. Listed below are some ways to do this.
Medical Collections. According to the Consumer Finance Protection Bureau the impact of medical collection on credit scores is less than that of other types. You shouldn't ignore medical collections accounts completely. However, the FICO formula now takes medical collections into account. It is not clear how much. Because medical collection accounts aren't as important as other types, they won't have a negative impact on your score as negatively as other debts.
You can also get a FICO(r), Score.
FICO(r) scores have been around for over 30 years. They are a simple way to measure your creditworthiness. FICO(r),9 is the current version and was developed to be more credit-friendly for consumers. It considers things like rental history and payment history. However, it makes them less detrimental. You can also get a FICO(r), Score 9, by applying for debt consolidation loans, student loans, or home equity loans.
Although FICO(r), 9 may not seem like much, there are still things you can do that will help improve your score. You can make your payments on-time, for example. Doing so will raise your FICO score to 25 points. LevelCredit allows you to retrieve up to 24 years of past payments by reporting your payments to TransUnion. It is possible that lenders may not use the same model as you do. Therefore, it might take some time before you receive your FICO score.