Understanding Your FICO and CreditWise Credit Scores
Understanding your FICO and/or your “VantageScore” credit scores is vital to improving your financial situation. Both scores are calculated using the same five categories, but the weights given to these factors may differ. The FICO score is more influential, as it is used by nearly 90% of lenders for credit decisions. CreditWise, on the other hand, is calculated based on information from your credit reports and does not have a history of credit.
Your credit history, meanwhile, is the most important factor that determines your overall score. A credit history with at least one late payment or missed payment can have a negative impact on your overall score. Most experts recommend that you keep your credit utilization ratio below 30%. But how do you get there? Listed below are some helpful tips. First, you need to know how to calculate your credit utilization rate. Your utilization ratio is the percentage of your total debt to available credit. If you have many credit cards, you should keep your balances low, which will help your overall score.
You can use a free service like CreditWise to monitor your credit score. It uses the VantageScore 3.0 scoring model from TransUnion and is available to all credit card holders. Both credit score providers report their data weekly. You can also access your credit score by signing up for an online or mobile app. The VantageScore model is similar to the FICO Score, and both credit scores are based on your payment history and the amount of debt you have.