Unlocking Your Fico Mortgage Score: A Simple Guide

FICO scores are a global standard for measuring credit risk and are used by 90% of the top 100 largest US financial institutions to make consumer credit decisions. Mortgage lenders use a combination of FICO 5, FICO 4, and FICO 2 to qualify prospective homebuyers. There are several ways to check your FICO mortgage score, including using the app Gravy, which offers a 7-day free trial, or MyFICO, which offers a free plan and several paid subscription tiers.

FICO scores and credit reports

FICO scores are a global standard for measuring credit risk in the banking, mortgage, credit card, auto, and retail industries. The FICO score is the most widely used credit score, used by more than 90% of top lenders. It is important to regularly check your credit reports for errors. You can get your FICO score from myFICO.com, which offers a free plan and three paid subscription plans. The paid plans automatically renew monthly and offer additional FICO score versions and credit monitoring. However, your lender may use a different FICO score than the version you receive from myFICO.

You can also check your FICO score for free from Experian, which offers a free credit report and FICO score. Experian also offers a digital checking account with no monthly fees and a debit card. Other sources suggest using tools like Gravy and Gravy+, which offer credit simulations and cash back on rent payments.

To get your mortgage credit score, you can use myFICO.com, which offers a one-time report for $40 or a subscription for half the price. You can also use DCU, which provides a free monthly Equifax mortgage FICO score. Mortgage lenders use a combination of FICO 5, FICO 4, and FICO 2 to qualify prospective homebuyers.

It is important to note that your FICO score may vary depending on the bureau and lender. There are three main credit bureaus: Experian, TransUnion, and Equifax. Mortgage lenders typically use the middle score from these three bureaus. Therefore, it is recommended to get your score from all three bureaus to identify your middle score.

How to get your FICO score for free

FICO scores are used in 90% of lending decisions in the US, so it's important to know what your score is before applying for a loan. There are a few ways to get your FICO score for free.

Firstly, you can check with your credit card issuer. Many card issuers provide their cardholders with free access to their credit score. However, you will need to check whether this is your FICO score or a VantageScore. While both are useful for understanding what factors are affecting your credit score, FICO scores are more beneficial since lenders favor them when determining your creditworthiness. Some card issuers that provide free FICO score access include Capital One and Discover.

You can also access your FICO score for free through online services such as Gravy and Experian. Gravy offers a 7-day free trial of its Gravy+ service, which includes an instant read of your FICO 4 score, one of the most accurate mortgage credit scores. Experian offers a free credit monitoring service that provides early notice of potential fraud and helps you find loans and credit cards based on your FICO score.

Another option is to use the myFICO website, which offers a free plan that automatically renews monthly and includes a FICO Score 8. However, note that your lender or insurer may use a different FICO score than the one you receive from myFICO.

Finally, you can download mobile apps that have credit score dashboards, such as Credit Karma, to monitor your FICO score for free.

FICO scores and mortgage applications

FICO scores are a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. FICO scores are used in more than 90% of lending decisions.

When it comes to mortgage applications, lenders use a combination of FICO 5, FICO 4, and FICO 2 to qualify prospective homebuyers. FICO 5 is an older version of the score that is commonly used in the mortgage industry. It relies solely on data from the credit reporting agency Equifax and is more comprehensive as it includes employment and residential history along with detailed collection items. FICO 8, on the other hand, is a newer version that uses data from all three major credit reporting agencies: Equifax, Experian, and TransUnion. It is more tolerant of infrequent late payments, especially those that are one-off, than older FICO Scores like FICO 5.

You can check your FICO score from various sources. DCU provides a free monthly Equifax mortgage FICO score. MyFico.com also provides FICO scores for a one-time payment of $40. Gravy+ is another tool that can be used to track your mortgage credit score. It offers a 7-day free trial and is considered one of the most accurate mortgage credit scores.

It is important to note that mortgage lenders often get a single "tri-merge" report that contains your credit reports from each of the three credit bureaus and the associated FICO scores. They might use the middle credit score or, if you're applying jointly with a partner, the lower middle score of the two.

FICO score versions and their uses

FICO scores are used by lenders to make credit decisions. There are multiple FICO score versions available, with FICO Score 8 being the most widely used version. Other versions include FICO Score 9, FICO Score 10, FICO Score 2, FICO Score 3, FICO Score 5, FICO Auto Score 2, FICO Auto Score 8, FICO Auto Score 9, and FICO Bankcard Scores 2, 8, 9, and 10.

The FICO Score model has been updated periodically to reflect changes in consumer behaviour. For example, FICO Scores now reflect the fact that credit is used much more frequently than in the past. The different versions of the FICO Score are used for different purposes, such as mortgage lending, auto lending, and credit card decisions.

FICO Score 9 has several unique features compared to previous versions. For example, any third-party collections that have been paid off no longer have a negative impact on the score, and rental history is now a factor. FICO Score 10 captures subtle shifts in consumer credit data, such as the increasing use of personal loans for debt consolidation.

Industry-specific FICO Scores, such as the FICO Auto Score and the FICO Bankcard Score, range from 250 to 900, while base FICO Scores range from 300 to 850. A higher FICO Score represents a lower credit risk to lenders, indicating that you are more likely to pay back your debts.

Improving your FICO score

Firstly, check your credit report from all three credit reporting agencies for any incorrect information. Dispute inaccurate or missing information by contacting the credit reporting agency and your lender. You can obtain your FICO score from a loan officer, and many lenders will do this for free.

Your credit utilization, or the balance of your debt to available credit, contributes 30% to a FICO score calculation. Keep balances low on credit cards and other revolving credit as high outstanding debt can negatively affect your credit score. Pay off debt rather than moving it around. The most effective way to improve your credit scores in this area is by paying down your revolving (credit card) debt.

Making payments on time to your lenders and creditors is one of the biggest contributing factors to your credit scores, making up 35% of a FICO score calculation. Use payment reminders through your bank's online portals if they offer the option. Consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account. If you have missed payments, get current and stay current: the longer you pay your bills on time after being late, the more your FICO score should increase.

Frequently asked questions