credit-scores

New to the Live Richer Challenge: Credit Edition? Learn more about it HERE.

Need to catch up? Head here and then come back!

Day 1: Credit Goals

Day 2: Credit Basics

Day 3: Grab Free Credit Reports

 

Week 1: Credit Knowledge

Day 4: Grab Free Credit Scores

Today’s Easy Financial Task: Get your free credit score

How to rock this task:

  • Learn what a credit score is
  • Learn how to pull your credit score(s) for free

“Another day, another dollar.” Or in this case, another day, another credit task.

Today’s task is all about discussing what a credit score is and how to get access to your credit score(s) for free.

 

What’s a credit score?

Don’t confuse your credit score with your credit report.

The data on each of your credit reports is analyzed to assign you a credit score that reflects your risk.

A high credit score means you’re a lower risk borrower who is likely to repay debt.

A low credit score means you’re a higher risk borrower that may not be able to repay debt.

Since you have three different credit reports from each major credit bureau, you also have three different credit scores. Depending on where you pull your credit score, you may be able to get credit scores that reflect data from one, two, or all three of the bureaus.

There are several credit score grading systems, including consumer education scores offered by Experian, TransUnion, and Equifax. The purpose of consumer education scores are to give us a general sense of where we stand.

These scores are not typically used by the financial industry to make credit decisions.

 

The FICO Score Model

The top tier credit score model that’s most often used by creditors to judge your creditworthiness is the FICO score model. This is the model we’ll go over in this Challenge since it’s the most widely used version.

FICO scores range from 300 to 850:

  • 751 – 850 – Excellent
  • 701 – 750 – Good
  • 641 – 700 – Fair
  • 581 – 641 – Poor
  • 300 – 580 – Very Poor

Usually, you have to pay for a FICO score, but you can get access to comparable credit scores like the VantageScore for free.

The VantageScore uses a similar system as the FICO score model to arrive at your score and is a valuable way to measure your score growth. We’ll talk about the factors that go into calculating your credit scores tomorrow.


Dream Catcher, you know I have a special place in my heart for you, so I found a place where you can get your FICO score for free. Yes, FREE!

 

How to Grab Your Free Credit Score(s)

You can hop on over to www.creditscorecard.com to get your FICO credit score for free.

You can also check with your bank or credit card company to see if free credit scores are offered to customers. For example, American Express, Bank of America, and Chase all offer free FICO scores if you have certain products.

Once you grab your credit score(s), take a moment to review them.

***Sidebar: Do you have a business? Did you know it has it’s own credit score? Yup! Get your free business score, plus free tips for building business credit here: Nav.com/Budgetnista

If you’re shocked or worried about your score, don’t fret.

During this Challenge (starting next week), I’m going to give you tips to clean up your credit report and show you how you can increase your score by as much as 100 points in a year.

Leave a comment below or reach out to your accountability partners if you have any questions. Don’t forget to check into the Dream Catchers: LIVE RICHER group as well.

 

Share what you’ve learned today with your tweeps:

Today I got my FICO score for free. Day 4: #Liverichercredit Click To Tweet

Live richer,

Tiffany

P.S. Don’t forget to get your free Live Richer Challenge: Credit Edition Starter Kit. Get it HERE
P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.

lrcccalendar

You can also reach out to me here:

Twitter: @thebudgetnista

Instagram: @thebudgetnista

Facebook: The Budgetnista

Private Forum: Dream Catchers : LIVE RICHER


 

*** Need Help? Feeling Overwhelmed? Want to work with someone one-on-one to improve your credit? Netiva “The Frugal CrediTnista” is offering her renowned, full credit improvement services & consultations at a special discounted price just for Dream Catchers! Learn more and get the help you need, HERE. ***

 

Want to work through the Live Richer Challenge: Credit Edition in a workbook? It’s part of a bestselling series and has already hit #1 on Amazon! Get your copy below.

 

My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters, I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.

What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to either. YOU are my Lisas. I feel protective over you and your financial journey.

The products and services I recommend in this post pass my Lisa Rule. Yes, I may be an affiliate and earn a commission off of referrals, but I would not recommend a product or service that I didn’t believe was helpful and useful.

 

The Challenge is sponsored by

  • Toyella La’Shun Williams

    My credit is horrible and this year is all about cleaning my act up. I pulled my reports and all I could do is shack my head because looking back I realized that I could have paid all my debt last year if my priorities were in order.

  • Toyella La’Shun Williams

    My credit is horrible and this year is all about cleaning my act up. I pulled my reports and all I could do is shake my head because looking back I realized that I could have paid all my debt last year if my priorities were in order.

    • neceyluv

      That’s great though! Now that you know….well….you know the saying. When we know better, we DO better! I went through the same thing about a year ago, when my score was in the mid-500s. Today my FICO finally hit the 600 mark at 607, and my Credit Wise/Vantage Point is at 642. I’m praising God all the way through! You can do it too!

      • Toyella La’Shun Williams

        And to think I could have used last year tax to have taken care of all my old bills and then had money left is what’s embarrassing. I want to buy a house so bad and I probably could be in that position this year to do that. But this year tax will be spent on those bills and that will be my first goal then the remaining put in a savings so when those bills have been put in as paid my credit will go up (im praying) enough to get me an unsecured loan which I will use that savings towards the deposit. Then that will go with my credit mix since I have a car loan but then I would need that 3rd mixture which I don’t know what I would do maybe a personal loan

        • neceyluv

          Girl, I can “wish I” “coulda” “woulda” “shoulda” all day long! LOL! Believe me, I GET it! The only thing we can do is learn from it and move on. We both have solid plans now, it’s just gonna take time. It’s often those adversities that propel us forward….if it was easier, there’d be no lesson to learn. Which secured card are you aiming for? I have Capital One and Discover. The limits aren’t much, but I’m learning how to manage it by charging only small amounts and then paying it off at month’s end.

          • Toyella La’Shun Williams

            I want to go with discover but I’ve heard good things about capital one as well…

          • neceyluv

            I don’t think you’ll go wrong with either one. Discover gives you the free FICO score, and Capital One gives you the Vantage Point score. And you get cashback rewards with Discover, but it might be a little harder to get. I had to apply twice (I was determined lol). And you can have a savings account with Capital One, too.

  • MsDavis

    Thank you with the tips I was able to remove 3k off my report using credikarma. This allowed me to be able to get uncscured cards and now I am getting my credit right. I only have two things to pay off in collections and the rest school loans.

  • Ms. Haynes

    When I try to login, it says there’s a security certificate issue with that site.

  • Susan Holloway

    Is the FICO score and the credit score two separate scores or the same thing?

  • Susan Holloway

    One more question, I see another person uses Crédit Karma, I use it as well. Can I uses credit karma and the credit score it provides or are the actual credit reports more accurate?

  • Linda Inquisitive

    I check my credit score frequently, using credit Karma, credit Sesame, and discover. I don’t think these scores are the same scores the mortgage company uses. Can someone explain this ?

    • neceyluv

      I think mortgage companies do use a different scoring methodology than the others – probably because the amounts borrowed are increased and therefore “the stakes are higher”!

  • Juanzel Cardoza Felder

    I got my free credit report. Goal is to monitor it on a monthly basis to see how it increases.

  • Bea

    Same question. What is the difference between the scores I get from credit karma, credit sesame and the like vs. what the bank see’s. For example I checked my score on credit karma and then went to a bank to open a secured card and my score was 20 point lower at the bank. What’s the difference?

    • STACEY FLYNCH

      This is a FICO score from Score Card. Credit Karma uses Vantage score. Most lending companies use your FICO credit score not Vantage score.

      • Bea

        Great thanks

  • Charlotte

    I got my free report and boy o boy do I have alot of work to do, but I hate that my credit karma score is so much higher than actual, giving me some false hope, oh well, time to jump into action. I need those 100 points by the end of the year

  • Amanda

    I received my credit report and score and I’m hopeful to correct the mistakes I’ve made in past. My goal is to increase my score and keep my credit in check.

  • Rebecca

    Hi,

    I joined credit scorecard and received one FICO score, a much higher number when I enrolled through Bank of America and a much lower score when checking through my Chase account. How is that possible?

    Thank you!

    • neceyluv

      Hi Rebecca! If you go to any credit website, like Credit Karma or Magnify Money, you’ll find articles on this subject. Basically, they all use different scoring mechanisms. Hope this helps!

  • empressamber

    I’m so thankful for this challenge. Ironically, my husband pulled me aside this morning and said that we need to jointly work on our credit so that we are on the same page. I told him about this challenge and that I am ready to tackle it. My poor money/credit management is learned behavior from my mom…I am committed to changing this and passing on new behaviors to my children. I pulled my reports yesterday and my score today…let’s just say that I have a mountain to climb, but I am able and willing and WILL DO IT! Thank you so much for Tiffany and the Dream Catchers!

  • Shirley

    Already focusing on cleaning up my report and increasing my score. I want to buy a condo or townhouse in the next 12-18 months, and I know this score is going to be crucial to my getting a good rate.

  • Etosha Manning

    I tried to get my fico score twice from the Discover website but I keep getting an error saying something is wrong on their end. And of course there isn’t any sort of contact information on their website. Did anyone else encounter this issue? Are there any other sites with reliable/accurate FICO scores for free?

  • Lois Samuels

    got my FICO score today

  • Kemberly

    I just signed up to get my credit score. I have been putting it off but will be looking to by a home within the next year and need to take control of what I can control. I am happy I did this! It really confirmed what I already knew. Almost like I identified the symptoms but these activities are putting a name to it and now its time to act.

  • Jae

    2017
    1. Clean up outstanding debts by end of Q4
    2. Increase credit score by 200 pts by end of Q3

  • Sherreen Snipes

    Thank you, I absolutely love this group and am learning alot. Is there a site where you can see all three fico scores for free, I usually pay for mine but was wondering the free sites usually only offer one score and I’ve heard credit karma is not to accurate as those are not fico scores.

    Thank you

  • Fay Henry Reddick

    WOW!! The FICO Score shows a big difference!! Thanks for all you’re doing for us!! This is excellent information!!

  • Vanessa

    Man. I got work to do.

  • Charmaine Glover

    I am looking forward to seeing my score rise. I will be doing everything that I can possibly do to maintain this task. My student loan is what is really bothering me.

  • UTONIA LLOYD

    I’m loving all the information I just saw my fico scorecard I thought it was better than what it’s showing I have work to do.

  • Felecia McDonald

    I am having a difficult time retrieving my score card. I keep getting this error message : Sorry, something went wrong on our end.

  • Alitha Hawkins

    Got my credit score and my husband’s. We decided to make these changes together. We are on the poor side and looking to go up from here. We have goals as a married couple and this is the first step for us to achieve that.

  • Laurie Abernathy

    Will you incorporate the concept of “the power of cash”?

  • I guess it’s time to check out my business score! I haven’t thought of that before. Thanks!

  • Ericka Davis

    Hello Ms. Tiffany!! I am loving the challenge. On this day I discovered checking my business credit score. I don’t think I have checked my D&B since I originally enrolled over 6 years ago. Thank you!

  • Nikia Kae Cummings

    After doing day 4, I have a question!

    How come on the Discover Scorecard and the FICO model there it shows that 660-721 is considered “Good,” while on the FICO score levels listed in this post, it shows “Good” starting at 700?

    This is important to me, because I am at 632, and so I’m either really close to the good mark, or still very far away!

    • Kyla McMillan

      I’ve seen everything from 669-700 considered as the minimum for “good” in my research. I checked about 5 reputable sites. I’m going to play it safe and use 700 as the benchmark — it can’t hurt to aim higher!

  • Kescy Mathurin

    When obtaining you credit card score can you get only from one credit bureau. Following the link I only received my scredit score from Experian. Is there for me to obtain my fico score from the other credit bureaus?

  • Donna

    Today I learned that i can get a free credit score..Thanks for the information…onward and upward….

  • Nyoka Michelle

    I have gotten my credit scores. This is very good information to know. I also need to request my business credit score.

  • Patrice Roberson

    Very excited about the free credit score.

  • LaTerrica

    I did not know credit plays a big part, I thought loan officers only looked at my job history. Now I see different.

  • Corinne

    I am so glad that I found this group. I am so determined to reestablish my credit. Right now its awful but I know after I do all that’s needed I will have excellent credit.

  • Tonya McMillon

    I was a little skeptical about doing this because I haven’t pulled my credit report and seen my scores in a while, but I’m glad I did. Great results. On my way to purchasing another home within the next year!

  • MrsBarabin

    what about medical bills? How do they affect your credit? If I pay then off will it help or will it not at all. I really want to know what are the benefits of paying off medical bills

  • Kelly Ransom

    Wow it’s poor but I only have two student loans Then two things to pay off total of $1,100.00 Oh yeah this is going to be fun and easy. I got this. I should of checked a long time ago could of been dent free. I just assumed it was awful. Well lnow I know and can do something about it quicker than I thought.
    I really glad I am doing this challenge. Thank you

  • Danielle Whitted

    I’m so glad I found this group. Today I check my credit report and received my score. I have some work to do.

  • Crystal

    Today I got my credit score for free!!! I love the LRC: Credit Edition. I look forward to the plethora of information and tasks we are being blessed with.

  • Danielle Rodriguez

    My credit score is considered very poor. I do not have any active credit cards because I cannot get approved for one and I just have negative collections from the past on my report.

  • I love to travel, and own my h

    My credit score is poor but I got card a while ago from creditkarma , need to work on my collection from the past.

  • Mona Carol

    awesome information on Fico score for me, it allows me to set a goal and continue to increase my score. Thank You very much!