Do you know your credit score? This year, more people than ever before will have access to this valuable piece of information, which is significant if you are considering borrowing money.
A few days ago Bank of America and JPMorgan Chase and Ally Financial announced that it will begin offering FICO credit scores to consumers for free this year. While these banks are not the first to provide free credit scores to their customers, their buy-in will impact a large number of American’s who didn’t have access to their scores before. In previous years, the FICO credit score has traditionally been concealed from consumers.
But all that’s changing.
Back in 2013, FICO announced that it would allow lenders to make credit scores available to consumers at no cost. As a result, a handful of financial institutions jumped on the opportunity to provide this information to their customers. Beginning in February, Ally Financial says it will start offering its customers free access to their scores and JPMorgan Chase says it will offering free FICO scores to around 10 million Slate cardholders in the coming months. And later this year, Bank of America will offer this information to its customers as well.
Why You Should Care About A Free Credit Score
- For starters, points matter. Knowing your score can help you take steps to become a better borrower. When your report is in front of you, you can see a full listing of factors that may impact your score. And when we are talking about credit scores, every point matters.
- Approval depends on it. The FICO credit score is the primary score used by lenders to determine whether a person can take a credit card or loan.
- Credit scores can tip you off to scammers. With the ever growing threat of identity theft, it is more important than ever before to know your FICO credit score. Knowing your credit score and obtaining a free copy of your credit report annually, will not only help you improve your future credit score; it can help you prevent financial hardship as a result of identity theft. If you see that your score has recently changed and you don’t know why, check if you have been a victim of identity theft. A credit report is also a great tool for monitor what information is being used to determine your score.
Even if your credit card company or bank doesn’t currently provide FICO credit scores to its customers, it’s important to request a copy of your report. You are entitled to one free copy of your report annually. Email Rea & Associates to learn more.