Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » The FICO Simulator Explains the Ups and Downs of Credit Scores

The FICO Simulator Explains the Ups and Downs of Credit Scores

By
Add to Favorites:

Did you ever wonder if that bill your forgot to pay would result in your credit score taking a dip? Or wondered how your financial planning affects your score? If so, you don’t have to wonder any longer. FICO has rolled out their new Score Simulator, which gives people a look at what goes into lowering or increasing their credit score.

Most lending decisions are made by looking at these scores so it’s good information to have, and the new simulator gives people more information on what goes into creating their score.

“Because FICO Scores are used in more than 90 percent of U.S. lending decisions, consumers want to better understand how their actions might affect FICO Scores,” said Geoff Smith, vice president, Consumer Scores, at FICO.

“The newly enhanced FICO Score simulator enables consumers to run simulations using the actual FICO Score 8 formula as well as data from all major credit bureaus. This is an extremely easy-to-use and valuable tool for anyone who wants to understand how their financial behavior could impact their FICO Scores.”

What it looks like

The FICO Score Simulator can be found on the FICO website, offering comparisons, which are actually based on information obtained from the three major credit reporting agencies.

The new simulator lets people get a grasp of how their actions affect their score by offering side-by-side comparisons. This way they can see how several actions will affect their score, not just a single one, whether that is paying off a credit card balance, missing a payment or getting a bump in their credit limit – or all of them.

They have added half a dozen new simulations to their list of scenarios so people have more options to choose from, and will be able to run scenarios using two dozen different kinds of actions. The database includes:

• Forgetting to pay a bill
• Paying down a credit card balance
• Refinancing a mortgage
• Taking out a car loan
• Maxing out credit cards
• Increasing the limit on a credit account

When the scenario is run, people will get contextual information along with explanations so they can get a better understanding of how credit scores work.

Add to Favorites:

Related News:

Discover Giving FICO Scores to Everyone

By Dar Dowling, Posted: June 07, 2016

If you want to get your credit score for free you now can at Discover whether or not, you have a Discover Card. Continue reading
FICO Scores with The First Bankcard Mobile App

By Dar Dowling, Posted: February 12, 2016

Mobile apps are used for everything from listening to music to ordering lunch, and now First Bankcard customers can get their credit score with the First Bankcard app. Continue reading
Women Score a Win When it Comes to Credit

By Dar Dowling, Posted: April 01, 2016

If you thought there might be a divide between how men and women are making financial decisions like handling money and managing credit and debt you are on the money. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit