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FICO 9 Score: what is it and where can I get it?
by
Irene Scott
October 3, 2023
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In the world of finance, certain parameters come into play: lenders offer you a mortgage or car loan, extend your line of credit, and so on. These metrics allow them to know whether they trust the customer enough to grant him or her credit.
Borrowers have therefore developed several measurement systems to assess their risks. One of these is the credit score.
A good credit score can give rise to a number of important financial benefits. For example, it can be used to buy a car or house, or simply to make payments at a restaurant or supermarket.
If you are looking for ways to improve your credit score, you have probably already heard of FICO scores. This article explains what a FICO score is, how it is calculated, and how to improve it.
FICO is a credit scoring model introduced by Fair Isaac Corporation for consumers in 2016. The credit scoring model is updated from time to time. FICO 9 is one of the most recent scoring models.
If you would like to get your FICO 9 score, you can get it directly from FICO. You can also contact some credit card issuers, lenders or credit counselors.
Understanding FICO 9
FICO 10 is the latest iteration, while FICO 9 is the penultimate version of the FICO scoring model. Its main function is to show lenders and landlords, through scores, that you are able to pay your debts on time.
Although there are many credit scoring models, the FICO score is one to watch out for, since about 90 percent of lenders use it to determine your creditworthiness.
FICO is calculated differently from typical credit report data, and some debts carry more weight than others. With its unique algorithm, it measures factors such as new credit applications, length of credit history, payment history, etc.
All these factors are fed into the FICO formula to produce a three-digit number between 300 and 850, which represents the FICO score. For example, a score of 300 is the lowest. Therefore, it will not give you enough confidence to get large loans. A score of 850 is the highest, so being included in this category means getting the highest level of confidence from borrowers.
As a result, your chances of getting a loan, even with a high credit score, are 100% guaranteed. Categories with intermediate scores are usually reviewed individually by borrowers, taking into account many factors, such as whether they have already obtained a loan from a particular lender.
Due to different consumer trends and lending behaviors, the FICO scoring model has undergone several revisions, of which FICO 9 is one of the most recent. As a result, your credit score may be different depending on whether it comes from an earlier version of FICO or FICO 9. It is usually the lender who chooses which model to use.
Changes in FICO 9
FICO 9 was launched in 2014 and introduced significant changes in three main categories: rental history, medical collections, and paid collections.
While FICO 10 is currently the last FICO scoring product, FICO 9 will remain relevant for years to come, with key changes perfect for consumers. In addition, the FICO 9 score is a good starting point for those with low or no credit score.
Let's take a look at these differences and why they may be useful.
Rental history
If you rent your home, FICO 9 brings good news to your credit score! In previous versions, a good rental history did not change your credit score, but it maintained it. It simply maintained it. On the other hand, negative elements in your rental history, such as unpaid rent, lowered your credit score.
People who pay their rent regularly and on time will see their credit score increase with FICO 9. As we said earlier, this is a positive aspect. As we mentioned earlier, it is an advantage for people who are just starting out, because it is a free credit score as long as you pay your rent on time.
Don't forget that landlords are not required to record your rent payment history with the credit bureaus, so you need to talk to them about this change.
Consider asking your landlord if he or she can forward your rent payments to the credit bureaus. Make sure you pay your rent on time and in full. This will help you improve your credit rating quickly.
Collect medical bills
According to a 2014 report by the Consumer Financial Protection Bureau (CFPB), medical debt has a significant and negative impact on consumer credit. In the United States, medical debt is one of the biggest challenges, along with student debt for higher education.
According to the CFPB, 43 million Americans have unpaid medical debt on their credit report. With this information, older versions of FICO are putting more pressure on consumers to be less forgiving of unpaid medical collections.
The Consumer Financial Protection Bureau has pointed out that consumers can be held liable for medical debt as a result of billing disputes between the medical provider and the insurer.
This means that consumers may not be aware of their medical debt until they receive a call from the collection department. As a result, consumers have to worry about their credit rating, in addition to having to deal with annoying phone calls from collection agencies.
If you are facing this pressure, do not worry. Fico 9 will definitely help you solve these problems. Fico 9 aims to lighten your workload by focusing less on medical collections in determining your credit rating.
Keep in mind that this does not mean that you no longer have to pay past or present medical bills. They still affect your rating, but not as much as non-medical debts, unlike previous models.
Paid collection accounts
The old rating systems were not very consumer-friendly with regard to debt in general. Even if you have already paid and cleared your old collection accounts, unless you have taken active steps to clear your paid debt history or waited 7 years, these accounts continue to appear and negatively affect your credit score.
With FICO 9, however, paid debts will continue to appear, but they will be removed from your credit score as long as they have been paid in full. So let us assume that your score is low because of your current debt. Once the debt is paid off, your credit score will have a chance to recover, unlike before.
This feature is also present in the newer versions, FICO 10 and FICO T. This makes FICO 9 more flexible and practical for customers who have a high level of responsibility for their debts.
Responsible, forward-looking customers can therefore benefit from this change in two ways. First, even if they have debts due to unforeseen medical or other recorded financial emergencies, consumers have the opportunity to improve their FICO 9 credit score, so they are highly motivated to request a FICO 9 assessment. In addition, customers are motivated to request a FICO 9 assessment.
In addition, customers are motivated to pay off outstanding debts because, by doing so, they can improve their credit score for a debt that was previously collected.
Of course, this can often seem like a daunting task, but a good debt collection history is what leads to a better credit score, offering a better chance of obtaining a larger loan at a lower interest rate.
Which lenders have adopted FICO 9?
Although FICO 10 is the most recent version, not all lenders have adopted FICO 9. In fact, most lending institutions still rely on FICO 8. However, Tommy Lee, senior scientist at FICO, predicts that FICO 9 will be the basic model for credit scores for years to come. It is therefore essential to learn and understand FICO 9.
Among those who have adopted FICO 9 are.
- Credit cards
- Auto lenders
- Auto lenders
The most notable omission from the list is mortgages that still use FICO scores 2, 4 and 5. Whichever credit score model is used by the lending institution of your choice, remember to follow the basic rules, such as paying your monthly installments on time and reducing your debt balance as much as possible.
Some lenders may use their own credit score model, so check it before applying for a loan. If you cannot find their model, ask them how to calculate FICO 9. In most cases, it will be easy to explain. In most cases, it will be easy to find a borrower who accepts this scoring model.
What the FICO 9 score tells lenders
The FICO 9 score allows lenders to assess the likelihood of repayment of a debt. It is a proven formula that helps them manage consumer credit behavior, improve operational efficiency and comply with regulations.
In fact, it is one of the key factors when lenders decide whether to offer you credit or a loan. The calculations are not difficult to understand or perform, even if you do not have a strong mathematical or financial background.
If you need a loan to finance the purchase of a car in the next couple of years, a good credit score will be of great help, as the bank will be more than happy to help you make this important purchase.
It is therefore important to check your estimated or actual FICO score before applying for a loan or credit card. Try to monitor your credit score on a quarterly or even monthly basis. However, calculating your credit score annually is essential for understanding and planning for the coming year.
Where to get your FICO 9 score
There are several ways to obtain your FICO 9 score. Some are free, others must be paid for. Some are free, some have to be paid for. Some are free, some have to be paid. Some are free, some are not:
- Buy it from FICO.
- myfico.com: offers a free FICO score estimate; you can also get your actual FICO score for about $20 per report.
- Check to see if your credit card company or bank allows you to view your FICO score. Keep in mind that only some banks offer this service for free.
- You can contact the Consumer Financial Protection Bureau to obtain your FICO score for a small fee.
- Open-access FICO: You can get your FICO score through a lender and/or credit counselor.
Try to do the calculations regularly. As mentioned above, this will save you time when planning your budget for the following year.
How to improve your FICO score 9
Whether or not you are a reliable and responsible debtor, there will be times when you need to improve your credit score. Getting married, having children, going on vacation, and other things we usually enjoy require more spending from one year to the next. Do you want to improve your credit score? Don't worry. Here are some tips that will help you reach your goal:
- Avoid late payments - Your payment history is the key to determining whether you are at risk for credit. As much as possible, pay your debts on time. The later you pay, the more your credit rating will suffer. Establish a payment plan, keep track of your expenses, and monitor your budget.
- Reduce your use of credit - The regularity with which you use credit is also a factor in your score. If you can, try to maintain a credit utilization rate of 30 percent or less, as recommended by Experian. Check your credit card balance every month. Compare how much you have spent with what is available on your accounts.
- Monitor your credit report - Keep an eye on your credit habits to see how you can improve your spending. Also pay attention to any irregularities so that they can be resolved quickly and do not lead to a further drop in your score.
- Report rent payments - Reporting rent payments will help you build your credit, even without a credit card.
- Improve your spending habits - Try to pay the "right" debts and checks, including those for medicine, care, rent, utilities, education and other payments that are vital and a priority for banks and other borrowers.
