Getting Your Credit Score from a Bank

You can get a free credit report from each of the three major credit agencies: Equifax, Experian and TransUnion. With the exception of Experian, you will be charged a fee if you want to see your actual credit score. The good news is that you may be able to get your score for free from a bank or credit card issuer. Here’s how to check your credit score.

How your credit score is calculated

The FICO score is the most commonly used type of credit score. He is calculated using different data your credit report, including:

• Payment history (35%) — Regular, timely payments and the absence of bankruptcies or payment defaults are proof of sound financial management.
• Amounts due (30%) — An important number is your credit utilization ratethe amount of debt you are carrying relative to your credit limits.
• Length of credit history (15%) “The longer, the better.
• Composition of credit (10%) — It helps to have both revolving and installment credit.
• New credit (10%) — Too many recent credit applications, which trigger a firm credit checkcan lower your score for several months.

Your credit score affects your ability to qualify for different types of credit, such as auto loans and mortgages, and the terms you’ll be offered. In general, the higher your credit score, the easier it is to qualify for credit and get favorable terms. Since so much can depend on your credit score, it pays to keep track of it and work to improve it when it’s necessary.

Can I get a free credit score from my bank?

Previously, if you wanted to see your credit score, you had to shell out money, either for a monthly subscription service or for a one-time look. However, since 2013, FICO (Fair Isaac Corporation) enabled lenders to make previously hard-to-obtain scores available to consumers for free through its FICO Score Open Access program. FICO announced in December 2018 that more than 300 million people could get their credit scores for free through the program. More than 170 financial institutions and eight of the top 10 credit card issuers participate in open access.

Participating companies include Bank of America, Citibank, Discover, HSBC, Key Bank, Merrick Bank, Navy Federal Credit Union, PenFed Credit Union, Sallie Mae, SunTrust, Union Bank and Wells Fargo.

Get your score

If your bank or credit card issuer offers free credit scores, you should be able to check your score by logging into your online account or by looking at your monthly statement. There are also other resources that allow you to view your credit score or credit report for free. If you’re wondering if you should pay to see your credit score, the answer is probably no.

In addition to free credit scores, some banks offer perks designed to help you understand and improve your score. The First National Bank of Omaha, for example, gives you 24/7 online access to your FICO score and shows you which key score factors affected your number. And Barclays provides your credit score and email alerts whenever your credit score has changed.

VantageScore vs. FICO

It is important to note that not all credit scores are created equal and different banks and credit card issuers may provide access to different scores. Shortly after launching the FICO Score Open Access program, credit bureau Experian introduced a similar program, which allows banks to share their VantageScore credit score with consumers.

Today, both of these systems operate on the same 300-850 point scale, and each uses similar criteria to calculate scores, but they weigh each item differently. With FICO, for example, your payment history is 35% of your score; with VantageScore, it’s around 40%.

The result is that the two scores will usually be different, even for the same person on the same day. This isn’t necessarily a bad thing, but it’s something to be aware of so you can make sure you’re comparing apples to apples when tracking your scores.

What’s free, what’s not

The Fair and Accurate Credit Transactions Act (FACTA)adopted in 2003, requires all Americans to access free credit reports from each of the three major credit bureaus (Experian, Equifax and TransUnion) once every 12 months. AnnualCreditReport.com, a site sponsored by the three bureaus, is the easiest and most comprehensive site to use to obtain these free reports.

You can also receive a free credit report if you’ve been the victim of fraud or identity theft, been denied credit, or if your current credit has changed (interest rates, credit, etc.) because of your credit. – or if you are offered a higher interest rate than other consumers get from a creditor.

However, the law does not provide for a free annual review of your credit score, and you cannot obtain a free credit score through AnnualCreditReport.com. However, that doesn’t mean you can’t see those three small (or big) numbers for free. Since 2011, adverse credit actions, such as changes to a credit limit or interest based on a credit score, give consumers the right to see the credit score used in the determination.

MyFICO.com allows consumers to purchase their FICO score from one of three credit bureaus for $19.95 per FICO score report. You can also purchase the consumer version of your credit score directly from one of the credit bureaus or other sites. But beware: this number may be different (usually higher) than your FICO score. MyFICO indicates that a person’s drinking score can be up to 100 points higher than their FICO score.

Some Free Credit Score Sites

Many banks and credit card companies now offer their customers a regularly updated overview of their credit score free of charge, although the calculations may vary from company to company. Experian now offers a free FICO credit score on its website.

Even if free Consumer credit the scores are not FICO scores, there are good reasons to review them. “They can be great indicators of overall credit health, alert consumers to potential fraud issues, and more,” says Thomas NitzcheMedia Relations Manager at ClearPoint Credit Counseling Solutions.

Despite the differences, if you want to see the consumer version of your FICO score, the most reputable sites include:

• Credit from Experian Works
• Capital One’s CreditWise
• credit karma
• Sesame Credit

These sites don’t require you to provide your credit card to check your score, which means you can check it as often as you want at no cost. “The caveat is that I’ve seen these scores inflated by up to 60 to 70 points higher than the FICO score that banks and other lenders will see,” says Pamela Capaladcertified financial planner and advisor in New York.

And check your wallet for a free snapshot of your credit score. Some credit cards, such as the Discover it Cash Back credit card, give you a free FICO score (the authentic version of banks and lenders) based on your TransUnion credit report once a month along with your statement.

The essential

Your credit score affects your ability to obtain credit and the terms you will be offered. Until recently, the credit score industry was pretty secretive and it was difficult (or expensive) for most people to get their hands on their score. Today, however, a growing number of banks and credit card issuers provide credit scores for free, which is extremely valuable to consumers trying to track and improve their credit health.