All consumers should be aware of their credit score by checking their credit report. Amongst other benefits, periodically checking your score ensures that fraudulent activity is timely recognized and can also help in planning for indebtedness from a car loan, mortgage, or student loan. Most online credit cards or banks allow the account owner to obtain their credit score for free. Some credit card companies and banking institutions use different credit score calculating models such as FICO or Creditwise. If your credit card company or bank does not offer this free service, a free credit report can be obtained at AnnualCreditReport.com. No matter which direction a consumer goes in, they should always stay on top of their credit status.
What is a Credit Report
A credit report is a statement that has information about your credit activity. When a consumer takes out a line of credit, i.e., a credit card, personal loan, or mortgage, the lender that gave the line of credit keeps a record of how much (and how often) the consumer pays, the credit limits, and loan balances. The credit reporting companies combine those records into a credit report. Not all lenders report to all three credit reporting companies, and therefore the information on a credit report may vary. Your credit report and your credit score are not the same thing. Your credit report contains information that a credit reporting company has received about you. Your credit score is calculated by plugging the information in your credit report into a credit score formula.
How Credit Scores are Calculated
Both FICO and CreditWise use one of the three nationwide consumer credit reporting companies: Equifax, Experian, TransUnion. FICO uses Equifax, whereas CreditWise uses TransUnion. Checking your score on different platforms can result in differing scores. This can be a result of the platform using information from a different time (“as of” date) or because the information is obtained from a different credit bureau using a different score mode. Either way, the credit scores should be close in number. The range for FICO scores is 250 through 900. The determination of the score is based on all or some of the following factors:
- Your history of making payments on time
- The age of your credit accounts
- How much credit you are using
- Recent inquiries for credit
- Recently opened new credit or loan accounts
- How much credit you have available
It is also important to understand what the number means and what it could mean to lenders:
- 800-900 is considered Exceptional
- 740-799 is considered Very Good
- 670-739 is considered Good
- 580-669 is considered Fair
- 250-579 is considered Risky
If fraudulent activity is discovered, the credit bureau should be contacted directly to report this. For Equifax, they have a lot of this information directly online.
Repairing Your Credit Through Bankruptcy
If you are seeking to repair your credit, a bankruptcy proceeding may be a good option. It is important to choose a New Jersey bankruptcy attorney that you are comfortable with and whom will answer all of your questions. If you are seeking representation, please give us a call for a free consultation. We have office locations in Wayne, Hoboken, Newark, and Hackensack.
Whether you need to completely eliminate your debt through Chapter 7 bankruptcy, or need to reorganize your credit payments through Chapter 13 or Chapter 11, we are well qualified as a full-service bankruptcy law firm for people in these and other New Jersey counties: Passaic County, Hudson County, Essex County, Bergen County, Morris County, and Sussex County. Call us today at 973-870-0434 or toll free 888-412-5091.
FAQs
There isn't one credit score that's necessarily more accurate than another. Your credit scores depend on the information from lenders and creditors in your credit reports. But different credit-scoring models may take different factors into account or weigh certain factors more heavily than others.
Why is my CreditWise so much lower than FICO? ›
How Credit Scores are Calculated. Both FICO and CreditWise use one of the three nationwide consumer credit reporting companies: Equifax, Experian, TransUnion. FICO uses Equifax, whereas CreditWise uses TransUnion. Checking your score on different platforms can result in differing scores.
What is a good CreditWise score? ›
Scores from FICO and VantageScore typically range from 300 to 850. FICO says good credit scores fall between 670 and 739. VantageScore says good scores fall between 661 and 780.
How do you understand your credit score? ›
Here's how FICO breaks down credit scores:
- Below 580: poor.
- 580 to 669: fair.
- 670 to 739: good.
- 740 to 799: very good.
- 800 and above: exceptional.
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
Is CreditWise my actual credit score? ›
Although your CreditWise score is different than a FICO® score and is unlikely to be the score your lender uses, your CreditWise score gives you a good indication of your credit profile.
Do lenders use FICO or Vantage? ›
For the majority of lending decisions most lenders use your FICO score. Calculated by the data analytics company Fair Isaac Corporation, it's based on data from credit reports about your payment history, credit mix, length of credit history and other criteria.
What is considered a good FICO Score? ›
According to MyFICO.com, a good FICO credit score is one that's between 670 to 739. Scores higher than that—between 740 to 799—are considered “very good,” and 800 and above are “exceptional.” A “fair” credit score falls between 580 to 669 and a “poor” credit score is anything below 580.
What is the most commonly used credit score? ›
FICO scores are generally known to be the most widely used by lenders. But the credit-scoring model used may vary by lender. While FICO Score 8 is the most common, mortgage lenders might use FICO Score 2, 4 or 5.
What is the average credit score in the United States? ›
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
Accuracy and Comparisons: While no credit score tool can claim 100% accuracy, CreditWise, like other bank-provided scores, tends to be within a few points of the scores from different banks.
What credit score is needed to buy a car? ›
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
What is a good credit score by age? ›
How Credit Scores Breakdown by Generation
| Average FICO 8 Score by Generation |
|---|
| Generation | 2022 | 2023 |
|---|
| Generation Z (ages 18-26) | 679 - Good | 680 - Good |
| Millennials (27-42) | 687 - Good | 690 - Good |
| Generation X (43-58) | 707 - Good | 709 - Good |
2 more rowsGenerally speaking, you'll likely need a score of at least 620 — what's classified as a “fair” rating — to qualify with most lenders.
How do I know if my credit score is excellent? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750.
Which credit score is checked the most? ›
More banks and lenders use FICO to make credit decisions than any other scoring or reporting model.
What is considered a good FICO score? ›
According to MyFICO.com, a good FICO credit score is one that's between 670 to 739. Scores higher than that—between 740 to 799—are considered “very good,” and 800 and above are “exceptional.” A “fair” credit score falls between 580 to 669 and a “poor” credit score is anything below 580.
Does Capital One use FICO or Vantage? ›
Additionally, Capital One uses VantageScore to power its CreditWise tool.
All consumers should be aware of their credit score by checking their credit report. Amongst other benefits, periodically checking your score ensures that fraudulent activity is timely recognized and can also help in planning for indebtedness from a car loan, mortgage, or student loan. Most online credit cards or banks allow the account owner to obtain their credit score for free. Some credit card companies and banking institutions use different credit score calculating models such as FICO or Creditwise. If your credit card company or bank does not offer this free service, a free credit report can be obtained at AnnualCreditReport.com. No matter which direction a consumer goes in, they should always stay on top of their credit status. 
