A FICO score is one of the most important three digit numbers that you will ever come across. Essentially, that one number defines who you are, how trustworthy you are, how well you manage your money and more. You must understand that importance of this number and how it affects you, as well as needing to know how you can make sure that your personal FICO number is accurate and as high as it possibly can be. To do this, you can choose to either manage all your financial information yourself and frequently request reports from the credit monitoring agencies, or you can sign up to a service that does all of this and more for you. One of those services is MyFico. But just what is it, why is it important and should you sign up for it?
What Is MyFico?
Essentially, MyFico is an online service that allows you to see and monitor your FICO score. When they first started, they offered a completely free service, but this has now changed as they have improved the work that they actually do. Indeed, they are often referred to as “not free, but the only score that matters”. Essentially, they are there to help you improve your personal FICO score, which will open a lot of doors for you. For instance, if you improve your score by just 100 points, you could pay as much as $40,000 less interest on a standard 30 year mortgage, which is a lot of money.
MyFico has been designed to be user friendly and their entire website speaks of this. They have a range of different products on offer that you can choose from, such as a financial help service, credit reports and more. Each of these are designed to ensure you can get the most benefits out of your personal credit score, as well as being highly informative and educational. The reality is that 90% of lenders will use a FICO score when it comes to make a decision about you, which goes to show how important it is to have a good score.
MyFice offers three bureau credit monitoring, which allows you to track your actual score through each of the agencies. This is important, as different lenders contact different credit bureaus in order to make their decision about you. Not only are you able to receive your current credit score, however, the service also allows you to continuously monitor it. This means that you will be alerted if there are any changes, which in turn can help you to avoid identity theft. Furthermore, the service allows you to see additional score versions, which are often used when applying for car finance, mortgages or bankcard lending.
The bottom line is that MyFico wants to empower its subscribers to be able to make sound financial decisions.
What Is a FICO Score?
All of this sounds very interesting, but if you don’t understand the basic concept of a FICO score, then you may also not understand why the MyFico service is so important. Essentially, we now live in a world that is focused on credit. As a result, there are a number of organizations, some of which (such as Experian) are now global, which look at how you have managed you finances. However, because there are multiple organizations out there, there are also multiple scores and reports, which can seem highly confusing.
Essentially, FICO stands for the “Fair Isaac Corporation” and the score itself means how worthy you are of credit. Your score can range from 350 to 850. Actually determining your score is incredibly complicated and the credit bureaus are very secretive about the algorithms they actually use. However, some of the things that are being looked at in particular include default history, how long your credit history is and how much debt you are currently in.
The number that is assigned to you is designed not just to determine whether or not you are worthy of credit. It also determines what type of credit you can and cannot apply for, and how much interest you will be charged on products such as loans, mortgages, credit cards and overdrafts. Essentially, when it comes to managing your financial life, the FICO score is really all that matters. No longer do lenders consider personal history and personal explanations. They simply look at your score and base their decision on that.
MyFico Prices and What You Get
MyFico, as stated, is no longer a free service. However, they do have a range of different options available so that you can choose the one that is most suitable for your personal needs. These options are:
- Fico Identity Ultimate, which is their most complete package. This costs $29.95 per month, or $329 per year.
- Fico 3 Bureau Credit Monitoring, which is the most popular package. This costs $24.95 per month, or $279 per year.
- Fico Score 3 Report View, which is the most essential package. This comes at a one-time only fee of $59.85.
For both the Identity Ultimate and 3 Bureau Credit Monitoring, you will receive the following information:
- Your current 3 bureau credit report score and FICO score, which is released once per year.
- Continuous monitoring across the three credit bureaus.
- FICO score 8 tracking across the different bureaus.
- Additional FICO score versions, which are the ones that are used in bankcard, vehicle and mortgage lending.
If you choose Identity Ultimate, you will also receive:
- Identity theft monitoring
- Round the clock full service ID restoration
The FICO Score 3 report view is a one-time only report that gives you your current FICO score, as well as your current additional FICO score version.
The two monthly subscription packages are automatically renewed each month. However, you have the right to cancel at any time, at which point no further payments will be received. It is important to be aware of this monthly payment, however, and to factor it in to your monthly budget.
However, the service really does offer more than this as well. First of all, it involves daily report monitoring. This means that if there is a change to the credit report, an alert will immediately be sent out through email and/or text message. This is vital in terms of identity theft protection as well. Furthermore, this alert includes an up to date FICO score.
Secondly, it provides a detailed score analysis. This shows which factors are currently affecting your FICO score, allowing you to see whether you can make any changes. Furthermore, it includes a personalized summary that shows the different score changes and what these mean.
Then, there is the FICO score simulator. This allows you to input data on any purchase on credit you are considering, essentially showing you whether or not you will be able to apply for that credit and showing you how, if you are successful, your FICO score will be affected. This is an incredibly beneficial tool in terms of planning your personal financial future.
Finally, the service offers truly acclaimed customer care, to which you will also receive access. This means that you can ask questions in terms of what your scores mean, how you can improve it, how you can address inaccuracies and more with ease.
The MyFico Dashboard and Website
Once you sign up to the MyFico service, you will have access to a comprehensive dashboard where you can see your three FICO scores from each of the bureaus. It also shows a complete list of recent alerts and changes to your score and report. Furthermore, it allows you to access the MyFico community, where you can speak with others just like you, as well as with industry experts about issues concerning FICO scores, personal finance and more.
The website itself is also accessible for people who have not signed up for the service. On it, information is made available in terms of how to achieve certain financial goals. The focus is particularly on credit cards, vehicle loans, mortgages and student loans. Furthermore, information has been provided in terms of what a FICO score is, why it is important and more.
What I Liked about MyFico
- The FICO Score Simulator is a great tool, as it can help you plan your immediate financial future. A lot of people see an improvement in their FICO score, immediately apply for credit and suddenly see a reduction in their score again, even if they make all their payments. Thanks to the simulator, you will be able to see exactly how each financial decision will impact you.
- The FICO score analysis is also very beneficial, as it shows you exactly why your score is the way it is at present. Perhaps you have made financial decisions in the past that could easily be improved, for instance.
- MyFico offers two different packages on a monthly subscription, so that you can get the services you personally needs. Additionally, they offer a three bureau (as well as a one bureau) one-time report if you only want to see what your current status is.
- If you sign up for one of the monthly packages, you will receive immediate alerts through email, text or even through the app. This means that you can stay on top of your score regardless of where you are.
- The service includes a competitive rate finder, so that you can always find the best possible rates from your insurance, credit cards, car loans, mortgages and so on.
- The MyFico community is very comprehensive and gives you an opportunity to speak to people from all over the world, as well as to a number of industry experts.
- The customer service offered by MyFico is out of this world and you will always be able to get help where needed.
- The MyFico website contains very useful information even if you do not sign up for the service.
- The dashboard is incredibly user friendly.
What I Didn’t Like about MyFico
- You will only receive your full credit report once a year. While you do get timely updates whenever a change is made, your actual report will only be released on a yearly basis. Hence, if you have received a lot of different alerts and you want to see what your report looks like now, you will have to purchase a one-time report on top of your general monthly subscription.
- If you forget to cancel your subscription, you will continue to pay for it every month. While there should be no reason for you to cancel your subscription at all, it is all too easy to forget about the payment coming out. It would be a real shame if your FICO score is made worse because you forget to pay for your FICO score checker, after all.
The Final Verdict On This Service
It cannot be stressed enough how important it is to be aware of your FICO score. Indeed, that one single, three digit number is the most vital piece of information that is being held about you, even more so than things such as your criminal history. It defines who you are and the services that you are able to access in your life, including things like credit cards, mortgages, car finance and more.
What MyFico does is allow you to monitor what your current score is and what that means for you. It also ensures that you are alerted if there is any change on your file, which could imply that someone is trying to steal your identity. Essentially, it will help you to build up your credit by making positive financial decisions. Doing this, in the long run, could save you tens of thousands of dollars.
Because they also offer different packages, the service really is for everybody. I wholeheartedly recommend MyFico to everybody. Staying in the dark about who you are on a financial basis is simply something that none of us can afford any more in today’s day and age. Indeed, your FICO score defines who you are, and we all need to know who we are.
Latest posts by Jason (see all)
- Scholarships For Women – Grants Specifically For Girls - June 24, 2016
- The Top 25 Millennial Personal Finance Bloggers You Should Be Following in 2017 - August 3, 2015
- Lifestyle Inflation Is A Beast You Must Tame - July 26, 2015