New FICO Tool Shows How Financial Decisions Would Impact Your Credit Score
A new tool from FICO lets consumers test how different actions will impact their credit scores. Known as the FICO Score Simulator, this program allows users to input various financial activities, and then see what their resulting scores would be.
The tool utilizes data from all three credit bureaus to let consumers see how their scores will compare before and after different actions. These activities range from making a late payment on a bill to refinancing a home loan. There are 24 options to choose from, and users can also select more than one at a time to see how combinations of activities will influence their scores.
In addition to seeing the impact on their scores, FICO provides a detailed explanation as to why the scores are expected to change. In the case of a multi-action scenario, consumers could see why one action may increase their score as another decreases their score (such as paying of the balance on a credit card vs. making a late payment on an account).
According to the organization, FICO scores are used for “more than 90 percent of US lending decisions,” making a tool like this very useful for consumers looking to improve their credit scores.