NEW YORK — Millions more people will have free access to their FICO credit score this year. That's good news for consumers, since the number is widely used by lenders to check potential borrowers' financial health.
Bank of America Corp., JPMorgan Chase & Co. and Ally Financial Inc. said Monday that they will offer the score free to some of its customers this year. Discover Financial Services already offers a free FICO score to its credit card customers and Citigroup Inc. will offer it to most of its Citi-brand credit card customers this month.
The White House announced the new agreements Monday, saying that a free credit score was a tool to help people uncover identity theft.
Here's what you need to know about credit scores and the new deals:
Q: WHAT IS A FICO SCORE?
A: Fair Isaac Corp., the company behind FICO scores, says more than 90 percent of credit decisions are made based on them. When you apply for a new credit card, mortgage or auto loan, those lenders are likely to look at a FICO score to see if the borrower is reliable. People with higher scores — they range between 300 and 850 — may be offered lower interest rates on mortgages and other loans. Those with low scores may not be able to borrow money or may not be approved for a new credit card. Missing payments and other factors can lower a score.
Q: HOW DO YOU KNOW YOUR FICO SCORE?
A: You can pay to see your FICO score, usually $20 each time. However, over the past two years credit card issuers including Citi, Discover, Barclaycard and First Bankcard have allowed customers access to their FICO scores at no charge.
