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John Adams: New credit score options
When it comes to renting an apartment or applying for a home loan, most people know their credit report plays a major role.
ATLANTA - When it comes to renting an apartment or applying for a home loan, most people know their credit report plays a major role. Until now, FICO credit scores have been the gold standard, but new competition may benefit consumers. Fox 5 Real Estate expert John Adams explains what this change means.
For more than 30 years, Fair Isaac & Company’s three-digit FICO score has determined borrowing power for millions of Americans. A higher score meant lower interest rates and better loan terms, while a lower score could cost thousands in added interest.
What a FICO Credit Score Is
A FICO score, ranging from 300 to 850, works as a financial report card. It measures how likely a borrower is to repay debt. Payment history makes up the largest portion of the score, followed by credit utilization, length of credit history, new credit activity, and credit mix.
Why It’s Important: FICO vs. VantageScore
While FICO has long dominated the market, a newer model called VantageScore is now gaining traction. Developed by the three major credit bureaus, VantageScore was designed to help people with little or no credit history, including young adults and those who primarily pay rent and utilities.
In a major shift, federal housing programs such as FHA and VA loans can now consider VantageScore alongside FICO. That means more first-time buyers and veterans may qualify for mortgages who previously could not.
"FICO now has some competition, and that’s good news for consumers," Adams said.
The Bottom Line: Improving Your Score
Experts recommend regularly checking your credit score through free resources offered by banks or credit services. Paying bills on time, keeping credit card balances low, and limiting new accounts are the fastest ways to boost scores.
Free tools such as Credit Karma and Self.inc can help consumers monitor their credit and build positive payment history.
The Takeaway
If your FICO score has been a roadblock, now is the time to act. With VantageScore now accepted for some home loans, consumers—especially veterans and first-time buyers—have new opportunities.
How to Check Your VantageScore for Free
- VantageScore’s Official Page: A curated list of providers offering free VantageScore updates.
- Chase Credit Journey: Weekly Experian-powered updates, no account required.
- Credit Karma: Free weekly VantageScore 3.0 updates from TransUnion and Equifax.
- Credit Sesame: Monthly updates with free credit monitoring tools.
- TransUnion Subscription Service: Daily reports and personalized recommendations.
- American Express MyCredit Guide: Free weekly TransUnion VantageScore access.
How to Check Your FICO Score for Free
- myFICO.com: Monthly Equifax-based FICO Score access.
- Experian: Instant access to FICO Score 8 with factor breakdown.
- Discover Credit Scorecard: Free Experian-powered FICO score every 30 days.
- Capital One CreditWise & Experian Boost: Free FICO scores plus credit-building tools.
- Major Card Issuers: Many banks provide free FICO scores through online portals.
Fox 5 will also host a Facebook Live Chat today for 60 minutes, where Adams will answer questions about credit scores and any real estate-related topic.