At Self, once you’re approved to be a member, you receive access to credit monitoring, credit tracking, and you have the opportunity to apply for a credit builder loan.
Credit monitoring gives you access to a VantageScore 3.0 credit score that we pull from CSID/Experian. There is no charge for you to see this credit score.
Credit tracking, as the name suggests, allows you to track how your credit score changes over time.
A credit builder loan is an installment loan that works like a savings account to help you build credit history.
We receive lots of questions from people about the credit score they see on their Self account. Sometimes they want to know if it is their 'correct' score? Other times they are confused as to why it is different from the score that they receive from credit score websites like Credit Karma and Quizzle?
The answer is you have more than just one credit score.
To better understand what this means and the score that Self provides, it’s useful for you to know a little bit about credit scores and credit scoring algorithms.
What is a Credit Score?
A credit score is a number between 300–850. This number is calculated by putting all of the information in your credit report into a series of secret, magical math equations (called “credit risk assessment algorithms”).
There are many different types of credit risk assessment algorithms that have been developed by Credit Reporting Agencies (credit bureaus) and software companies like FICO.
Each algorithm weighs components from your credit report (like payment history) differently, which is why you can have varying scores depending on which Credit Reporting Agency or software company is computing your score.
What is a FICO Score?
FICO scores are credit scores that are computed by a company called FICO using their own algorithm.
The score is calculated using five factors: payment history (35% of overall score), amounts owed (30%), length of credit history (15%), types of credit used (10%) and new credit (10%).
FICO gets the information to compute your score from the three major Credit Reporting Agencies’ (CRA)— Experian, Equifax, TransUnion — credit reports.
Each one of these CRAs obtains information about you from creditors — such as banks, credit card issuers, and finance companies. They can also get your information from public records.
Just like how there are three credit reports for you (one from each CRA), there are also three FICO scores (one from each credit bureau’s information).
About 90% of lenders pull your credit score from FICO to make an important financial decision about you.
Pulling a FICO scores costs money and has a negative impact on your score when someone other than yourself pulls it like a lender or employer.
What is this free score from Self?
The free score from Self is not calculated by FICO, so while it’s not a false score, it’s not the score that most lenders will use to judge whether or not you’re credit worthy.
The credit score that Self uses is VantageScore 3.0 credit score from Experian/CSID. Experian/CSID developed this score to help people judge their overall credit health. These scores are sometimes 20–30 points below or above your FICO credit score, because VantageScore 3.0 credit score uses a different scoring algorithm than FICO.
The best thing about the score you monitor and track in your Self account is that it does not cost you anything to see it and gives you a ballpark idea of what lenders will see when they pull your credit score. Also, when your VantageScore 3.0 credit score changes, then that signifies that your FICO score has also changed.
FAQs
The free score from Self is not calculated by FICO, so while it's not a false score, it's not the score that most lenders will use to judge whether or not you're credit worthy. The credit score that Self uses is VantageScore 3.0 credit score from Experian/CSID.
What's more important a credit score or a FICO score? ›
"For years, there has been a lot of confusion among consumers over which credit scores matter. While there are many types of credit scores, FICO Scores matter the most because the majority of lenders use these scores to decide whether to approve loan applicants and at what interest rates."
Why is my credit score different on self? ›
At Self, we report your info to the credit bureaus once a month. That said, each credit bureau and credit monitoring site has different timelines for processing updates. Some credit monitoring sites may only pull from 1 or 2 credit bureaus too, which is why your info may look different depending on where you check it.
What credit score does self use? ›
Some lenders even use their own scoring models. So if you see one score on your CreditWise and a different score through Self, for example, that's why. While both of these sites use a VantageScore model, CreditWise pulls from TransUnion, while Self pulls credit score data from Experian.
How accurate are free credit scores? ›
Getting an annual credit report for free can be safe if you are careful about the particular website from which you get it. But you should be careful, since pulling your credit many times over a short period can actually worsen your credit score.
Why is my credit score and FICO score so different? ›
Additionally, FICO® Scores are based on credit report data from a particular consumer reporting agency, so differences in your credit reports between credit reporting agencies may create differences in your FICO® Scores.
Do banks use FICO score vs credit score? ›
Key Takeaways. A credit score is a three-digit number that measures your financial health and how well you manage credit and debt. FICO scores are a specific type of score that lenders can use when making borrowing decisions. The FICO credit scoring system is the most widely used credit score.
How accurate is my self-credit score? ›
The free score from Self is not calculated by FICO, so while it's not a false score, it's not the score that most lenders will use to judge whether or not you're credit worthy. The credit score that Self uses is VantageScore 3.0 credit score from Experian/CSID.
How fast does self improve credit? ›
Self reports your payments to the three major credit bureaus, Equifax, Experian and TransUnion. Any late payments will hurt the credit you are trying to build. After about six months, your repayment activity should generate a FICO score if you didn't already have one; your VantageScore can be generated sooner.
What is the most accurate credit score? ›
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.
But there are a few reasons your credit score may drop when you first open your Self Credit Builder Account. First, it could be that the Credit Builder Account with the full balance due has reported to the credit bureaus, but your first payment (which reduces the total balance) has not reported yet.
Is self good for bad credit? ›
Key takeaways. The Self – Credit Builder Account with Secured Visa® Credit Card is a good tool for building credit when you have bad or no credit history and don't yet have enough money for a security deposit, but it's not for everyone.
Can I pay off my self-account early? ›
If you're wondering, “can I pay off my Self account early?” the short answer is yes — but you may miss out on some things if you do.
What is the best site for free credit scores? ›
You can start by going to the three major credit bureaus, Equifax, Experian, and TransUnion first by logging on to AnnualCreditReport.com to check your report for free. Each agency gives you access to your report once every 12 months.
Does pulling a free credit report lower your score? ›
No, requesting your credit report does not hurt your credit score. You can check your credit at no charge at annualcreditreport.com . You can review your credit report online for free once a week, from each of the three nationwide consumer reporting companies (Equifax, Experian, and TransUnion).
Is it OK to get free credit score? ›
Can you check your credit score for free? You can get your Experian Credit Score without paying a penny, by signing up for a free Experian account. Your free score will be updated every 30 days if you log in. You can check your credit score as often as you like – checking it won't harm it.
Is your FICO score the most accurate credit score? ›
Keep in mind that these different sources will likely use the FICO scoring model, VantageScore or both to calculate your credit scores. While FICO score and VantageScore differ in how they weigh the factors discussed above, it's important to note that one model is not necessarily more accurate than the other.
Should I go by my FICO score or Credit Karma? ›
If you plan on applying for credit, make sure to check your FICO Score since there's a good chance lenders will use it to determine your creditworthiness. FICO Scores are used in over 90% of U.S. lending decisions.
Do you really need a FICO score? ›
Your FICO credit score is the key to a world of financial products. Before applying for a loan or credit card, find out if your score is high enough and make sure the information being sent to credit reporting agencies is accurate.
Does FICO determine your credit score? ›
The Fair Issac Corporation issues FICO scores, but the exact formula for calculating the scores is ambiguous. Equifax, Experian, and TransUnion plug their data into the FICO formula to produce information about a person's credit.
