Your credit score is an important number. It reflects your ability to make loan repayments in time. If you have ever borrowed money, you will have a credit score and each time you apply for a loan, your credit score will be checked. Lenders make a lending decision based on your credit score. A high credit score means you have the ability to make timely payment of dues and a poor credit score shows that you are a defaulter.
The definition of an ideal credit score will depend on the type of loan you seek and the lender you approach. Lenders have varying credit score threshold. Common scores range between 300-850.
Several credit card issuing companies offer free credit score to the cardholders. However, Credit Wise Capital One is one step ahead. It offers free credit scores to all users. Anybody can create an account on the website or use the app store to download the app for no cost. Capital One is the first one to make free scores accessible to the public.
There has been huge engagement for the tool. Capital One aims to help people when it comes to credit and strives to help them understand, and monitor their score. Previously, the Consumer Financial Protection Bureau recommended that the top companies provide free credit scores to the customers.
Does it affect your credit score?
This is an obvious concern amongst users. Generally, whenever you apply for a credit card or a new loan, your credit score will be checked. Known as an inquiry, it will be recorded on the credit report and may have an impact on the credit score. This means if you apply for credit time and again, within a short period, the credit score might go down significantly.
However, Capital One CreditWise does not affect your credit score. In credit-terms, checking your credit is known as a soft pull and a lender checking your score is known as hard pull. Your credit score will remain the same, irrespective of the number of times you check it. It will give you an insight into exactly how and what affects the score. CreditWise will result in a soft pull. Use Capital One CreditWise without any doubt or fear because it will not affect the score.
Features offered by Credit Wise Capital One
Capital One Credit Wise is very different from other credit monitoring products. It has several features that make it a convenient, easy-to-use tool for users. Below-mentioned are features of Capital One CreditWise.
- Credit score: The TransUnion VantageScore 3.0
- Notifications: You will receive an alert when your score changes.
- Simulator: There is a customizable tool which allows you to see how a financial decision can impact the TransUnion VantageScore. It will help make better financial decisions.
- Score Summary: This feature will break down the score as per key factors like on time payment and amount of credit used. It will rate you on each and will show how the total score was derived.
- History: The history feature will show the movement of the score on the line graph.
- Availability: Individuals above the age of 18 with a valid Social Security number can use the app.
What sets it apart?
In comparison to other credit monitoring websites, CreditWise has depth. It will show a single credit score, from TransUnion but the credit simulator is highly comprehensive. The simulator allows you to pick any combination out of the 17 credit-influencing events. Hence, you can make better decisions. You can see what can happen to the score in case you cancel a card of if you cancel a card and charge $500 to a different account. The simulator is very customizable and it easy to use and understand. You can instantly see how your decision will affect your credit. Calculation of credit score is easy to understand to everyone.
Capital One’s approach to make free credit scores available to all is a very smooth marketing move. It is a win-win for both the parties, Capital One gains from the change as it will be able to get more traffic to the site, and customers will be able to get their score for free. Customers receive an update about their score and any changes to it through the notifications. It aids better decision making and will make it easier for you to sign up for a credit card or apply for a loan.
If you want to make decisions based on how it might affect the credit score, CreditWise is worth checking out. The best feature is that it will not affect the score, it is available for free and will offer detailed insights into how the score was built and how a decision can change it.