Consumer Insights

FICO Launches Credit Score Simulator

A new tool from analytics software firm FICO will allow consumers to see how future actions may impact their credit scores.

FICO announced on Wednesday (April 13) that its enhanced simulator will provide side-by-side comparisons that enable consumers to better understand how combinations of actions may effect FICO scores.

“Because FICO scores are used in more than 90 percent of U.S. lending decisions, consumers want to better understand how their actions might affect FICO scores,” Geoff Smith, VP of consumer scores at FICO, explained in a statement.

“The newly enhanced FICO Score Simulator enables consumers to run simulations using the actual FICO Score 8 formula, as well as data from all major credit bureaus. This is an extremely easy-to-use and valuable tool for anyone who wants to understand how their financial behavior could impact their FICO scores,” Smith continued.

FICO said the simulator will provide the opportunity for consumers to experiment with various “what if” situations in order to see how their FICO scores react. Simulations will be able to run on up to 24 different types of actions, including maxing out a line of credit, mortgage refinancing, paying down a credit card balance, increasing a credit account limit and missing a bill payment.

“Our mission is to empower consumers with tools and content that help them understand their financial health, including decisions that could impact FICO scores,” Smith added. “It is important for consumers to understand their FICO scores when they are looking for credit. The FICO Score Simulator is the only tool for consumers that provides simulations of actual FICO scores.”

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