In this housing market, many homeowners are reassessing their goals–with home renovations and debt consolidation topping their to-do lists.
And for homeowners tapping their home's available equity to fund these goals, checking in on their credit score and seeing if they can give it a push in the right direction is step one.
Credit score, FICOⓇ score: what's the diff?
Your credit score tells lenders how likely you are to repay borrowed money based on your personal credit history: and this score can ensure being approved—or secure you a lower rate.
The fact is, “credit score” and “FICO score” are often used interchangeably. Yes, both represent how well you’ve managed finances. And while FICO is a brand of “credit score,” its three-digit credit scoring system is one of the most commonly used in the U.S.
TIP: Before you apply for any loan, it's good idea to see your score and explore ways to increase it.
Increasing your credit score (aka FICO) could help you in a few ways. In addition to a higher FICO score helping out with loan approval, it could also mean saving money over the life of a loan, because a higher FICO score may qualify you for a lower interest rate–and a lower monthly payment.
But the fact is, increasing your credit score is tough to do overnight, so how can you accelerate the process? Many homeowners are turning to this life hack...
How can I quickly increase my credit score?
To add a few points to your FICO score quickly, Experian Boost™ is a great option. Why? Because Experian Boost is fast, free and allows you to build credit with bills that don’t typically get included in credit reports, such as:
• Utility bills
• Phone bills
• Cable bills
• Streaming services
Since launching in 2019, Experian Boost has helped more than four million people enhance their FICO scores by over 50 million points. On average, people increased their score by 19 points.
Will boosting my credit score help me access cash?
In addition to approval odds and lower rates and monthly payments, a higher FICO could also mean being able to access more cash from your available equity When it comes to Home Equity or HELOC loans,
Want an estimate of how much cash you may be able to access from your home? Visit our instant equity estimator. It only takes a moment to see results.
And if you have more questions or want to speak to a home equity expert, let us know and we can help get you the answers you need so you can make an informed decision.