FICO Mortgage Score Simulator Lets Borrowers Preview Credit Impact Before Loan Applications

A division of FICO has launched a mortgage score simulator tool for consumers. The aim of this tool from myFICO is to assist consumers in preparing their financial health prior to applying for a mortgage. It is available to myFICO premier subscribers who pay $39.95 a month for their subscriptions.

The mortgage score simulator from FICO allows consumers to simulate how various credit actions would affect different FICO score versions used in mortgage lending. These actions include paying down credit card balances, paying all bills on time, and applying for new credit. 

Working with the simulator, consumers are able to understand the trade-offs of various credit decisions without impacting their actual credit scores, according to a press release from FICO.

Small Credit Changes Make a Difference

FICO said even small changes in a consumer’s credit profile will influence whether a consumer is approved for a mortgage and the interest rate a consumer will pay on a mortgage. 

Buying a home is one of the most important financial decisions a consumer will make, said Geoff Smith, Vice President and General Manager of Consumer Scores at FICO.  “And we realize that FICO Scores play a big role in that journey.”

“myFICO’s new simulator gives our customers a window into how potential credit behaviors can influence the credit scores lenders rely on most in mortgage decisioning, empowering people to take proactive steps toward their homeownership goals,” he said.

Equifax Launches Interactive Credit Score Planner

Equifax has made an interactive credit score planner called Optimal Plan available through its myEquifax mobile app for all Equifax Core Credit and premium subscribers and is doing so free of charge, according to a press release from Equifax. 

The interactive planner integrates a consumer’s Equifax profile with tasks the consumer can do in the upcoming 30 days to improve their VantageScore 3.0 credit score.

In addition to 30-day action plans, Equifax customers using Optimal Path also receive progress reports, reminders to stay on track with goals, and notices of the milestones they reach.  

“The Equifax Cloud provides the robust foundation needed to leverage our patented EFX.AI capabilities and seamlessly integrate Optimal Path into the myEquifax mobile app,” said Aparna Shah, who leads the Direct to Consumer Business at Equifax. 

“We ultimately want to empower consumers to take more control over their financial journey and help them live their financial best. Offering Optimal Path for free to U.S. consumers is an important step toward that goal.”

Consumer Credit Tools Help Lenders

Interactive credit planners and credit simulators help consumers get a handle on their credit before they apply for loans and mortgages but they also help lenders. Consumers who are better prepared for their borrowing are less likely to fall behind on payments, a big plus for lenders. 

This is especially true of mortgages, the biggest purchase many people will ever make. Knowing the ins and outs of credit before agreeing to take on mortgage payments is a big advantage for consumers and for the mortgage lenders making the loans. 

The Bottom Line

Consumers with a myFICO premier subscription have access to a mortgage score simulator that allows them to simulate how different credit decisions would affect their FICO scores when applying for a mortgage. 

Over at Equifax, the company is offering a free, interactive credit score planner through its myEquifax mobile app. The aim is to offer consumer tasks that when completed would improve their Vantage 3.0 credit scores. The planner is available to all Equifax Core Credit and premium subscribers.