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Looking Toward the Future: Are Credit Score Simulators Accurate?

Looking Toward the Future: Are Credit Score Simulators Accurate?

The purpose of a credit score simulator it to estimate how specific financial decisions will help or hurt your credit score. Some of the reasons you may use a simulator include to find out what will happen if you open a new credit card, how adding a mortgage or car loan may impact your score, and how paying your balances down may be beneficial.

While the benefits sound appealing, you may wonder, are credit score simulators accurate? This is a good question. Keep reading to learn more about credit score simulators, along with what factors go into creating your credit score in the first place.  

You can also learn more about the newest tool available to help you boost your credit rating quickly.

The Credit Score Simulator

Credit scores are as individual as your fingerprints. The same financial action will have different effects on each person’s scores. This depends on the specific information in your credit report.

The effects could also vary depending on what credit scoring company – VantageScore or FICO – that’s providing the score.  Also understand that there are various versions of each of these types of scores as well.

With a simulator, you get an idea of what you should expect before you take any action. Remember, though, this is just an estimate. It may not reflect exactly what is going to happen to your scores when you make a move.

What to Expect When Using This Tool?

As mentioned before, the results provided by a credit score simulator are going to be estimates, rather than predictions. The simulator can help you explore the possible impact of a specific action. However, it can’t provide a guarantee that the results are going to be exactly the same in a real-world situation.

There are several factors, such as the length of your credit history, the different types of credit accounts you have, your credit limits, and the history of on-time payments that can influence how a new transaction may affect your scores.

For example, if you have to close a credit card and have just one or two credit accounts, it may damage your score, how if you have several accounts, it may not cause any problems.

The credit simulator will reflect what will occur in real life. Usually, the higher your score is, the more points you are bound to lose when something bad happens, and the longer it will take for the scores to recover. The good news is, the damage to your score isn’t permanent and you can take steps to restore your credit.

Factors That Affect Your Credit Score

Your credit rating is determined by several factors. This includes if you pay your bills on time and how long you have been using credit. Understanding the factors that affect your credit score helps you plan the most effective way to build your credit or to protect it.

Companies that score your credit will calculate your scores from the data in your credit report. While they haven’t ever revealed their precise formulas, they have shared the basic methods used to calculate your score.

You may wonder why you should care.

This is because your credit is going to be a key element in other parts of your life. If you can get a car loan or credit card, and what interest rate you receive, are all impacted by your credit rating. So is your ability to purchase a house or even rent an apartment.

Tips for Improving Your Credit Quickly

Now that you know what goes into your credit score and what a credit simulator does, you may wonder what steps you can take to improve your credit rating. After all, you need to know what to put in the credit simulator, right?

The fact is, building your credit can make your life much easier and help you to qualify for credit cards and loans. You may also get lower interest rates, better insurance rates, and a chance to skip the utility deposits.

For example, if you have a score of 620, this is considered “bad credit.” If you could increase it to 720, then you’re at the bottom of the “excellent” range. At this point, lenders are going to see you in a different light.

Also, with good credit, you are going to have options you don’t have right now.

Some steps you can take to improve your credit score include:

If you want better credit, taking these steps is going to put you on the path to achieve it.

Are Credit Score Simulators Accurate: Now You Know

When it comes to credit score simulators, there’s an array of things you need to know. While that’s true, now you know the answer to the question, are credit simulators accurate? This puts you in the right position to take the steps necessary to ensure you know what is going on with your credit score.

To help give your score a boost fast, you can also add positive history to your credit report by piggybacking credit tradelines.  Check out our new credit tradelines simulator designed to help you select the right tradelines for your situation. With this, you can find the best tradelines to help you boost your score quickly based on the factors that have determined your score.

Using our tool is simple. All you have to do is click the “BoostMyScore” button and then answer the questions.  If you need more assistance, you can contact one of our credit specialists at BoostMyScore.  Not all tradeline supply companies are created equal, so be sure to check out the over 12 years of reviews. BoostMyScore has helped thousands of clients reach their financial dreams!

Bill Airy

About the Author:

Bill Airy is the CEO and Founder of BoostMyScore. For over 12 years he has helped American consumers get a second chance at a better financial life by helping them to improve their credit score. He regularly publishes helpful content on this Blog to educate others about Credit Scores and best practices when trying to improve them.

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BoostMyScore Team