Detail Analysis of Credit Sesame and Credit Score
Credit Sesame is a credit and loan company that gives its members free access to credit for monitoring, credit reports and identity protection tools.
Their mission is to help consumers benefit from their credit health and create better opportunities to meet their personal and family requirements. Strong credit health is always crucial for financial health and impacts every aspect related to loans; securing approval for your car loan, home loan or determining your insurance rates.
Credit Sesame’s approach toward personal credit management democratizes access to credit information and gifts consumers with personal guidelines towards credit and financial assistance.
Aim of Credit Sesame is to empower people and take charge of their finance, credit, and loans to achieve their financial goals. And for this purpose, we offer a total solution; credit score and monitoring, identity theft protection and saving recommendations all for free.
The Business Model of Credit Sesame
Credit sesame is entitled to receiving revenues from partners when a member with the company acts on their recommendation made towards a product which would be new credit cards or loans.
Revenue from the brand is generated from its premium subscription business as well as by hosting targeted advertising from third parties. It also initiates loans to help billion of dollars in consumer debt.
In August 2019, the company completed an additional round of funding totaling $ 43 million. It has already helped millions of clients towards improving their credit scores, increased their approval on, lower the cost of credit and save money.
Besides offering facilities of free credit score and credit report, Credit Sesame also renders free credit monitoring services and free identity fraud protection services. This way it renders a more comprehensive look at clients’ credit score so that lender can take immediate action if there is some fraudulent activity involved.
Credit sesame is funded by leading venture capital firms’ strategic investors including renowned names such as Menlo Ventures, Inventus Capital, IA Capital Groups, Globalspan Capital, Symantec, Capital One Ventures, Stanford University and many more.
How Does Credit Sesame Work?
You have to sign up for a free Credit Sesame account to avail the benefits of bank-level analytics. These are developed with scientists from UC Berkeley and Stanford.
The information of clients is encrypted and our security practices are approved by Verisign.
We understand the importance of a good credit score for your financial health and therefore credit score checking is always free at Credit Sesame.
A Free Finance Management Tool
As a free personal finance management tool, credit sales make specializes in tracking and monitoring people’s credit score, Additionally, the individual can sign up for the service free of cost without any need for a credit card. All they have to do is fill their social security number on our web portal after entering your email address, to get started.
We will get your credit score instantly via Transunion, pulling your credit information. And without any commitments or trial, we help you get credit report and score.
In case you decide you are not satisfied with our free credit scores, you can cancel your registration at any point freely with no questions asked.
Under our free services, we give credit score once a month. In case you want daily score, you can switch over to over premium account facility.
Credit Monitoring Services
Besides free credit score, we also monitor your credit for your benefit by keeping track of your credit report from Transunion. When changes are made in your credit report, it will be notified to you for those changes inclusive of large purchases, credit inquiries, and new account opening.
Even if there are no changes, credit sesame keeps declined updated with their credit score once a month to show their progress over the period. Also renders personalized recommendation regarding saving money, home loans, credit cards, car loans and more.
Our dedicated staff makes in-depth analysis and offers to customize recommendations to the client regarding which credit cards the best and which loan they qualify for, based on their credit score.
For instance, if you have been overpaying fees and interest regarding your home loan, after analyzing, Credit Sesame will give you a recommendation on how to lower your payments so that you can save your money.
A pleasurable bundle of services isn’t it!?
Detail Regarding Credit Score From Credit Sesame
A Credit score is a three-digit score ranging between 300- 850. This score directly influences the credit that would be available to you as well as various terms that you are lender may offer. In other words, the credit score is a very crucial aspect of your over on credit health.
When you apply for credit purchase credit card loan for a student loan, the lender wants to assure what are the risk would be assuming by lending you the money. Lender orders for a copy of the credit report. Sometimes they also buy credit score copy which is based on the information contained in your credit report. Credit score as a quick snapshot for summarizing your credit risk and gives an accurate picture of your credit report at a particular point of time.
Credit Sesame offers your credit score ranging from 300 being the poorest and 800 being the highest credit score.
- Poor Credit Score
Its range is 300 – 650 and it lowers your chance of getting approval for any credit. Although you may qualify for loans like FHA that seek minimum credit score of 580, but such a home loan has its restrictions. Poor credit score makes it difficult to apply even for a credit card for getting a mortgage. In case you get approved for credit, the rate of interest would be considerably high.
- Fair Credit Score
This credit score ranges between 640- 680, and makes you quite better than the poor or bad credit score. You may initiate applying for loans or credit cards but your score needs to be improved for more options availability.
- Good Credit Score
Credit scope ranging between 680- 720, is good as it renders several perks while applying for credit. Although it’s a good symptom, it is also an indicator that you should be consistent in your bill payments to raise your credit score to 850. Additionally, you can start applying for new credit.
- Excellent Credit Score
Based on your payment history, credit card utilization, credit age, and inquiry, if your credit score is 850, it is an excellent sign. You would render several options for the best loan rates, credit card offers, etc.
Looking at your credit report, you can make out what is your credit score and what are your chances of securing the loan.
Factors Affecting Credit Score
Listed below are five factors that affect your credit score:-
- Payment History
This is one of the single largest factors determining your credit score. It is affected by your ability to make regular monthly payments on time, every time.
- credit utilization
This is another biggest determinant for credit score. Credit utilization is how much of your credit limit you are utilization through your balance at any given time. It accounts for 30% of your total credit score. But, keeping it low is ideal. The credit card balance under 30% is best.
But the best credit score often has credit utilization below 10%.
- Credit Age
The third most important factor of the total credit score is credit age; how long you have had credit. The longer credit age is better for lenders. The average credit age can be determined in your credit report.
- Account Mix Of Different Types Of Credits
Lenders prefer a mix of credits that include credit cards, student loans, car loans, and home loans. If you have a car loan on your credit profile, consider applying for a secure credit card.
- Credit Inquiry
The higher your credit inquires, the lower your credit score can be. The number of hard inquires into credit score negatively affects it. Limit applications to only those necessary or strategically smart.
Steps to Fix Your Credit Score
While trying to improve your credit score, follow our key steps and stick to the routine suggested as fixing your credit is relatively easy with it.
Making on-time payments has significant impact on lender as its impact your score, especially in case if you’re current score is lesser than stellar. (Witness 80 points increase in 12 months by making on-time payments in your poor credit score).
- Sign Up for a Secured Credit Card
A secured credit card is easy to qualify for as these accounts require a deposit that acts as a credit limit for your card. In case you miss a payment, the lender simply withdraws the due amount from your deposit. This kind of payment history plays major role in credit score. The longer you use a secure credit card, your credit score keeps on improving.
- Getting of Credit Builder Loan
Another way of fixing your credit score is getting a Credit builder loan in which the bank set aside a specified amount into an account. You make a payment on this loan and at the end of the specified term, the money is yours.
- Becoming an Authorized User
An authorized user of an account is one who enters into an association with someone with established good credit. Improve your credit score as the lesson risk is assumed on the part of the lender. Responsibility of your debt is on the person whose account you are authorized on. When you become an authorized user of someone’s account, it signifies huge trust in you. So, be sure to use this strategy wisely.
- Get a Co-signer
Getting sign up for a loan for a credit card is similar to repairing your credit score. By co-signing the co-signer agrees to be ultimately responsible for your debt, just in case you fail to make your payment on time.
It is like becoming an authorized user on someone’s account. Show me sure to use this responsibility seriously as default on your debt will affect co-signer’s credit score too.
Credit Sesame and Other Competitors
We have many competitors rendering free credit monitoring services suggest Credit Karma, Credit.com, WalletHub, Quizzle. Some companies namely Discover, Capital One, Barclay, etc offer free credit score services.
- Credit sesame vs. Quizzle
Quizzle offers credit monitoring services for free and does not require the user to use their credit cards to join. Just like Credit Sesame, you get a credit scope for free but for only every 3 months. It also renders recommendations on home loans and credit cards against the compensation they received from companies.
But with Credit Sesame, you get free credit score every month and also get a free identity theft protection for free.
- Credit Sesame vs. Credit Karma
Credit Karma is slightly different from credit Sesame although it provides free credit scores and reports but both from Transunion and Equifax. Like Credit Sesame, you need not provide the credit card to sign up here. Credit Karma provides a detailed analysis of your credit report and also suggests how actions; adding a new credit card making payment against debt that can increase your credit score.
Credit Karma also recommends financial products such as personal loans, home loans, credit cards, etc. based on your credit profile.
Credit Sesame’s Free Identity Theft Protection
Identity theft refers to the situation when someone uses your personal information such as social security number, name and address and uses this information as their own. This enables them to use your information for making last purchased, apply for new credit card and open other accounts. If your social security number is stolen, it poses a great threat to your financial health. It deters tells you from taking a mortgage, credit card or any other credit.
For this purpose, Credit Sesame offers free identity theft protection. Additionally, there is a $50k theft insurance which is also 100% free from the company.
Just login to your account and turn on the free credit monitoring feature and you will get free assistance to get in touch with identity Restoration specialist in case you come up with an identity theft issue.
Credit Sesame is present to protect your financial standing, find the best home loan or keeping a check on your credit and debt score.
We help you get graded on important credit factors along with your free score, updated every month.
We help understand your best next steps with a free credit strategy rendering personalized tips on how to manage your credits score and goals, according to your credit profile and goals.
Credit Sesame helps to know your best options on credit card and loan debt. With Credit Sesame, we will help you know if you are overpaying on credit card and loan interest. We help you save money.
Security at Credit Sesame
At Credit Sesame, Clients security is the main aim.
- Here firewalls, 128- bit SSL encryption and 256- bit AES encryption is used as per industry standard mechanism of encryption (standards used for banks and government).
- Additionally, Credit Sesame doesn’t sell information to third parties for marketing.
- Server located in a secure facility with 24 hours monitoring and surveillance.