Free Credit Score Tricks and Traps

So you have your credit report from the three credit reporting agencies that you got for free and you’re still stumped as to why you’re being denied credit? What you really need is your credit score, the three-digit number lenders use to determine your credit worthiness. This number was developed by the Fair Isaac Company and is often called a FICO score. Chances are, you’ve seen advertisements from companies offering your credit score for free. Watch out! These companies play tricks on consumers and what seems free may end up costing you lots of time and money.

It’s healthy to be curious about your credit history and your credit score since it determines when and how you obtain many of the important things in your life such as a house, a job, and a car. Besides, the more information you have about your own credit history and scores, the easier it is to choose the financial options best for you. In fact, most financial experts recommend reviewing your credit report from all three credit bureaus at least once a year. These credit reports are free to consumers once a year, as well as anytime they’ve been denied credit. However, none of this information contains the consumer’s credit score. Some financial organizations provide credit scores for a fee. But who wants to pay for something they can get for free? There are companies that are offering not only free credit reports but also free credit scores. Some advertise primarily online, but others now broadcast on television using catchy jingles or customer testimonies to generate interest. Consumers are flocking to these websites, expecting to receive their credit report and credit score with no strings attached. But that is not the case.

Once a consumer signs up to receive free credit reports from these companies, often they are simultaneously signing up for credit monitoring services as well. The consumer will definitely receive their credit reports and credit score, but if they don’t cancel the credit monitoring service, they will be billed upwards of $20 on a monthly basis. There is nothing wrong with the credit monitoring service itself—it alerts you when changes are made to your credit that can positively or negatively affect your score. The problem is that the charge is unexpected and the service that was meant to be free no longer is. You may have to spend time on the phone speaking with a customer service representative trying to cancel the services and you many not be refunded any charges already incurred. Yes, you can blame the consumer for not reading the fine print, but in reality, this is a trick to deceive the consumer. The worst part is that these companies usually offer only one credit score when in actuality the three credit bureaus use different scoring methods. The difference between these scores can be as much as fifty points. So after paying a fee, you still don’t have the information you need.

So how do you get your credit score? Chances are you may have to pay a fee to obtain your credit score. If you want all three of your credit scores, you will have to visit the official FICO score website at www.myfico.com and pay a fee as well. However, there are some other ways to keep up with your credit score for free if you know where to look and how to take advantage of opportunities as they present themselves. One method is to inquire about your score anytime that your credit is checked, such as when applying to rent a home or apartment or when purchasing a car. When the company pulls your credit report, ask them what your credit score is and if they have it, they will tell you. Another method is to examine what credit services you may already have and may not be aware of. For example, Washington Mutual credit card account holders are privy to a credit score monitoring service that monitors your credit score through one credit bureau and sends the cardholder an email if the score changes for any reason. The service also informs the cardholder of the factors that led to his/her credit score and what can be done to improve it. Best of all, the service is free to account holders.

There is absolutely nothing wrong with paying to see your credit score. It is just important to know exactly what you are paying for. It is especially important to note that a credit score can fluctuate for a variety of reasons, even within the same month, depending on balances held on credit cards, credit inquiries, etc. Knowing your credit score after each of these minor fluctuations may not be vital. On the other hand, credit scores can also remain constant for years at a time, so unless you have applied for another credit card, financed a large purchase or taken out a loan, it may not be necessary to know your credit score frequently. Your effort is better spent reviewing your credit report on a regular basis to make sure all of the information is accurate and up-to-date.

The good news is that, for many companies that use credit scores as a criterion, it is not the only criteria. They will definitely look at the credit report itself to make their own judgments. Therefore, if you haven’t seen your credit scores from Transunion, Experian, or Equifax in quite a bit of time, that is not cause to fall for any “free credit score” gimmicks. Simply take your time, determine if knowing your credit score is truly needed, and assess the best means of attaining it. No one should be tricked or trapped, especially for something as important as a credit score.

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