How to Get a Free Credit Score
Keeping up with your finances is important. Unfortunately, a free credit score is not part of the free credit reports available to consumers once per year. A credit score is a three digit figure calculated using an algorithm based on your credit report. Credit scores are used by financial institutions to calculate risk when making decisions on lending. There are several of companies that offer credit reporting agencies. You can pay them to generate your credit score, but there are also several ways to get a free credit score.
The easiest way to get a free credit score is online. The internet provides a variety of options. There are numerous websites claiming to offer free credit scores and caution is key on the internet. Do not submit your financial details to sketchy sites as it may cost you a lot more than needed to buy a credit score. This article explain the safest and easiest methods to getting a free credit score.
Some websites instead offer a quid pro quo deal where you offer a service or incentive. For example, give the site right to your information or perform some online task in exchange for your credit score report.
Here is a list of websites that offer safe and reliable credit score reports online:
- Credit sesame – updates its free credit scores monthly. Creates a free report profile (not the same as credit report). Offers free credit monitoring by notifying you on changes in your credit report.
- Credit Karma – updates credit scores weekly. Offers free credit monitoring and a free credit simulator. These show the effect of various actions such as acquiring a new credit card on your credit score.
- Quizzle – offers free credit scores and reports every three months.
- com – offers free credit scores and a credit report card
Advantages of free online credit scores
Unlike buying a credit score, free scores are updated regularly sometimes weekly. This allows you to stay up to date and notice any changes in your credit report.
One can sign up for multiple credit scoring websites online then compare the results. This allows one to get a better sense of their credit situation.
Disadvantages of free online credit scores
There is potential danger of revealing your information to dubious websites. This is because it can expose you to identity theft.
The credibility of some online credit scores cannot be verified.
Credit Card/Bank Statement
The Consumer Financial Protection Bureau has been successful in engaging credit card companies and banks to provide free credit reports and scores for their customers. Credit scores can be found on the monthly statements of most major credit companies. These include, Walmart Card, Barclay Card, Capital One Card, Discover Card and First Bankcard
Most banks including those that have the free service are not likely to advertise. Ensure that you call your bank and find out if they offer free credit evaluation. If they do, you are likely to get some free advice as well instead a cold hard figure.
Advantages of credit scores from bank
Credit scores from the bank or credit card companies are exact and can be relied on.
Banks also offer financial advice and explain the options available to someone.
Non Profit Counselor
Credit giant FICO revealed that it will allow non-profit counselors to provide free credit scores to the public. Counselors are also able to review your general finances and credit history. This helps them advice you on matters like loans.
Advantages of nonprofit counselor
Credit score provided is reliable.
Financial opportunities can be accessed by nonprofit counselors that may not be advertised.
When getting a free credit score it is important to know certain things:
- Your credit score is not fixed. It keeps changing and this is why a date on the disclosure notice reveals when the score was calculated. When you get your free credit score after, it won’t remain static for long. Factors (like bill paying history) that are considered when calculating credit scores are dynamic and so is your credit score.
- There are different brands that widely offer credit scores. The market is shared between three credit reporting agencies; most popular is the FICO score with TransUnion and Experian. Your free credit score will likely come from one of these companies, though they won’t discuss the information.