Americans are entitled to a free copy of their credit report once a year, but most have to pay for the number that matters most — the all-important FICO score that determines how much consumers will be charged for a
Americans are entitled to a free copy of their credit report once a year, but most have to pay for the number that matters most — the all-important FICO score that determines how much consumers will be charged for a mortgage or car loan, and if they can get one at all.
Some lenders have begun offering the FICO score free to existing customers. While that’s an improvement, the score used by 90 percent of lenders should be available to everyone at least once a year, just like credit reports.
For more than a decade, consumers have been able to obtain their credit history for free, once a year, from the three major credit bureaus — Experian, Equifax and TransUnion. (If you haven’t seen yours, go to annualcreditreport.com or call 877-322-8228.) Getting the score that is tabulated by the Fair Isaac Corp., the FICO, has a cost: either buying it from Fair Isaac (packages start at $14.95) or being an existing customer of one of the increasing number of credit card companies that provide the score on monthly statements. (That’s not really free; check the amount you pay in interest to see why.)
Fair Isaac and the credit bureaus are private, for-profit companies and as such are entitled to make money. But their rights bump up against that of the consumer, who may be denied credit based on information that is incomplete or wrong and, maddeningly, is concealed by an unfair pay wall.
Credit scores, including FICO, should be free to consumers, not just once a year, but all the time. The credit bureaus have plenty of other customers, including lenders and employers, to keep their revenue streams flowing.
