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Finance, Credit and Loan Information

The Lowdown on Those Free Credit Scores

The Fair and Accurate Credit Transaction Act of 2003 provided individuals with valuable rights to the credit information that companies keep on them, but did you know the credit score provided to you may be different from the one provided to lenders?

The first thing you should know is that you have a right to see your credit report once annually without cost. To receive your free credit report you can visit www.AnnualCreditReport.com. This report will contain important information that may affect your credit score.

While your credit report can be obtained for free, your credit score will cost you money, except if you have been denied a loan on the basis of your credit score, in which case you may obtain your credit score for free.

Your credit score is a numerical representation of your creditworthiness, which takes into account past and current credit activities, including any late payments, judgments, liens, bankruptcies and foreclosures.

When you see an offer for getting your free credit score, it may be a marketing-driven incentive to get you to sign up for a fee-based credit monitoring service. The score may be only available at no cost if you agree to sign up for a trial subscription and don’t cancel prior to the end of that trial period.

The Dirty Little Secret of Credit Scores

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