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Free Scores Impossible

By Brian Anderson
Published: Friday, August 6th, 2010

10Free credit scores. Are there such things?

“Free” credit scores are available in many credit information sites, but not the “real” free credit scores. The lawmakers of America have recently approved the Restoring American Financial Stability Act of 2010 that allows customers to gain access to their credit scores for free. However the access to those scores involves certain conditions. The customers must be either denied of a loan or insurance or had their interest and insurance rates increased to enable them to check their credit scores. The bill is still waiting to be signed to a law.

People claim that they can see websites offering them true credit scores directly from the credit bureaus. That got other people confused, especially the existing credit card holders. If they can access their credit reports annually for free, do their credit scores go with the package? The question may be linked to the 2003 law that includes a text about providing customers credit reports every twelve months. The government had made it clear that credit reports not credit scores are the ones being offered for free.

The “free” scores are said to be money-boosting schemes from credit information companies. The freebies banner of the sites catch the customers’ attention and can hypnotize them to click the “Get Your Score For Free” button. The banner is actually a mask that hides a real agenda. The scores are tied to trial programs, such as credit monitoring services. If the trial program terminates, the customers have to pay charges. Worse, the payment is almost equal or even more expensive than the payment when getting the legal credit reports and scores. That doesn’t make them free after all. Though customers can get the scores at no cost if they cancel the trial program before it expires, the cancellation can be difficult. The Federal Trade Commission is presently warning the public about these “free scores” websites. The customers should stick to the free credit reports that can be availed through AnnualCreditReport.com and not anticipate for an AnnualCreditScore.com.

So why can’t people have annual free credit scores access? Why do they have to wait for adverse actions before being showed their credit scores? Two things: formula and purpose. For instance, most people have the knowledge that the only credit scores used are the FICO scores. FICO scores, like the other credit scores in the country, use a mystery formula that is different with other credit scores. Imagine a crowd of people before a mortgage loan company demanding for a loan approval because their FICO scores are higher than what the mortgage lenders think. It would be even hard to explain to these people that the FICO scores of a credit company is different from the scores used by mortgage agents.

Experts have been continuously advising customers to check their credit reports regularly. Customers should take advantage of the free annual credit reports and check for errors or inconsistencies in those reports. Any score from any source would look good if the credit reports are good.

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