Free Credit Report But With a Catch
Under the law, you are entitled to one free credit report a year, but just because you get the report does not mean you’ll get the score.
Credit reporting bureaus Equifax, Experian and TransUnion offer a free credit report per year, with other consumer reporting agencies that offer personal credit report via the Internet.
The report itself is actually just a compilation of a person’s credit history; allowing a person to closely monitor his or her past financial activity. Outstanding loans, current credit accounts, all appropriate balances and all payments made will be reflected in the report.
These companies, however, do not provide the credit score that serves as the basis for a lender’s decision to approve or deny financing. The credit score also affects the terms if the financing should be approved.
They will only release these ratings after a fee is paid, which is something that not many consumers are aware of. Many consumer reporting agencies don’t even have the courtesy of warning consumers that they will be charged when they get a score along with their report.
The credit report alone can be significantly useful – even if the score is not mixed in.
Consumers can use the report to gauge what positively or negatively affects their credit ratings, while errors and mistakes can be quickly spotted and corrected once the report is reviewed.