Only about 31 percent of Americans know that credit scores rate your chance of defaulting on a loan, rather than knowledge of credit usage, according to the Consumer Federation of America. Getting your credit rating is an important first step to boosting your score. Credit scores, however, are usually not free.
Misconception
Lenders use the credit rating system developed by the Fair Isaac Corporation more than any other. Since 2009, consumers have not been able to purchase their true FICO score from the big three credit bureaus: Equifax, Experian and TransUnion. The major bureaus sell a score based on the FICO formula or a proprietary score they hope lenders will consider in loan applications. You want to make sure any score you get is a FICO score.
Trial Offers
Some companies offer your FICO score for free if you sign up for a trial service, such as credit monitoring. Even the major bureaus offer this type of deal. As long as you remember to cancel the service before the trial period ends, there is little danger. Otherwise, you must pay the annual fee that can exceed $100. Credit services may try to have you call a customer service instead of conveniently canceling online.
Other Possibilities
A few banks offer free credit monitoring to their customers. Some personal lending websites show you your FICO score after signing up and may offer bonus cash too. During the loan application process for a car or home, the lender will pull your credit report and may show it to you if you ask.
Tip
If you know the details of your loans and financial background, you can get a fairly accurate estimate of your FICO score by using an online score estimator (see Resources). You can pull your report from AnnualCreditReport for free to double-check your financial history.
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