Are FICO Scores Entitled Once a Year?

A majority of consumers incorrectly believe they are entitled to one free FICO score each year, according to a 2008 survey by the Consumer Federation of America. Obtaining your FICO score is critical to several areas of your life that are probably dear to you, such as finding an apartment and getting a cellphone contract. You will be able to see if for free from lenders, but only in certain situations.

Identification

The Fair Credit Reporting Act entitles consumers to one free credit report each year from the major credit bureaus. A credit report does not contain a FICO score, only information on loan accounts, public judgments and inquiries into your report. The FICO formula is an algorithm that uses information in a credit report to calculate the likelihood of a borrower to repay a debt. The credit reporting bureaus do not even sell the FICO, only a separate company -- the Fair Isaac Corp. -- sells FICO scores.

Potential

Despite the fact that credit reports are more powerful because they contain the only information that can change variables in the often utilized FICO algorithm, some politicians want consumers to see their scores for free. Sen. Mark Udall, D-Colo., tried to amend the credit act in 2010 to include credit scores along with the free annual credit report, according to Smart Money.

Considerations

Plenty of alternatives to the FICO model exist, so a FICO might not be the score you need to worry about. A creditor might use his own formula, in which case you can probably never know your score with him. Some agencies report data not used by major bureaus -- called an alternative credit agency. These companies let you see your score for free but require monthly fees to verify payment data from lenders. Creditors may accept scores from an alternative bureau as a supplement to a traditional credit history or if you have no credit with the national bureaus.

Dodd-Frank Bill

Congress passed financial reform in 2011 with the Dodd-Frank Wall Street bill, which includes a provision to require some parties to show consumers their credit score if the creditor turns down an application because of a credit reason. As of March 2011, this bill has passed both chambers of Congress, but the final regulations have not been issued.

Tip

You can always ask the lender what your FICO score is during the loan application, but this does little to prepare for the application process. You want to boost your FICO score months before you start loan shopping.