Free credit report - Where’s the FICO score?

Consumers are unhappy that they may not obtain their credit score for free. Congress has mandated that the credit bureaus make copies of credit reports available for no charge to Americans, but they did not request the inclusion of credit scores.

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A savvy consumer who would like to keep an eye on his or her credit record can order a report every three months, each from a different bureau, and stay on top of his or her financial record. By law, every Individual is now permitted to receive one free credit report from each credit bureau each year. In 2005, at the urging of Congress, the three main credit agencies, Exquifax, Trans Union and Experian, put a Web site online that allows U.S. consumers to obtain a copy of their credit records at no charge.

Regardless of the importance of credit scores, the free credit reports do not include them. A lot of individuals are surprised to discover that the free credit report they obtain fails to include their FICO score. The credit score, also known as the FICO score, is a three-digit figure between 300 and 850 that represents a distillation of a person's credit worthiness. The FICO number is a useful, tidy, convenient tool that lenders or creditors can use to judge whether or not an individual is likely to repay a loan. Full credit reports are important, but a lot of creditors simply take a brief look at the score and make their decisions according to that number. The no-cost credit report program has worked quite well since going online in late 2004, and now the entire country is eligible for the service.
 

The credit agencies were justifiably upset when Congress mandated that they offer credit reports to consumers, even on a limited basis, for no charge. A well known argument is that consumers don't have to pay for copies of their medical records, so why should they pay for their financial records? The credit bureaus make their living by selling financial information about U.S. consumers. People have long been upset at having to pay for information about themselves.

Congress and the bureaus agreed upon a compromise regarding the giving away of financial information. The bureaus would give out free reports to Americans on a special basis, allowing consumers to get one document each year from each bureau. If consumers want to obtain their FICO scores, they would have to purchase a copy of their report from the bureaus. The compromise allowed the reporting agencies to offer financial histories that would leave out the all-important FICO score.

The service is not perfect, but it is, by and large, a good compromise. A few individuals are continuing to grumble, but at the moment this is the best solution offered. People are allowed to see a summary of their financial situations from the reporting agencies at no charge, while the bureaus' ability to sell information has been preserved. Anyone can obtain their FICO figures without cost if they have recently been turned down for a loan or charge card application.