Free credit report - Where’s the score?

Washington has required that the credit bureaus provide copies of credit reports available for free to consumers, but they did not demand that credit scores be included. Consumers are unhappy that they may not get their credit score at no charge.

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A savvy individual who wants to keep a close watch on his or her record can order a credit report every three months, each from a different bureau, and stay on top of his or her financial record. Recently, at the urging of Congress, the three main credit agencies, Experian, Equifax and Trans Union, put a Web site online that allows American consumers to obtain a copy of their credit records without cost. By law, each Individual is now allowed one free report per credit bureau per year.

Despite the importance of FICO scores, the free credit reports do not come with them. The FICO, or credit score is a nice, streamlined, convenient tool that lenders can use to decide whether an individual is likely to pay back a loan. Complete credit reports are helpful, but many financial institutions just take a brief glance at the FICO score and make their determinations based upon that figure. The free credit record system has worked quite well since its inception in late 2004, and now the whole country is eligible for the program. The credit score, also known as the FICO score, is a three digit number between three hundred and 850 that represents a distillation of an individual's credit worthiness. A large number of people are surprised to discover that the free credit report they receive fails to come with their FICO score.
 

The credit bureaus were understandably unhappy when Congress mandated that they provide credit reports to individuals, even on a limited basis, for no charge. A common argument is that consumers don't have to pay for their health records, so why should they pay for copies of their financial records? Consumers have long been displeased at being required to shell out for information about themselves. The credit reporting agencies earn their living by selling financial information about Individual consumers.

Lawmakers and the reporting agencies agreed upon a compromise regarding the giving away of financial information. The reporting agencies would provide financial records, for free, to consumers on a special basis, allowing people to get one document annually from each bureau. The compromise allowed the bureaus to offer credit reports that would leave out the vital FICO score. If individuals want to obtain their FICO scores, they would have to purchase a copy of their report from the bureaus.

The system may not be ideal, but it is, on the whole, a fair compromise. A number of consumers are still complaining, but right now this is the best answer offered. Individuals are allowed to get an overview of their financial situations from the bureaus at no charge, while the credit bureaus' ability to sell information has not been compromised. Individuals can get their financial histories without cost if they have recently been declined for a loan application.