Free FICO scores exist, but aren't easy to come by
Editor's Note: The story below, while accurate when originally published in 2010, has become outdated. For a more up-to-date story, see "Credit cards that offer free credit scores"
Dear Credit Score Report,
Is there any such thing as a free credit score? I'll be getting a new car in about three months. -- John M.
Free credit scores do exist and are relatively easy to find, but the tricky part is getting the scores lenders actually use.
If you've already applied for a loan or a credit card, it's not so difficult. As of July 2011, new regulations say you are entitled to a free score if you are rejected for a loan application or approved at less than the best terms. But what if you want to find your score before you apply?
While you can find websites and other businesses promoting free credit scores to consumers, these typically aren't the scores banks look to when making lending decisions. Instead, borrowers should seek out their FICO credit scores, which are used by most U.S. lenders, including the top 25 U.S. credit card issuers and auto lenders. A non-FICO credit score can give you a rough idea of where you stand relative to other borrowers. We offer one such tool ourselves: the CreditCards.com free Credit Score Estimator, which will approximate your score based on a few simple questions.
But if you have a loan you want, and especially if you think you might be a borderline case, make the extra effort to obtain your FICO score before you apply -- even if you have to pay for it. Otherwise, you're unlikely to see the same number that your lender is using.
If you're willing to pay, you can easily purchase your Equifax and TransUnion FICO scores for $19.95 each at myFICO.com. That's up from a previous price of $15.95 each. (There's no way for consumers to buy a FICO score from Experian, the third of the major credit reporting bureaus.) However, if you're dead set on not paying for your FICO score, it may be possible, but it'll take some extra effort.
At least two other credit unions -- Digital Federal Credit Union (DCU) in Marlborough, Mass., and Partners 1st Federal Credit Union in Fort Wayne, Ind. -- provide their members with free FICO scores. DCU says its members can sign up to receive the free FICO scores once a month, via a service that began in March 2010. Meanwhile, Partners 1st has "FICO scores on our computer system (updated twice annually), and any member may ask us for their score," says Cindy Emmerich, the credit union's vice president of marketing, via e-mail.
As for major banks, in an informal poll conducted by the CreditCards.com editorial team, Bank of America, Chase, Citi, Capital One, Wells Fargo and USAA customer service representatives said they do not supply customers with free FICO scores. That list obviously isn't complete, so be sure to ask your own bank if it offers free FICO scores. American Express offers its consumer and small business cardholders free online access to their credit scores once a year, although in the form of the Experian Plus score. That scoring model is "an educational credit score that can range from 330 to 830, with a higher score indicating lower credit risk," explains credit bureau Experian's Renee Borsack. AmEx admits that it doesn't use the Plus score in its lending decisions.
You can also get your FICO score during the home buying
process. Consumers "who apply for a residential mortgage receive for free
the FICO scores used by the lender in underwriting the loan application,"
As noted previously, consumers now also receive free credit scores following loan applications that aren't approved at the best terms. Final rules issued in July 2011 by the Federal Reserve and Federal Trade Commission mean that when a borrower's low credit score results in a credit denial or higher interest rate, the lender must share information about that score. If the score used was from FICO, then the borrower may receive a free copy of their FICO credit score.Of course, since loan applications can lower your FICO score, applying for credit just to get a look at your score isn't a move I'd recommend.
See related: New Fed, FTC rules mean more free credit scores for consumers, How your FICO credit score is calculated: Payment history, How a FICO credit score is calculated: How much you owe, How your FICO credit score is calculated: Length of credit history, How your FICO credit score is calculated: New credit, The FICO 5: Breaking down the elements of the FICO score
Meet CreditCards.com's reader Q&A experts
Does a personal finance problem have you worried? Monday through Saturday, CreditCards.com's Q&A experts answer questions from readers. Ask a question, or click on any expert to see their previous answers.
- What everyone should know about credit reports and scores – For my final CreditCards.com column, I've written a letter to readers that summarizes what you really need to know about credit scores and reports ...
- Why closing a credit card can damage your credit – After the bank hiked the annual fee on his credit card, a reader reacted by closing the account, which lowered his credit score. Our expert explains why that happened ...
- Jeremy M. Simon's 3 favorite credit scoring questions – For my 100th column addressing reader questions on credit scores and reports, I've taken a look back at some of emails that most surprised, challenged or amused me ...