Monday, April 27, 2009

Free Credit Report, Not Free Credit Score

You've all seen the guys on TV with the pirate hats advertising free credit reports, but there is a big difference between a free credit "report", and a credit "score". The Fair Credit Act entitles you to a free credit report once a year. This will allow you to review your payment history with creditors, and see an overview of your various credit accounts. The problem is that most people want to know their credit score which costs money.

A credit score is a number between 850-300 that ranks your creditworthiness. Your credit score is calculated by the three separate credit bureaus Experian, Equifax and Transunion. Each credit bureaus can have a different score. It is important know all three scores to help identify errors, and give you an overall average.

With that being said, is the ONLY authorized source to get your free annual credit report under federal law.

*Beware of sites that claim to have free credit reports and free scores, they will usually lure you into subscribing to some kind of credit monitoring program that will end up costing you money.*

A good website to purchase your credit score is They offer a fairly encompassing evaluation of your credit, including your all three credit scores for around $50.00. is also highly recommended by Suze Orman.

It is good to check your credit at least once a year.

1 comment:

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