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Apps Offering Free Credit Scores Have Big Drawbacks

Well-liked apps that provide you with free entry to credit score scores typically have hidden prices and should not supply the knowledge you might want to see, in line with a brand new Consumer Reports investigation.

Federal legislation states that every yr, each American can entry one credit score report from every of the three main credit-reporting corporations — Equifax, Experian and TransUnion. However credit score stories usually don’t embody credit score scores.

Customers usually nonetheless must pay to see their credit score scores, though there are a selection of the way to see these scores without cost. In truth, some corporations have created apps promising to offer shoppers a glimpse at their scores.

Nonetheless, CR discovered these apps typically depart a lot to be desired. In a press launch, Syed Ejaz, monetary coverage analyst for Client Reviews, says:

“Most of the apps we examined offer credit scores that aren’t typically used by lenders and come with other drawbacks, like unnecessary costs and privacy risks. No one should have to pay extra and trade away their personal data to private companies just to access their own credit information.”

The CR investigation checked out 5 fashionable apps:

  • Credit Karma
  • Credit Sesame
  • Experian Credit Report
  • MyFICO
  • TransUnion: Rating & Report

CR discovered that three of the 5 apps supply entry to credit score scores that aren't sometimes utilized by lenders when evaluating potential debtors’ creditworthiness.

As one may anticipate, solely MyFICO presents entry to the FICO rating utilized by the overwhelming majority of lenders, as does Experian Credit Report. Sadly, MyFICO costs $19.95 a month and Experian Credit Report costs $19.99 monthly — greater than $200 per yr.

Maybe worse, 4 of the 5 apps — Credit Karma, Credit Sesame, Experian Credit Report and TransUnion: Rating & Report — require shoppers to pay for entry to their credit score stories, CR says.

Paying for such stories sometimes is pointless, notably now. By legislation, shoppers can get these stories without cost as soon as per yr just by visiting the AnnualCreditReport.com web site. As well as, till April 2022, shoppers can entry these stories without cost weekly.

8 Kinds of Corporations That Take a look at Your Credit Report

Customers who use these apps additionally might put their privateness in danger, CR says.

The publication discovered that all the apps it analyzed acquire “a substantial amount of private information” from shoppers and should share the information past events which are named within the apps’ privateness insurance policies. In response to CR:

“This extensive data collection may not have immediate benefits for consumers, and could pose a privacy risk, especially in light of numerous data breaches at credit bureaus and data brokers over the years.”

Client Reviews is asking app suppliers to enhance what they provide to shoppers. The publication additionally desires Congress to go laws guaranteeing the suitable of all People to have free and limitless entry to each credit score stories and scores.

Nonetheless, you don’t have to attend for Congress to behave earlier than getting access to your FICO rating without cost. For extra particulars, try “7 Ways to Get Your FICO Credit Score for Free.”


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