It’s no secret that a good credit score brings a multitude of advantages. From better insurance rates, easier rental applications, to higher credit limits, there are tons of things you can enjoy with a strong credit history.
There are a number of ways you can check out your credit history. Some people check it through their credit card issuer or lender, while others purchase it from major credit bureaus such as FICO.
However, for many consumers, visiting free credit scoring websites is the most convenient option. But, is the free credit check really legit? Can people really rely on these services or are there hidden stipulations to look out for?
Checking Your Credit – Why is it Important?
The modern market has made credit scores the main determining element of a person’s financial health. Essentially, they are the numerical expression (three-digit number; between 300-850) of the creditworthiness of an individual.
Credit scores are based on people’s credit history – which involves their total debt, the types of loans they’ve had, their repayment history, and more. For lenders, credit scores are the direct depiction of how a borrower behaves.
By relying on a person’s credit score, banks and lenders can already assess whether the person has the means to repay loans in a timely manner.
Under the current setting, the rules are simple: low credit score can make life difficult in a number of ways, while a good credit score is a ticket to better and bigger opportunities.
With this, it’s no surprise that numerous websites offering “free credit checks” are now emerging. But the standard way to find out your verified credit score is to buy it directly from FICO.
Or you can purchase it from one of the major credit bureaus, such as Equifax, Experian, and TransUnion.
However, since all methods require money, it’s normal that some may opt to look for alternatives that will enable them to keep on top of their credits without spending a dime. And so these folks rely on free credit check sites.
The Truth About “Free” Credit Reports
While free credit check sites are gaining popularity, there is one major concern that bugs many consumers involving such services: Is their promise of free credit check really legit?
The good news: They do provide credit reports for free!
The bad news: Checking your report will subscribe you to their credit monitoring services, which normally come with fees.
According to Investing Answers, average fees for these credit monitoring services range from $12.95 to $29.95 per month – which, if not canceled before the end of the trial period and continued for a year, could add up to between $156 to $360.
Is a Free Credit Report Possible?
Generally, there is only one site that provides you an actual free credit report – and that’s AnnualCreditReport. In fact, the site is the only authorized source for free reports under federal law.
For the most part, you should have a general idea of what your credit score is, it’s not going to change dramatically from month-to-month. So using free sites constantly may be just a waste of time.
So yes a free credit report is possible, but it just might not be necessary.
The Bottom Line
Eyeing to land on a favorable loan? Wanting to apply for a credit card that offers a higher credit limit? Whatever the case is, knowing your credit score is necessary to see if you qualify for that thing you’re after.
Be wary of the hidden charges you may face by turning to free credit check sites you find online. Some of these services will give you the report for free upfront, but you’ll end up paying later on.
