Free Credit Scores

[jaydee325]

Not the ones you can get one per year of. These are the ones that Credit Unions, Banks, or Credit Card Companies sometimes provide on the on-line accounts each month as a service.

I had a conversation with the Branch Manager of my Credit Union yesterday and asked why the CU score was consistently 20 points or so lower than the one reported each month by one of my credit card issuers. His answer was surprising.

He told me that those services are a subscription service the lenders subscribe to. There are multiple programs available to them from the credit rating companies. Each subscription looks at different parameters of the borrowers and therefore, the numbers posted will vary by as much as 20 points or more even though both lenders are using the same rating service (both were using Trans Union in this case).

He told me don't put too much into these numbers. Even if someone were to apply for a loan, the credit score they pull would definitely be based on a different program and again the numbers would vary from the free one posted on the website. In an example, he further stated that if one person with say a 720 score and another with an 820 score applied for a loan. They would both be deemed credit worthy and granted the loan if all other parameters were similar as well.

I commented that these free credit scores were really worthless then, and his reply was pretty much! They are just a big picture snap shot in time.

 

[sea2summit]

I wouldn't say they are worthless, the big thing they allow folks to do is monitor things going on in their credit report. I check mine weekly and once did find an error which I got dealt with quickly rather than finding out about it the next time I tried to use my credit. But just like your banker said, the "score" is more of a guideline regarding your credit worthiness than anything and other numbers are going to matter a lot more. You could have a 850 credit score and be up to your eyeballs in debt, which is gonna make it hard to get money from the bank.

 

[Bill Guenthner]

A credit score is just an indicator of how profitable you are to lenders. For many years my credit score was zero because I had no loans and no credit cards.

 

[deserteagle71]

A credit score is just an indicator of how profitable you are to lenders. For many years my credit score was zero because I had no loans and no credit cards.

^This is exactly correct!

It has been many years since I bought anything on credit. My homestead mortgage was paid off years ago so now I have no credit rating. At my age I don't intend to go into debt for anything so I just don't care!

 

[tallyho8]

A credit score is just an indicator of how profitable you are to lenders. For many years my credit score was zero because I had no loans and no credit cards.

I have to disagree. Many people with a high credit score pay their entire credit card bill off immediately and never pay any interest charges which are where the credit card companies make their income. People with lower scores pay their bills partially each month plus interest and other charges making high profits for the company.

Even though you never make loans or use credit cards you are probably paying more for your insurance since credit scores are a determining factor in insurance rates.

 

[scaredychicken]

Dave Ramsey fan here

 

[Jstpssng]

I went through a spell when that number seemed really important to me. The novelty faded though and since I won’t be needing a mortgage it’s more important to keep my bills paid than worrying about what some reporting agency said.
Funny thing about the correlation between credit scores and insurance; 7 years ago when I took out an auto loan I had “no” credit rating... the last loan I had taken out was in 2002. Now it’s a lot better number...
yet my insurance rates haven’t changed.
My score is going to be dropping soon as I have too many credit cards; even though I don’t use them they still need to be monitored so I am getting rid of all but 3.
Using their formula that will decrease my available credit, making me less desirable.

So what!?!

 

[TBone]

A credit score is just an indicator of how profitable you are to lenders. For many years my credit score was zero because I had no loans and no credit cards.

I have always had a high credit score but I find that after paying off practically all of my debts and use a credit card sparingly my credit score is gradually going down. Past history of 0 late payments or problems don't seem to matter to the big 3 agencies. They would prefer you pay for everything you have by the month. I'm too old to start doing that again.

 

[Herness]

I am not so happy with my credit score these days. Any suggestion how to improve it?

 

[polo1665]

I am not so happy with my credit score these days. Any suggestion how to improve it?

If you use your credit card and pay the bill in full every month (don't miss payments) your score should improve, unless other factors are dragging it down. There are more than a few factors that determine your credit score.