The credit score is a very important financial number that can have wide ranging impacts on many different areas of your life, which is why many people pay for a glimpse of their credit score on a regular basis. There are many different places to obtain your credit score, but some companies use different calculations than other companies resulting in credit scores for a single individual covering a range of numbers and confusion over which one of the scores is accurate. Clearing up this confusion can be difficult, but these tips will help you figure out which credit scores are worth the cost and which ones are worthless.
Find The Right Companies
Consumers can now order their credit score from nearly 20 different companies, up 400% from just a few years ago, that use a total of seven different scoring methods to come up with the credit score that they are selling to you. Some of these companies are connected with the three major credit reporting bureaus while other companies were started to break into the credit score market. The best companies for obtaining your credit score are the ones that sell your actual FICO credit score, the credit score used by more than 90% of lenders across the nation.
Look For Disclaimers
If the company is selling you something other than a credit score generally used in the lending industry, they will often disclose this in a disclaimer listed somewhere on the website of the company. Legally, if the person does not read and remember this disclaimer, they have no recourse when they discover that the credit score they purchased is not the one used by lenders. Phrases like “not currently sold to lenders”, “for education purposes only”, “proprietary scoring system”, or “has no value in the marketplace” are good indications that the credit score you are receiving is not your FICO credit score.
Free Estimations
If you are only interested in an estimation of your credit score, which is what many of these websites provide, there are many free options that you can use. These free credit score calculators can be found in various places on the internet and calculate a rough estimation of your credit score based on the information provided by the user. Although these credit scores are not accurate, they will give you a good idea of where you will stand with lenders.