What’s The Catch With Free Credit Scores?
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Your credit score is a 3-digit number between 300 – 900 that lenders use to evaluate your likelihood of making your payments on time. The higher your number the better your chances of being approved for different credit products and services. Given the importance of a credit score, it’s understandable that many Canadians want to keep a close eye on it. Especially when you consider the number of factors that can influence it including your payment history, credit utilization, credit mix, credit length and credit inquires.
What’s The Catch With “Free” Credit Scores
Services offering free credit scores have become increasingly popular over the last few years. While these companies are offering a seemingly great service, there is some skepticism around their product. So, we’re here to find out what’s the catch with these “free” credit score offers.
Check out the benefits of monitoring your credit score.
The credit score you receive may not be the same as the one your creditors see. While many of these service providers have partnered up with Equifax or Transunion, the credit score that they provide is based on a particular credit scoring model that is different than the one most creditors use. That being said, it is still quite accurate and can provide you with a good understanding of where your credit stands.
Learn more about how you credit score is calculated.
When you sign up for these services, many of the providers will gather and use your data for marketing purposes. One may even say that your privacy is the real price you pay for the “free” service. Moreover, due to the sensitivity of the information, you may find yourself in a vulnerable position if the company were to ever experience a breach in data.
Find out if you’ve been a victim of identity theft.
Some companies that offer a free credit score service usually provide your score for “free” on the basis that you subscribe to their credit monitoring service as well. While you can cancel the service during the trial period to avoid any charges, it can sometimes be a cumbersome process.
So there you have it! Those are the three main catches to these “free” credit score services.
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