Credit reports - Where’s the FICO score?

Washington has required that the credit bureaus make copies of credit records available for free to everyone, but they did not request the inclusion of credit scores. Consumers are unhappy that they may not obtain their credit score at no charge.

In 2005, at the request of The Federal government, the three main credit agencies, Trans Union, Experian, and Equifax, put a Website online that allows American consumers to get a copy of their credit reports for free. According to the law, each and every American is now permitted to receive one free credit report per credit agency per year. A savvy person who wishes to keep a close watch on his credit report can order a credit report every ninety days, one from each bureau, and stay on top of his or her financial record.

Many individuals are surprised to discover that the free credit report they obtain fails to include their FICO, or credit score. The FICO score is a nice, streamlined, convenient financial tool that lenders and creditors can employ to choose whether or not someone is likely to pay back a loan or mortgage. Full credit reports are useful, but many lenders or creditors merely take a brief look at the score and make their decisions from that figure. The credit score, often known as the FICO score, is a three-digit number between three hundred and 850 that represents a distillation of a person's credit worthiness. Despite the importance of credit scores, the free reports do not include them. The free system has worked reasonably well since going online in late 2004, and now the entire country is permitted to use the service.
 

The bureaus were understandably unhappy when Congress required that they give financial records to consumers, even on a special basis, for free. Consumers have long been displeased at being required to pay for information about themselves. The credit reporting agencies earn their living by selling financial information about American consumers. A frequent argument is that people don't pay for copies of their medical records, so why should they pay for their financial records?

Washington and the bureaus agreed upon a compromise involving the free distribution of information. The agreement permitted the bureaus to promote financial records that would not include the all-important score. If consumers want to get a copy of their scores, they would have to pay for a copy of their report from the bureaus. The reporting agencies would offer financial records, for free, to Americans on a limited basis, permitting people to get one report per year from each bureau.

People are allowed to examine a summary of their financial situations from the bureaus at no charge, while the bureaus' desire to market information has not been taken away. Anyone can obtain their FICO figures for free if they have recently been turned down for a loan or mortgage or charge card application. The program may not be perfect, but it is, by and large, a reasonable compromise. A number of consumers are continuing to grumble, but right now this is the best solution to be had.