Your credit score may be obtained for free from your credit card issuer, another lender, or a non-profit housing or credit counselor. Credit reporting companies may charge you a fee for your credit scores.
You actually have more than one credit score. Credit scores are calculated based on the information in your credit reports. Your credit score from each of the three major consumer reporting agencies will differ if the information about you in their credit reports differs. Additionally, lenders employ various scoring models for various loan kinds, and these models may produce somewhat different scores.
Some credit score providers give users access to a “educational” credit score rather than the kind that a lender would use. The CFPB published a report on the differences between educational scores and those used by lenders . For most people, an educational score is similar to the scores lenders use and can be helpful. But the scores can be quite different for some. Our report found a meaningful difference for one out of four people. When choosing where to get your credit score, find out what kind of score is offered.
It’s Legal, but Questionable
While it’s technically legal to buy a better credit score it’s a dishonest and risky practice. Essentially you’re paying someone to misrepresent your creditworthiness to lenders. This can have serious consequences, both financially and legally.
How It Works
Companies offering this service typically charge a fee ranging from a few hundred to a few thousand dollars. They then add you as an authorized user to someone else’s credit account with a good payment history. This boosts your credit score by associating you with positive credit behavior.
The Risks
1. Misrepresentation: You’re essentially lying to lenders about your creditworthiness, which can be considered fraud. This can lead to legal repercussions, including fines and jail time.
2. Privacy and Security Issues: By sharing your personal information with a third-party company, you’re increasing your risk of identity theft. These companies may not have the same security measures in place as reputable financial institutions.
3. Financial Strain: The fees associated with buying a better credit score can be significant, and you may not even see the desired results. Additionally, if you default on the loan, you’ll be responsible for the entire debt, even if you weren’t the primary borrower.
4. Short-Term Fix: The positive impact on your credit score from buying a better credit score is often temporary. Once the account is removed from your credit report, your score will likely drop again.
A Better Approach
Instead of resorting to questionable methods, focus on building your credit score the right way. Here are some tips:
- Pay your bills on time: This is the most important factor in your credit score. Set up automatic payments to avoid late fees and missed payments.
- Keep your credit utilization low: Aim to use no more than 30% of your available credit.
- Check your credit report for errors: Dispute any inaccuracies you find.
- Become an authorized user on a responsible account: Ask a family member or friend with good credit to add you as an authorized user to their account.
- Apply for a secured credit card: This is a good option if you have bad credit or no credit history.
Building a good credit score takes time and effort, but it’s worth it in the long run. You’ll qualify for better interest rates on loans, lower insurance premiums, and more.
Remember: Don’t fall for the temptation of buying a better credit score. It’s a risky and dishonest practice that can have serious consequences. Instead, focus on building your credit score the right way and reap the rewards of good credit for years to come.
How to get a credit score
There are several ways to get a credit score:
From a mortgage scoring notice: Should the lender use your credit score in the course of processing your residential mortgage loan application, they will send you a notice containing the credit score.
From an adverse action notice: The lender may provide you with a disclosure containing your credit score if you apply for credit and are denied, are required to pay a higher deposit (such as for a cell phone plan), or are given different terms because of your credit.
From a risk-based pricing notice: If your lender granted you credit on terms that were less favorable than those offered to the majority of its customers, you might receive a notice about your credit score.
From your financial service provider: A lot of big credit card companies and some auto loan providers now offer monthly credit scores to all of their clients. Usually, the score appears on your monthly statement or can be accessed online by signing into your account.
By speaking with a non-profit counselor: HUD-approved housing counseling organizations and non-profit credit counselors can frequently give you a free copy of your credit report and score, as well as assistance in reviewing it.
By using a credit score service: Many services and websites advertise a “free credit score. ” Some sites may be funded through advertising and not charge a fee. To obtain your “free” score on other websites, you might have to pay a monthly subscription fee to a credit monitoring service. These services are frequently marketed as “free” trials, but you may be charged a monthly fee if you don’t cancel within the allotted time, which is frequently as short as one week. Make sure you understand what you are getting into and the true cost of any service before signing up to try one of them.
By buying a score: You can buy a score directly from a credit reporting company. You also can buy your FICO credit score at myfico. com . Other services may also offer scores for purchase. You are not obligated to purchase credit protection, identity theft monitoring, or any other services that might be offered concurrently if you choose to purchase a credit score.
You are entitled to get a free credit report annually from each of the nationwide credit reporting companies. It’s a good idea to review your credit reports for free every 12 months. Most or all of the information that goes into a credit score comes from your credit report. Your credit report tells you much of the key information about your credit record. Learn about the difference between a credit report and credit score.
Due to the COVID-19 pandemic, Equifax, Experian, and TransUnion are offering free weekly online credit reports through December 2022.
As part of the settlement agreement to settle charges against Equifax related to its 2017 data breach, you are entitled to six free credit reports every 12 months from Equifax through December 2026, in addition to your free weekly online credit reports until December 31, 2022 and your free annual credit reports. You can access these free reports online at AnnualCreditReport. com or get a “myEquifax” account at equifax. com/personal/credit-report-services/free-credit-reports/ or call Equifax at 866-349-5191.
Do You Really Need A Credit Score To Buy A House?
FAQ
How much does it cost to buy your credit score?
Can I pay for a good credit score?
Can I pay someone to boost my credit?
What is a credit score worth?
Can I get a loan based on my credit score?
With a higher credit score, you could qualify for better loan products with better terms and higher loan amounts. Experian can help you find loans based on your FICO ® Score. Get credit card offers based on your unique credit and see if you’re matched before you apply.
Where can I buy a FICO credit score?
You also can buy your FICO credit score at myfico.com . Other services may also offer scores for purchase. If you decide to purchase a credit score, you are not required to purchase credit protection, identity theft monitoring, or other services that may be offered at the same time.
How do I get a good credit score?
There are four main ways to get your credit score: Check your credit or loan statements. Talk to a credit or housing counselor. Find a credit score service. Buy your score from one of the three major credit reporting agencies: Equifax, Experian, or TransUnion.
Can you get a free credit score?
Many companies now advertise “free credit scores.” These businesses could be part of credit reporting companies, scoring companies, lenders, or others. Some services make money from advertising and don’t charge you a fee. Other services offer scores for purchase. For example, you can buy your FICO credit score at myfico.com .