News Now

You may be buying a bum credit score
McLEAN, Va. (8/8/11)--Myriad credit score ads flooding the airways and Internet not only are confusing and costly, they’re misleading: In many cases, the score you get is higher--or lower--than the credit score your lender uses to grant you credit. A study released last month by the Consumer Financial Protection Bureau, Washington D.C., warned that consumers unaware that there are many credit scores available might think the score they get is their one true credit score. In fact, you could have widely divergent scores from different agencies (USA TODAY July 25). Promotions for “free” credit scores are simply the hooks to get you to sign up for credit monitoring, identity theft protection, or other services that cost anywhere from $15 to $30 a month. Worse, the score you get might be so misleading that you could have unrealistic expectations when you visit a lender. Scores from credit reporting agencies often are different from the credit score lenders use. Even credit scores bought through could be misleading, according to the report ( Aug. 1). If your credit is stellar, you’ll likely have a high credit score no matter what score lenders use. And if you have really bad credit, the same is true: All your scores will be low. But if you fall between the two extremes, as most consumers do, it’s likely the score you get is different from the one your lender uses. Why does that matter? It affects your cost of credit. So follow these guidelines:
* Know your rights. If you’re turned down for a loan, or you’re approved for a loan with a higher interest rate than the rate offered to the lender’s best customers, a new law says the lender must provide you a free copy of your credit score. Lenders also must explain what factors affected your score. * Check out your free, no-obligation credit profile. Visit Credit Karma, Quizzle, Credit Sesame, and websites for a general sense of whether you’re an excellent, average, or poor credit risk. * Buy FICO. This is the score most lenders use. Fair Isaac Corp. sells the FICO credit score for $19.95 at * Order your free credit reports. Visit and make sure the information in your Experian, Equifax, and TransUnion reports is accurate. Correct errors that could have a sinking effect on your credit score. And steer clear of; if you don’t cancel the “free” trial membership in time, you’ll be billed monthly for services you may not want or need.
For more information, listen to “Does Your Credit Score Tell the Truth About You?” in the Home & Family Finance Resource Center.
Other Resources

RSS print
News Now LiveWire
For the last 75 years, even in the most difficult of times, Mill Town #CU has been there for the community it serves. Read #NewsNow Tues.
6 hours ago
The 1st vid shows how consumer can become victim and, advice to those who think they've been targeted.
10 hours ago
.@TheNCUA has released two videos designed to raise awareness of elder financial abuse.
10 hours ago
Celebrate #100MM with @MDDCCUA1 at Orioles v Blue Jays tonight at Camden Yards
11 hours ago
The At Home In Lawrence mortgage program from @MetroCU is designed to help revitalize Lawrence, Mass.
11 hours ago
150x172_Annual Report 2013Unite for Good Share your Stories100 Million CU Memberships