Are Free Credit Reports a Scam?

There are several companies that offer free credit reports. Credit Karma and Credit Sesame are two popular free credit report companies. So… are free credit reports a scam?

Credit Sesame members receive one free credit score per month and are able to monitor their credit report for free. Credit Karma members receive credit score updates weekly and also are able to monitor their credit report for free.

Is the credit score on really free?

Yes, the credit score is free. Credit Karma and Credit Sesame do not charge consumers for a copy of their credit scores. They do make recommendations for loans and credit cards based on your credit score and earn a fee from banks for recommending their products.

Some companies offer you a free credit score, but require your credit card number when you register. The company then charges you a monthly fee for keeping your account. Credit Karma and Credit Sesame do not do that. There is no risk of being charged in the future because they do not ask for your credit card to open an account.

Is it your real credit score?

The credit score you receive is not the FICO score that lenders see when they pull your credit report, but the score is similar to your FICO score and tracks along the same trajectory as your FICO score. An increase in your FICO score will show as an increase on the Credit Karma and Credit Sesame score.

There are three credit bureaus that track you credit score. Not all lenders report to all three credit bureaus so the information on your credit report will vary between the three credit bureaus. Your credit score will vary between the three credit bureaus. There is no one actual credit score. Everyone has different credit scores based on the credit bureau reporting the score. The score your receive from Credit Sesame is close to the credit score a lender will see.

What is credit monitoring?

Credit monitoring tracks changes to your credit report. It sends you an alert if a new credit inquiry is reported or there is any change to your credit report. Being aware of changes to your credit report helps protect you from identity theft.

Is it safe?

Credit monitoring websites need your social security number to sign up so they can pull your credit report. Once you sign up, they track your credit score and debt over time so you can see the change. But is it safe? Yes, they use the same encryption methods as banks.

Credit Sesame does not sell your personal data or share it with advertisers, employees or third parties. Credit Sesame actually provides free identity theft protection. All Credit Sesame members have $50,000 worth in insurance for protection from identity theft.

There are fraudulent services online that offer you a free credit score, but either charge you for the score or sell your personal information. Credit Karma and Credit Sesame are not a scam. User data is securely stored and not shared. Millions of people have benefited from monitoring their credit score with Credit Karma and Credit Sesame. They have also saved on loans using the products recommended. If you are looking for a way to monitor your credit score and learn more about improving your score, make sure you sign up with a reputable services.