Is Credit Sesame Safe?

Every so often, we need to check our credit score to make sure we are financially stable. If you do not do this currently, you really should. Knowing our credit score helps to keep us on track with financial goals as well as know where there is room for improvement. Many tools exist to inform us of such information like the online platform Credit Sesame. But, is Credit Sesame safe, or is it just another credit scam?

What is Credit Sesame?

Founded in 2010 by Adrian Nazari, Credit Sesame is a web-based tool that provides free credit scores from credit checker TransUnion to subscribers. It does not require you to place a credit card on file in order to obtain this information, which is updated for you monthly.

In addition to a free credit score, Credit Sesame takes its services one step further by also grading you on important credit factors, according to its website. Not to mention, you will also be provided with personalized tips to help you manage your finances and reach goals. The company also boasts of being able to let you know if you are paying too much on a credit card or loan interest.

While the above sounds beneficial to the everyday consumer, is it actually safe?

Is Credit Sesame Safe?

When you sign up for Credit Sesame, they make it clear you do not need to enter any credit card information to get started, as mentioned above. You can, though, choose to use them to find a loan, which they state they work to find the best rates and loan for you based on your needs in their FAQ.

It appears that some of the more common comments and criticisms of Credit Sesame include questioning their accuracy and the fact that their credit scoring is based on “FAKO” scoring instead of a FICO score. FICO credit scoring was developed by the Fair Issac Corporation, a data analytics company. They created the FICO credit score based on information from the three credit bureaus: Equifax, TransUnion, and Experian. This system, according to their website, is used by 90% of the top lenders. A FAKO score, on the other hand, is a play on words describing any other credit score not using a FICO rating.

Despite the fact that Credit Sesame uses VantageScores, also known as a FAKO, their services do appear to be safe. In fact, even though consumers note the slight differences in their FICO score to Credit Sesame’s free credit score, they do not seem to have any issues with safety. Not to mention, they’ve been able to obtain a 4.12 out of five stars, otherwise known as an A+ rating, on the Better Business Bureau. However, users should be aware that an incident of fraudulent actors using the Credit Sesame name to offer personal loans in exchange for fees was recently reported. We would recommend calling Credit Sesame directly regarding their loans should this be a route you’d consider.

Conclusion

Even though this web-based credit scoring may not be the most accurate, we at Saving Advice have come to the general consensus that Credit Sesame is safe. Plus, they do offer up to $50,000 in identity theft insurance for free to help protect you. Just keep an eye out for future spammers and scammers claiming to be the company.

Share your input with us: Is Credit Sesame safe to you? 

James Hendrickson

James Hendrickson is an internet entrepreneur, digital publishing junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.