Credit report for free, but no score. Why?

Washington has required that the credit bureaus provide copies of credit records available for free to everyone, but they did not insist upon the inclusion of credit scores. Consumers are unhappy that they may not obtain their FICO score for free.

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In 2005, at the urging of Congress, the three main credit bureaus, Trans Union, Equifax and Experian, put a Web site online that allows U.S. consumers to get a copy of their credit records for free. A savvy consumer who would like to keep a close watch on his or her record can request a credit report every three months, each from a different bureau, and stay abreast of his or her financial record. According to the law, each American is now entitled to one free report per credit agency per year.

The credit score, also known as the FICO score, is a three digit number between 300 and eight hundred fifty that represents a distillation of a consumer's credit health. The FICO score is a simple, streamlined, convenient financial tool that lenders can use to choose if an individual is likely to repay a loan. Full credit reports are important, but many lenders or creditors merely take a quick glance at the score and make their decisions based on that figure. The free credit report program has worked relatively well since its inception several years ago, and now the whole country is eligible for the program. A lot of individuals are surprised to discover that the free report they obtain doesn't include their FICO score. Regardless of the importance of credit scores, the free reports don't include them.
 

The credit bureaus were understandably upset when Lawmakers mandated that they offer credit reports to individuals, even on a limited basis, for free. The credit reporting agencies make their living through the sale of information about American consumers. A frequent argument is that consumers don't pay for their medical records, so why should they have to pay for their financial records? Consumers have long been unhappy at having to pay for documentation about themselves.

Lawmakers and the bureaus came to a compromise regarding the giving away of financial information. The agreement allowed the bureaus to offer documents that would not include the all-important FICO score. The reporting agencies would offer the product, for free, to individuals on a limited basis, allowing consumers to apply for one document annually from each bureau. If individuals want to obtain their scores, they would have to pay for a copy of their financial record from the bureaus.

Some individuals are grumbling, but at the moment this is the best answer available. The system may not be perfect, but it is, on the whole, a reasonable compromise. Borrowers can get their FICO figures for free if they have recently been turned down for a loan or loan application. Consumers are allowed to see a summary of their financial history from the reporting agencies for free, while the bureaus' desire to sell financial information has not been taken away.