3 Ways to get a free credit score

You're reading this article! That either means you trust us, your finger slipped, or you've never been scammed into getting a "free" credit score that actually cost you money. Don't worry, I'm actually going to give you a good answer, but I'm also going to let you know why there are always strings attached to a "free" credit score. The trick is to know what the strings are and whether you're willing to deal with them.

These are in order of preference, from best to worst, so read on!

1. Talk to your financial institution when you're taking out a loan.

The benefit
The benefit is very clear here. You're getting your score for free when it's being pulled. Loan officers will give you your credit score when you're applying for a loan, so it's a pretty easy thing to do, and you're not paying a dime for it. Other than the cost of the loan you're looking at, that is.

The strings
This is only going to work if you're serious about getting a loan. You can shop around for an auto loan or mortgage, but you should be serious about getting one when you choose to go this route. Therefore this does not work for the curious or for people who have time to improve their score before applying for a loan. If you're doing this just out of curiousity, expect your score to be hit by 3-5 points for the next 18 months. If you're on the cusp of one interest rate, that could end up putting you into a higher interest rate category the next time around.

2. Utilize Credit Karma or Credit Sesame

The benefit
Of the two, CreditKarma.com is the more visually aesthetic. As of writing this, I notice that CreditSesame.com is having some layout errors but typically it works as well. Each has their own strengths. Credit Sesame is unique in its focus on helping you find a home that's right for you and setting debt related goals, while Credit Karma has an active user base that asks and answers questions. Credit Karma also has some interesting features like scenario builders. What if you took on new debt? Closed out a credit card? Went 30 days delinquent on your loan? The effect on your credit is instantly visible.

The strings
OK, this isn't your "real" credit score, and it can at times be misleading. Both Credit Karma and Credit Sesame use scores that serve as good approximations, but are not FICO scores. Most financial institutions, including UMassFive, look at the FICO score. That means your Credit Karma score, which is called a "Transrisk" score and is provided by Transunion, or your Credit Sesame score, which is provided by Experian, shows up as higher, that will not help you when you come get a loan at a financial institution. Still, it's a great way to get a ballpark and see how your score is fairing over time, and unless you know the exact bureau your financial institution pulls their FICO score from, you may still end up getting a different score from one institution to the next, due to the different ways the reports compile information.

Another important thing to note is that these companies make money by selling you loans, and these loans are virtually never better than the ones you could get at a local financial institution. They just happen to have the big bucks and use them where they can.

3. Go to a "free credit score" website

The benefit
I said this at the beggining, but I'll say it again: This being the last option, is also the worst option. Free credit scoring websites like myfreecreditscore.com or freecreditreport.com have big budgets for commercials, and have jingles that easily stick. They tend to lure people in with the promise free or virtually free credit scores, typically from all three bureaus. Along with the credit scores, they also offer credit monitoring, e-mail alerts, and even identity theft insurance.

The strings
These companies market themselves as free, but are actually only offering 30-day free trials. They are typically relying on people who want something for free but forget to unsubscribe, or do not read the fine print. There's nothing inherently wrong with a credit score service, but it is not free, and unless you have come to the conclusion that the service is important enough for you to pay money for, you might want to consider exploring the other two options instead.

Conclusion

There are a variety of ways to get information about your credit score for free, but there are drawbacks to each of them. One big reason why this is the case is because the big three bureaus that provide credit scores charge for them. Some, like the FICO score, are actually third-party. That means the credit bureau has to pay FICO and will in turn charge consumers more to make up the difference. Typically, truly free, ad-driven credit score solutions offer cheaper version of the FICO score which are less accurate. And while nothing beats getting the true score straight from your financial institution, doing so before you're prepared to take out a loan can hurt your score in a small but potentially significant way.

Do you have any other tips for checking credit? What have your experiences been with the solutions I've covered here? Let me know!