How much is it to get a credit report

Should you pay to see your own credit score? Well, the Fair Credit Reporting Act (FCRA) does allow companies to charge you to see your score, so in some cases, you might not have a choice, especially if you need to repair damaged credit. However, there are ways to see your credit score for free, and that is generally enough for many people.

Note that a credit score is not the same thing as a credit report. You are entitled to a free copy of your credit report once a year under the law.

Key Takeaways

• Your credit score is a numeric representation of your credit report.
• You can get a free credit report once a year from all three major credit bureaus.
• A number of credit card companies let you see your credit score for free, usually on a monthly basis.

Credit Score vs. Credit Report

A credit score is a number that evaluates your creditworthiness based on your credit history. Your credit score is a numerical representation of your credit report. The better your credit report is, the higher your credit score will be.

The credit report is a detailing of your credit history prepared by one of the three major credit bureaus: Experian, Equifax, and TransUnion. Once per year, you can request a free copy of your credit report from each of the three agencies. Just go to the government-sanctioned website AnnualCreditReport.com and follow the simple instructions.

One Score Matters Most

Other companies market their own versions of a credit score, but one score matters the most: your FICO score. (The data analytics company that developed the FICO score, the Fair Isaac Corporation, is now also called FICO.)

In 2016 the Mercator Advisory Group conducted research that showed that about 90% of all lending decisions factor a FICO score into the mix. Thus, if you are going to pay for your score, it should be for that one. However, there are ways to get your score for free.

Free Sources of Credit Scores

A growing list of card companies provide your FICO score free of charge. They include:

• Barclaycard US
• Discover
• First National Bank of Omaha
• Citibank
• Chase
• Bank of America

Keep in mind that FICO scores are based on a single credit report from one credit bureau, not all three combined. Discover, for example, provides the TransUnion score. The differences among the scores should be minor, however.

When You Get a Home or an Auto Loan

If you have applied for a major purchase, the lender that pulled your report will probably give you a copy of your score if you ask. You are entitled to receive your score if your application for credit is turned down or you receive less-than-favorable terms as a result of your score.

It’s advisable to check your FICO score six months before a major purchase.

You Don’t Really Have to Know It

Your FICO score is a great way to quickly gauge the condition of your credit, but it’s nothing more than a reflection of your credit reports, which you can get for free annually. If you faithfully request all three reports once a year, examine them carefully, and clean up any misinformation, your credit score isn’t likely to tell you anything you don’t already know.

There are some exceptions. If you have damaged credit, your score is an easy way to measure your progress as you work to repair your credit. It’s also a good idea to look at your score six or more months before a major purchase to make sure you’re set up to get the best possible interest rates on a car loan or mortgage.

If you do have to pay for it, a one-time request for your FICO score will cost you about $20. You can also pay monthly for continuous credit monitoring, with FICO offering Basic ($19.95 per month), Advanced ($29.95 per month), and Premier ($39.95 per month) plans. However, in most cases, annually monitoring your credit report will probably be enough.

What’s a Good Credit Score?

FICO credit scores range from a rock bottom 300 to a top 850, with 300 to 579 rated poor, 580 to 669 fair, 670 to 739 good, 740 to 799 very good, and 800 and above excellent.

Banks may request for your credit report before they give you a loan. Find out about the credit bureaus, credit reports and the things that can affect your credit score.

Key takeaways

• Banks may use your credit report to assess your financial situation.
• Every default or late payment leaves a mark on your score.
• Learn good money habits to ace your future credit report.

What is a credit bureau?

A credit bureau is an agency that collects and stores information on your credit history, such as loans, credit card applications and repayment records.

Information in the credit report is provided by members of the credit bureau such as banks and credit card companies, and obtained from public sources on bankruptcy.

Approved credit bureaus

For banks and finance companies, only 2 credit bureaus are allowed to obtain such information in Singapore. They are Credit Bureau (Singapore) and Experian Credit Bureau Singapore (ECBS).

For licensed moneylenders, the Moneylenders Credit Bureau (MLCB) is the central repository of data on borrowers’ loans and repayment records with licensed moneylenders. It allows licensed moneylenders to assess the creditworthiness of borrowers and help borrowers avoid borrowing beyond their means.

What is a credit report?

A credit report is a compilation of your credit payment history collected across all your banks. It is issued by a credit bureau to banks, finance companies and credit card companies when they make enquiries about you. You may also request a copy of your report from the bureaus.

The credit report includes information such as:

• Basic personal profile data (excluding contact addresses and telephone numbers).
• Records of all credit checks made on you.
• Credit repayment trend for the past 12 months, including late payments on credit card bills.
• Default records, if any – displayed from the date it was uploaded to the credit bureau.
• Bankruptcy records, if any – displayed for 5 years from the date of discharge. If you are able to repay your debts in full, the Bankruptcy Order will be annulled and your bankruptcy record will be removed immediately.
• Closed or terminated credit accounts – displayed for 3 years from the date the account was reported closed or terminated.
• Aggregated outstanding balances.
• Aggregated credit limits.

Why it matters

The credit score on your report shows how likely you will repay your debts.

Banks will assess your creditworthiness by looking at the credit score. The score helps them make better lending decisions when you apply for loans and credit cards.

A good credit repayment history makes it easier for you to qualify for loans and credit cards in the future.

Factors that affect your report

A number of different factors could affect your credit report:

• Credit you have now - This includes the number of accounts open or active that provide you with a credit facility.
• Credit history - Long-established credit history shows that you're a reliable borrower.
• Enquiry activity - Too many new applications or enquiries show that you're trying to take on more debt. Don't apply for a new credit card unless you need it.
• Recent credit - If you have recently taken multiple new credit facilities within a short period, you may be overextending yourself.

How to get a copy of your report

To check your credit score, contact Credit Bureau Singapore or Experian Credit Bureau Singapore (ECBS).

If you disagree with your report

If you spot an error or disagree with some information in your credit report, write to the credit bureau about it. The credit bureau will:

• Speak to the bank that provided the data
• Post a notice in your credit report that the data is being disputed and is under investigation.
• Inform you of the outcome
• If any amendment is made to your credit report, send the revised report to all banks who have made enquiries on you in the past three months

Tips on keeping a good credit score

To maintain a healthy credit score:

• Pay all your outstanding monthly credit in full
• Always keep track of the payment due dates and remember to pay before then
• Avoid too many sources of credit. It's easier to keep track of your repayments when you have fewer credit facilities

What is the fee for credit report?

How do I get my credit report for free?

How can I get my credit report immediately?

Does it hurt to get a credit report?