Credit Card Companies Offering Free FICO Scores, But Does It Matter?
By Lynne Adkins
PHILADELPHIA (CBS) - Some credit card companies are now giving consumers free FICO scores so they can track their credit. But is it worth it to switch cards to get such a perk?
A FICO score is used to determine if you're a good loan risk. Michael McCloskey, assistant professor of risk management at Temple University, says the scores come from the three credit bureaus, and while you can get your credit report free, you have to buy the score. But now, he says, some credit cards companies are providing that free:
"It's on your statement every month. If you track your score and it's good -- a high 700 or low 800's -- and then one month and it goes down, you'll see it right there and it might alert you that something's wrong."
McCloskey says credit cards are giving them away to lure customers:
"It probably doesn't cost them much, if anything, because they're checking your credit all the time because you're a customer, it's just a nice added bonus. If you're a good borrower, the credit cards...they fight over the better customers."
He says anyone who might be thinking about getting a mortgage or car loan could find this perk helpful to make sure their credit is good and alert them to a problem which could take months to correct.
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