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Whether one opts for paid or free credit score services both represent the borrower’s creditworthiness. Lenders and other potential creditors use it as a measure to assess the individual/ consumer’s ability to pay back the borrowed amount.

The three-digit scores that range between 300 and 900, are a reflection of the borrowers’ financial habits such as how responsible they are is towards making repayments and how well they manage their credit. This means that if the scores are low or are inclined towards the 300 mark, they are considered as poor and the more they are towards the 900 mark or in the 750 to 900 bracket, the better they are.


Whether paid or free, the scores play an important role in the approval of loans. Secondly, both are based on the same factors such as track record of past payments, credit utilisation, credit mix, and new credit, but there lies an underlying difference between paid and free credit score services. While the free credit report is primarily a little sketchy, the paid service includes a lot of minute details.

People can also avail free credit score services whenever they wish. The customers just have to sign up for the services by logging on to their respective credit monitoring websites and receive the report within minutes in their mailbox. This gives them a broad idea about their credit health. Apart from these, some credit card companies too offer free services.

However, if customers wish to buy or get a paid version of their credit score report, it is a good idea as it gives a detailed insight into the financial transactions made so far. This also enables them to keep a tab on their spending habits and put a curb on overspending. The paid credit reports can be availed by contacting the credit reporting agency directly by accessing its website.

Apart from these, the Reserve Bank of India (RBI) has made it mandatory for all credit bureaus of the country to offer one free credit report to all the borrowers every financial year. Though free, this credit score report has all the components in detail.

Paid credit score charges

The charges for generating credit score differ from one credit bureau to another. The paid credit scores services can be availed monthly, quarterly, bi-annually, and annually and it takes a few minutes for the detailed version to reach the customer’s inbox.


Security: In these times stealing digital information and its misuse is common. This makes the customer’s details very vulnerable. The customers’ data is stored on the credit monitoring agencies server and by law they are responsible for its security.

Actual credit scores: A credit report includes information such as personal information, account details, credit inquiries, overdue debts, and so on. The free credit reports will show the customers the credit scores, but at the same time some vital information could be missing from it.

Grip on situation: Compared to the free credit score report, the paid report helps the customers gain better control of their finances. Paid scores enable prompt remedial action in time as well as get to know their actual financial standing. This in turn allows the customers with a chance to negotiate the loan terms in case they wish to apply for it in the future and further strengthen their financial standing. It also gives the customers the opportunity to build their credit scores by finding out where they have been lagging or spotting errors.

About vital information: When the information is unelaborated in a credit report, the customer may not get a chance of getting to know if some important information has been left out by the agencies. The customers have to analyse and assume certain information which could lead to a lot of miscalculations and in turn their credit scores could suffer. However, in paid credit score services, nothing is left to the imagination and all facts lie before the customer in print. Indication of responsible behaviour of customers: When customers do not mind spending a hefty sum to get a consolidated copy of credit report, it is an indication of how seriously they take their financial responsibility. Such customers would just not be satisfied with a superficial credit score report.

Appreciated by landlords, employers: When landlords and employers get to see the detailed paid credit report of a prospective candidate, they are rest assured that they are hiring the right candidate. It is an indication that the person is responsible and that their property or confidential and important business matters will be handled with care.


While a paid service could be useful in tracking the credit over time, a free credit score report allows a quick glance. So you see, there are reasons why people opt for paid credit score services even if they have to shell out some money.