It’s always easy to feel tempted for the free things, be it shopping discounts or checking free credit score. Credit score is a key determinant of your financial health and thus, plays a major role in loan and credit approvals. In fact, it is the very first factor that the lenders check for while considering loan and credit card applications for approval. However, not everything that glitters is gold, i.e. not every free thing gives benefits as we assume or expect and the same goes for checking free credit scores.
Although, it is mandatory for all the credit bureaus to provide at least free credit report to individuals once a year. But, there are also some third-party platforms offering to check credit scores for free. It’s quite common to fall for free traps, but meanwhile it is also significant to check how authentic the platform is. Hence, there are several reasons to why not opt for free credit score.
As we understand how important credit scores are for financial approvals, it is important to check the updated credit report to get an insight of where you stand financially. While, it’s easy to opt for free credit report check, but at the time, it is also essential to see whether the report is showing the updated details or is only showing the past payment information.
For example, you have an existing personal loan account and you’re paying monthly EMI of Rs.3200. As per the loan schedule, you have already paid the EMI for the month of April, but still your free credit report is only showing the data for the past EMI payments, i.e. for the months of January and February. So, it is clear that the report is not updated as per your recent payments and this would directly keep your credit health at stake as you would not be able to check for the updated credit scores.
Approach with cautious:
When it comes to dealing with your finances, it’s always of top priority to access the free credit score checking platforms with utmost caution. When you check the scores, you’re asked to provide confidential details like your phone number, email address, social security number, and PAN card number. Remember, your PAN card consist financial details like bank account information, account balance, and linked debit/credit card details, that you should never be sharing with any random individuals or online platforms.
Once you share such confidential details with unauthentic online platforms, you’re ultimately giving your consent to use your data as per the website’s policy. In fact, you cannot even raise a dispute with such online platforms as you’ve given them your consent to share the data in accordance to their policy. Hence, it is of utmost importance that one should always double check the authenticity of a website before providing them personal details just for getting lured over free credit score check. Not doing so could put in a major financial trouble due to increase in digital fraud activities.
Another reason to why not opt for free credit score is that your confidential details can be shared further with third-party agencies. Many online platforms offering free credit score check clearly mentions in their website policy that they could be shading the data-base further with third-party agencies. However, most of the times, going through the fine prints is usually ignored and this leads you to financial troubles. Not just this, third-party agencies could use your data for selling ads by accessing your browsing history and IP address.
Undoubtedly, when offering free score check option, such online websites always lure the customers by providing them authentic loan and credit card offers. For instance, when you check free scores online at a particular website, you start receiving mails and calls from the website offering you pre-approved personal loan, home loan, car loan, or credit card offers. But, when you process the pre-approved offer by provide all required details, you are certainly denied for any latest loan or credit offer.
Hence, clearly the loan and credit card offers claimed are completely unauthentic and unverified and are just extended to lure the customers to the website. However, there is no such verified loan offer and thus, going for such tempting offers is just a waste of time and energy.
Credit report is a vital financial document that reflects overall credit health of an individual, and absence of any information means you’re missing out certain opportunities. When it comes to checking your credit scores or credit report, it’s always essential to see if the report consists of even the minutest details of regarding the finances and credit accounts. Therefore, you should gain detailed knowledge about the factors playing major role in determining the scores and what sections a credit report contains. This will save you from any unwanted conflict or incomplete information.
Hence, instead of going for free credit score check, experts suggest to opt for paid credit score as the report would be updated with recent payment details as well.