If you have ever applied for a loan, you understand the importance of a good credit score. Many people use apps to monitor their credit score, but a recent investigation by Consumer Reports reveals the downsides of these five popular credit monitoring apps: Credit Karma, Experian Credit Report, Credit Sesame, TransUnion Score & Report, and myFICO.
Consumer Reports found that none of the free versions of the apps use industry standards when calculating credit scores. This inaccurate information misleads users and can impact their financial decisions. Experian Credit Report and myFICO use the accurate method of calculating, but only in their paid user plans. Legally, consumers are entitled to their credit reports free of charge.
User data is also at risk. These apps collect more personal data than necessary and share it with undisclosed third parties. Credit Karma’s privacy policy mentions that the app can get information about users, including employment and income data and local business reviews.
When users sign up for any of these apps, they also agree to a mandatory arbitration clause, waiving their ability to go to court in an individual or class action case against the company. Instead, consumers are forced to resolve their dispute with the company through an internal resolution process, which can be fraught and time-consuming.
WHAT YOU SHOULD DO
Consumer Reports recommends utilizing other resources to check your credit score. AnnualCreditReport.com provides free weekly credit reports. Most banks and credit cards also offer users access to their credit scores. To read to full Consumer Reports investigation, click here.
Lawyers at Shub Law may be able to assist you with issues you are having any credit agencies. Please contact us if the need arises for a no-cost consultation.
