A few typical inquiries concerning our identity and our work are made by curious customers. Here are the solutions you require.
Consumer advocates include the financial wellness business Credit Sesame. Any American customer with a credit file can get a free copy of our monthly updated credit ratings. Additionally, Credit Sesame offers services to assist customers in making wiser financial decisions.
We provide users with free credit scores so they can:
Select the credit options with the most favorable terms.
Improve credit standing by taking particular measures to do so in order to save even more money in the future.
Consumers were they misled by Credit Sesame?
No. TransUnion and Equifax were penalized heavily by the Consumer Financial Protection Bureau (CFPB) in the beginning of 2017 for misleading customers about their credit scores and credit reports. According to the CFPB, TransUnion and Equifax misled clients into thinking they were buying the “same score lenders use to make credit decisions.” These businesses also misled clients into signing up for free or $1 trial memberships without making it apparent that these memberships would eventually turn into monthly subscriptions that would be automatically charged to their credit cards.
That order, or any other order in history, did not include Credit Sesame. We have always provided members with their “educational” or “consumer” score. Additionally, as no credit card information is necessary to sign up, there is zero chance of incurring unforeseen fees or penalties for our service. Only when you decide to pay for a premium service is payment necessary.
Along with free credit scores, Credit Sesame users also receive free credit monitoring, free credit report cards, free identity theft protection, free live identity restoration support, and $50,000 in free identity theft insurance. These benefits are in addition to the free credit scores.
Consumers can purchase premium services if they so choose. The Pro and Platinum Protection plans provide $1 million in identity theft insurance in addition to daily monitoring of your data stored with the three main credit agencies (Equifax, Experian, and TransUnion). Your TransUnion credit record is monitored daily as part of our Basic plan. We also keep an eye on your Social Security number, public data, and dark web marketplaces for Platinum Protection subscribers. All of our paid services come with 24/7 support for addressing errors in credit reporting.
Credit Sesame uses what credit score?
TransUnion contributed the VantageScore® 3.0 scoring methodology, which is the basis for the credit score you may view on Credit Sesame. It is a true credit score, not the TransUnion Risk Score, which was only intended for educational purposes and was not utilized by lenders. TransUnion created the TransUnion Risk Score to provide users with a general understanding of their credit score.
VantageScore® 3.0 Scoring Model Specifications
According to Vantage, nearly 2,400 lenders and 20 of the top 25 financial institutions commercially use the VantageScore® 3.0 credit score, which was developed by the three credit bureaus as an alternative to other commercially used scores like FICO scoring models. Despite using a completely different scoring mechanism than FICO, VantageScore® 3.0 scores on the same 300–850 scale that customers are accustomed to.
The idea that lenders utilize a single credit score is untrue. In reality, there are numerous credit scoring models. There is no such thing as a single FICO score because there are numerous scoring models available to FICO, each of which has the potential to provide a distinct numerical value for your score.
Numerous FICO scores are used in particular industries, such as mortgage, credit cards, and auto loans.
It can be confusing to have so many different scores, however here are some suggestions
You can use theVantageScore® 3.0 score as a baseline to determine whether the score is increasing (improving) or decreasing because there are so many different credit scores and because consumers have no way of knowing what scoring model a lender would employ (getting worse).
Given that almost all credit scoring models consider the same five components of your credit—payment history, credit utilization, credit age, credit mix, and recent credit—improvements you see in one credit scoring model may also indicate improvements in other models.
Hot tip: When you apply for credit, a lender may see a different credit score from the one you see on Credit Sesame. That is typical. There are numerous credit scores available to you. Lenders don’t employ a single score. You actually have many FICO® scores.
Even if both of your scores are being checked at the same time, a mortgage lender will see one version while a credit card company will see another. There are particular industry-specific scores available to auto lenders and some other kinds of creditors as well. Even two lenders in the same class may obtain two different ratings on the same day because, despite periodic updates to credit scoring systems, lenders are not compelled to utilize the most recent version.
Our Credit Score Range Guide has further information on credit score variations.
In addition to the free credit score supplied by Credit Sesame, we advise you to evaluate any other free credit scores you may have access to, such as those provided by your bank or credit card provider. When your score unexpectedly drops, monitoring your credit score and credit report card can help you determine whether your credit profile is improving, what broad category you fall into, and even if you’ve been the victim of fraud or credit reporting problems.
Can I get a free annual credit report from Credit Sesame?
AnnualCreditReport.com is the only website that is permitted by law to yearly supply you with a free credit report each year from Equifax, Experian, and TransUnion. You are not entitled by law to a free credit score, and that website will not provide one for you.
Based on information from your TransUnion credit file, Credit Sesame provides a free credit report card. The free credit report card from Credit Sesame grades your performance in each of the significant factors that determine your score from A to F. (no matter which scoring model is used). They are enquiries or new accounts, file age, credit mix, payment history, and debt utilization.
The reason for one person’s low credit score may be late payments, while the reason for another person’s low credit score may be significant debt. To improve, you must be aware of your contributing variables. Our free credit report card can assist you in creating a strategy for improvement.
How is Credit Sesame funded?
Credit Sesame analyzes consumer data from TransUnion using sophisticated algorithms to show you where you can cut costs. We offer recommendations that are specific to your individual credit profile. We will advise you, for instance, if the data indicate that you are likely to be approved for a credit card with a lower APR than the one you are presently paying.
The financial institution pays us a modest commission if you decide to apply for a credit product through the Credit Sesame dashboard and your application is ultimately approved. Consumers are never charged anything.
