Seattle, WA / March 26, 2014 / A free credit score plays a major roll in lowering your personal delinquency rate and stopping fraud, according to a new study released by the Journal of Consumer Affairs.
Geoff Neary, a researcher from the Journal of Consumer Affairs says "people are much more likely to acquire the life they want, with a free credit score report. Participants in our study were more likely to raise their credit scores allowing them much more flexibility to purchase homes, automobiles, and take vacations. At the same time experiencing far less identity theft, and fraud."
As of now, there is no mandatory service requiring banks and credit card companies to supply consumers with a free credit score, but fortunately there are some services that do. Click here to see your Free Credit Score.
Although there is pressure coming from government officials to make it mandatory for credit card companies to provide a free credit score, nothing has been made official. In the article from the Journal of Consumer Affairs, it was found that there are already many very effective online services who will provide a free credit score to consumers, and in some cases, scores from all three bureaus. Click here to Access a Free Credit Score from all three bureaus.
What to Look for when accessing a free credit score service
"Some services charge as much as $50 monthly to keep tabs on your credit, which can total $600 annually, but there are free alternatives available. When looking for a free credit score provider, it is always good to consider a few things... "
- Does the service provide a report from all three reporting services? ( Equifax, Experian, and TransUnion).
- Does the free credit score service offer products that will detect fraud?
Click here to see the free credit score service recommend by consumers in the Journal's study.
What was found when people accessed a free credit score service regularly.
"It was a no brainer, the people who used the free credit score service really turned it around," stated Geoff Neary.
"When consumers can access their scores anytime and anywhere, things like fraud were stopped in its tracks."
- Lower Personal Delinquency rate.
- Higher Credit Scores (710-780)
- Approved for more credit cards.
- Lower Mortgage Rates.
- More Likely Approved for rental properties.
- Acquired Loans with greater ease.
- Were Overall Happier and Healthier.
- Saw fraud and identity theft was slowed on a average of 4-1 - when people used a free credit score service.
"In 2013 alone, $21 billion was lost due to identity theft, up from $10 billion in 2010. With statistics like these, there is no question identity theft and credit fraud is rising at an exponential rate. The question now becomes, what can be done about it, and how can people protect themselves? We discovered that a free credit score check, dramatically lowered the chances of un-detected fraud and ID theft" stated Neary. Click here to see your Free Credit Score.
More Stats found in this Study
In general, higher credit scores equate to lower interest rates, meaning less cash you’ll have to fork over during the life of a loan. Credit experts think any score above 720 will get you the optimum interest rate. The national average score is 723, and 58% of Americans have a score higher than 700. According to the research uncovered by the JCA, having access to your free credit score assures you can stay on top of your credit score, but it is a frontline defense against fraud and identity theft.
Click here to see the free credit score service recommend by consumers in the Journal's study.
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Resources:
http://en.wikipedia.org/wiki/Credit_score
http://www.usa.gov/topics/money/credit/credit-reports/bureaus-scoring.shtml
http://www.consumerfinance.gov/
http://onlinelibrary.wiley.com/