Free Credit Scores Possible at Key Times

The U.S. Senate's approval of a far-reaching financial regulatory bill carries great news for consumers in an increasingly credit-sensitive world.

Contained in the bill is a requirement that companies provide you with the credit score they used to deny you credit, impose a higher interest rate on your loan or prevent you from being hired for a job.

The legislation still needs to be reconciled with a similar House bill that doesn't include the provision.

Currently, you're entitled by law to receive a free credit report every 12 months from each of the three national credit bureaus. But your free credit report does not include a free credit score.

Your credit report is important to have because your credit score reflects the information in the report — whether you've paid your bills on time, whether you're carrying too much debt, etc.

Currently, if you want to know your credit score, in most cases you have to buy it. You have to fork over $15.95 to get your FICO score, which is the dominant score used by lenders. The score range is 300-850.

Credit bureaus also sell their own proprietary credit scores. There are a limited number of circumstances under which you can get your credit score for free:

• Mortgage lenders must give consumers the credit scores they used in deciding whether to give them a loan.
• Some websites will give consumers a free credit score, but it's not the FICO score. Still, these scores can give you an idea of the factors that go into calculating your score and how you can improve your score.

Starting in January, lenders also will be required to give anyone who is offered credit at less than the best interest rate a copy of the credit score used in making that decision.

The credit score is critical in determining what interest rate you pay and whether you get a loan at all.