Credit score apps are a popular way to track credit scores—but they actually aren’t that great. According to recent Consumer Reports analysis, these apps use scores that differ from the ones lenders actually use, they scrape an unnecessary amount of personal information, and they upsell you on credit-monitoring information you can already get for free.
What you should know about popular credit score apps
Consumer Reports looked at five popular apps—Credit Karma, Credit Sesame, Experian Credit Report, myFICO, and TransUnion: Score & Report—and found that:
Four of the five provide users with credit scores that differ from those that lenders actually use to evaluate consumers’ creditworthiness (Credit Karma, Credit Sesame, Experian Credit Report, and TransUnion: Score & Report).
Four of the five often charge users for access to their credit reports—information that consumers are legally entitled to receive free of charge (Credit Sesame, Experian Credit Report, myFICO, and TransUnion: Score & Report).
All five appear to collect more personal data from users than what the apps need to perform their core functions, and all appear to share data beyond parties named in their privacy policies
How credit scores used in apps differ from those used by lenders
The free version of these credit score apps tend to offer just one credit score, even though are dozens of versions available. In the case of the apps surveyed by Consumer Reports, three of the apps use VantageScore credit scores rather than FICO scores, which are used in 90% of all lending decisions. MyFICO does offer an array of FICO scores used by lenders, but you have to spend $20 per month to access them. Experian Credit Report provides the more commonly-used FICO 8 score for free, but to access other FICO scores, they charge you $20 per month.
All of this information can be of limited value, however. Sure, you could pay to hunt down just a few of the dozens of credit scores out there, but it won’t necessarily tell you what a lender might be using to determine your creditworthiness. (There are dozens of FICO scores used for various purposes, like mortgages or car loans.)
If you’re worried about your credit score dropping, it might be easier to focus on good credit behavior while keeping an eye on your credit reports from the big bureaus Equifax, TransUnion, and Experian, which these credit scores are based on. After all, a credit score just gives you a three-digit number, it doesn’t tell you why your credit score has changed.
Even the free versions of these app have trade-offs
To use the free version of these apps, you still have to give these companies permission to collect your personal data, including data from other sources outside the app. According to Consumer Reports, this allows these companies to build up a profile about where you live, work, socialize, and shop. For example, Credit Karma’s data collection policy includes information from “local business reviews or social media posts,” and MyFICO’s agreement grants them permission to access “census data or real estate records.”
Added to that, these apps will also try to upsell you on paid subscriptions or for other financial products that Consumer Reports describes as “not necessarily in the users’ best interests,” like credit reports that you can already get for free.
Where to get your credit scores and reports for free
Many banks or credit card companies already provide FICO scores on their sites or apps. You’re also entitled to a free annual credit report from each credit bureau, which can be found on this website. (During the pandemic these rules were loosened: Until April 2022, you can get a report from each bureau every week for free.) Otherwise, the best way to protect your credit score is through good credit behavior. For more on that, check out this Lifehacker post.