• CreditKarma.com: Gives you your TransUnion score. Advertising-supported.
• E-Loan: Experian score. Scroll down to "One-Time Credit Snapshots" and "Free Credit Score (Credit Score Only)"
• Prosper: Experian score. Information on how to do it here.
• LendingClub: Gives you a letter grade score, which you can use this chart to translate to a numerical score.
• Washington Mutual Credit Cards: Get your Transunion score when you log in.

• Another way these are useful is that if you check in periodically and keep track of the results, you can see how your score fluctuates and try to correlate its delta with any credit-related actions you took during that time. But, if you're shopping for a loan or a mortgage, you will definitely want to pony up the cash and get your real FICO score.

  [via MyMoneyBlog]

In fact, the WSJ says that at the peak of the subprime boom in 2005 over half of the subprime loans went to people with good credit.

By 2006, 61% of subprime loans were going to people with good or even excellent credit scores.

Why?

The surprisingly high number of subprime loans among more credit-worthy borrowers shows how far such mortgages have spread into the economy — including middle-class and wealthy communities where they once were scarce. They also affirm that thousands of borrowers took out loans — perhaps foolishly — with little or no documentation, or no down payment, or without the income to qualify for a conventional loan of the size they wanted.

The analysis also raises pointed questions about the practices of major mortgage lenders. Many borrowers whose credit scores might have qualified them for more conventional loans say they were pushed into risky subprime loans. They say lenders or brokers aggressively marketed the loans, offering easier and faster approvals — and playing down or hiding the onerous price paid over the long haul in higher interest rates or stricter repayment terms.

So why did the borrowers fall for it?

Many borrowers figured they would refinance in a few years before the rate on their loan moved higher — but falling home prices and tighter credit standards in the past year have suddenly made that unrealistic in many cases. "Brokers and agents were telling" borrowers with high credit scores for the past several years "that it was OK" to get subprime loans, "and borrowers were wanting to take on more debt," says Mark Carrington, director, analytical sales and support at First American LoanPerformance.

Subprime Debacle Traps Even Very Credit-Worthy [Wall Street Journal]
(Photo:Getty)

Starting November 1, Experian will allow victims of identity theft to freeze and thaw their accounts for free. Others will have access to the same services, though the charge will vary by state.

Under a law that took effect in July, District residents can place, lift or remove a freeze for $10. Maryland's law will require consumers to pay just $5, but it does not go into effect until January. Virginia has no credit freeze law.

At least 39 states and the District have laws that allow or will allow consumers to freeze their credit files, but many do not take effect until 2008 or 2009.

The credit reporting agencies' newfound willingness to offer credit freezes is a boon to consumers, one made all the more potent by regularly checking your credit report for free.

Agency to Offer Credit Freezes [Washington Post]
(Photo: eva101)

A change can stem from late payments of any kind, a drop in your credit score or the addition of new lines of credit. Bryan found out limits on three cards were actually cut after he took out a home equity loan to pay off some debt.

"Taking out the home equity loan may have possibly been the factor that lowered the credit line," Bryan said.

Consumer advocates say lowering limits is a better way to manage risk than hiking interest rates, but these cuts can lead to trouble if you are not aware and prepared.

"If you don't know your credit line has been dropped, you could go over the limit. And, with most card issuers, that means you'll pay a hefty over the limit fee," Gerri Detweiler, a credit card expert, said.

Some Companies Lowering Credit Card Limits [Chicago Tribune]
(Photo: mojojornjorn)

Utilization basically boils down to this: If you've got a card with a $5,000 credit limit and you're carrying a $4,750 balance, you've got a 95 percent utilization rate. FICO's scoring system — which runs from 300 to about 850 — subtracts points for high ratios. The rationale is that people who are maxing out their cards are perceived as riskier and more likely to fall behind on payments.

On the other hand, say you're carrying a $500 balance on that same card — a 10 percent utilization rate. The FICO system rewards you with extra points because of your moderate and responsible use of available credit.

When a creditor withholds or neglects to report your limit, the FICO software cannot compute a utilization ratio. Typically, it either doesn't use that credit line to compute the score or substitutes your highest reported balance on the account for your actual limit.

A Boost for Credit Scores [Washington Post]
(Photo: garibaldi)

One interesting part of the interview delt with new "alternative" credit scores:

Something right around the corner and clearly here to stay are "alternative credit scores." These are scores, such as the FICO Expansion score, that lenders can use to help assess the risk of a consumer who has had no credit relationships. It could be a teenager applying for credit for the first time, a recent immigrant, a spouse whose partner is gone for whatever reason and has never had credit in his or her own name. Now lenders are beginning to use alternative credit scores in larger and larger numbers. So, for consumers who are just starting out managing credit, the day may soon arrive when instead of filling out long applications and expecting high interest rates and low credit limits, consumers may be treated with the same speed and convenience as the rest of the people who already have an established credit history and a good credit rating.

Credit Scores Demystified [Bankrate]

I emailed you about 2 weeks ago complaining that Progressive Insurance only runs it's credit check every 3 years. Knowing my credit history improved, I thought this unfair and called them.

Since them I received an updated bill and it was $67.50 cheaper (for 6 months)—just based on a new credit check! Obviously if readers credit history worsens, wouldn't recommend an updated credit check, but for most people, if you don't ask for the current credit check, you could be losing dollars.

(Photo:foundphotoslj)

Hello. I read the consumerist every day and since I turn 18 later on this month I wanted to ask how do I start a credit score or getting credit or a loan to start my credit score?

Thank you for your time. :D

• Secured Credit: With secured credit you put down a deposit. If you have no credit history, this is a way to get one. Make sure not to use a shady bank, and make sure the bank is reporting your payment history. This is probably your least attractive option.

• Becoming an authorized user on your parent's account: This can establish a payment history for you if the bank reports it. You'll want to ask.

• Signing up with a credit card that markets to students: Credit card companies like to offer credit to students in the hopes that they'll keep the card after they graduate.They also probably want you to spend a bunch of money. Don't do that part.

To establish good credit, don't apply for a ton of cards at once. Get one and establish a good payment record. Pay off your balance every month to avoid paying interest and getting yourself into debt. Credit card debt is bad. Bad. Bad. Bad.

All things considered, using a credit card wisely is an excellent way to start a credit history. Just make sure it's a good credit history. —MEGHANN MARCO

First Credit Card Tips [Bankrate]
(Photo: hey-gem)

The new version provides collectors with notification when a debtor's ability to pay appears to be improving.
This is especially critical for financial services organizations looking to optimize late stage and charged-off receivables.
The introduction of additional trigger criteria and attributes within Collection Triggers increases the ability for companies to act quickly when new information is available. Subscribers to Collection Triggers are notified within 24 hours when the financial status of a consumer within their collection portfolio has improved.

Experian Now Empowers Collectors With 'Improved Ability to Pay' Consumer Intelligence [PRNewswire]

Unfortunately, companies aren't always equipped to efficiently handle email inquiries, especially if you're responding to a bulk email. Pull your thumb out your mouth and pick up the phone. You might be surprised at the results. — BEN POPKEN

Previously: Help! Gambling Site Threatening To Ruin My Credit

Then, one day, Max read the provisions of the Fair Credit in Reporting Act (FCRA). The FCRA (in so many words) dictates that every person has the right to dispute the accuracy or validity of any item on their credit report with the three credit reporting bureaus (Equifax, Experian, and Transunion). From the date that each bureau receives notice of the dispute, the bureau has 30 days to investigate the dispute. If, at the conclusion of 30 days, if the bureau cannot verify the accuracy of the information in that person's credit report, or the investigation just doesn't get completed in time, the offending item is automatically deleted. Gone. Done. Case closed.
...
Max started his journey with a credit score in the low 500s, and now, in a matter of months, it had crested above 600. Eventually, and through great discipline, Max managed to eliminate every negative item on his credit report, simply by asking for proof that they belonged there in the first place.

As a result, Max's credit score improved to the point where he was able to buy a new car and move into his first house. Before losing contact with Max, I could tell that he had learned from the foolish mistakes of his youth and appreciated the opportunity to reboot his credit history.

How to Lawfully Reset Your Credit History [Make Your Nut]
(Photo: metavariable)

streetlamp: This has been about the 3rd or 4th email
streetlamp: The first one which I responded to they never responded back
streetlamp: But this is the first time they have included a threat of bad credit
streetlamp: Now on my bank statement it says that $20 was sent because I figured maybe my bank was aware it was a gambling site and froze the payment
benpopken: Tell 'em to piss off
streetlamp: That was my latest email to them
streetlamp: But can they do anything about my credit?
benpopken: Even if they ding your credit slightly, it's probably not going to affect your life. You can easily dispute it, and get it removed
streetlamp: Very well then, I just have a very good credit for a 18 year old and that has been the only part that has worried me
benpopken: Do you have a credit card?
streetlamp: 2
streetlamp: and a debit card
benpopken: Do you pay them off in full every month?
streetlamp: Indeed I do
benpopken: Do you have, or are planning to get, a mortgage or any other kind of loan?
streetlamp: I highly doubt that at least while im in college
benpopken: Then you can set up a filter to direct their email to your trash and forget about it
benpopken: Check your credit report in a few months and if they did do anything, dispute it saying they had no basis and it will probably get removed
streetlamp: Okay, sounds good
streetlamp: I never imagined I would ever need to contact you guys but you were the first to pop into my head when I saw this latest email
benpopken: We like to help!

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