You’ve seen it before…the offers for a “free credit report”. Is there really anything for free these days?
Consumers are entitled to one free credit report each year to keep an eye on who and what is on the report. This is to keep things in check to avoid errors. There are many websites that offer this free credit report or score, but watch out!
Many of these “free” services make you give them a credit card number when you signup. Why would you need to give them a credit card number when you sign up? Simple. They are going to charge you if you don’t cancel some other “free trial” for credit monitoring. That’s how they can afford to give the credit report away for free and pay for that pretty website. They get you in the door with the free score/report and then they enroll you into their trial program. If you fail to cancel after 30 days or so…you’ll see some billing.
The chargeback rate for this is very high – most people forget what they ordered or agreeed to. Then the statement comes and they realize they forgot to cancel the trail offer. It’s a common tactic used which I feel is unfair and unethical. True – consumers have to be responsible for their actions, but the practice is widely frowned upon. The credit card companies don’t even really like it – because it causes them more headache with phone calls regarding charges people don’t remember making. So in most cases they have a chargeback agreement where they can refund the consumer if they call.
Do you really need credit monitoring? Probably not. There are numerous laws in place for consumer protection against fraud – that combined with your free annual credit report – you can monitor it yourself by doing an annual checkup. Then if you see any problems – there is a process for dispute. It can be a bit of a headache, but it’s worth working through.
So next time you want to take the bait – think twice about what you’re signing up for…
