TransUnion Settlement to Let You Get Free Credit Score

According to a MarketWatch report yesterday, TransUnion, one of the three major credit report agencies, has settled a class action lawsuit which could mean free credit score and credit monitoring service for up to 9 months for millions. The lawsuit accused that TransUnion sold customer information to third parties for targeted marketing effort, an allegation that TransUnion denied.

Under the settlement, which still needs court approval, TransUnion agrees to provide about 150 million Americans three options:

1. Six months of TransUnion’s credit-monitoring service for free, giving consumers unlimited access to their credit reports and scores, and email notifications when changes occur on their credit reports. The settlement values this service at $59.75.
2. Nine months of the credit-monitoring service, plus access to the credit scores used in insurance decisions, and TransUnion’s mortgage simulator service, by which consumers can see how their credit score affects their mortgage rate. Value: $115.50.

The third option lets consumers take cash instead of the free services, but no payment will be made in at least two years, according to the MarketWatch report.

But don’t get too excited about the free credit score because it isn’t the FICO score that most lenders use when assessing one’s credit worthiness. It’s TransUnion’s proprietary score, which uses a difference scale than FICO score (could it be VantageScore which ranges from 501 to 990?). But still a free service won’t hurt, especially for those who will seek a loan in the near future.

If you want to participate in the settlement, go to ListClassAction.com (looks like the site is down when I last checked it) and register before June 16, or call (866) 416-3470.

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