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Experian Stops Consumer FICO Scores

As of February 14, 2009, Experian has decided that it will no longer allow Fair Isaac Corporation (FICO) to provide their Experian-based FICO score directly to consumers through myfico.com, nor will Experian provide the Experian-derived FICO score directly to consumers. The curious thing is that Experian is still providing FICO scores to its business clients for scoring consumer credit. Since the FICO score is used by most lenders, and is an integral part of their underwriting systems, Experian has worked out an agreement with Fair Isaac to continue providing this score to businesses. But, why not to consumers?

It seems that Experian and Fair Isaac are going through a bit of a legal squabble. In 2006, Fair Isaac filed a lawsuit against Equifax, Transunion, and Experian arguing that VantageScore, the credit scoring system developed by the three credit reporting agencies, represented unfair competition. Now Fair Isaac is playing dumb. When asked why Experian made this decision, they have answered: (quote)Their reasons are not clear to us at this time and we do not believe it appropriate to speculate (end quote).

Meanwhile, Experian continues to tout the benefits of its alternative credit scores, VantageScore and PLUS Score. Since Experian continues to sell FICO scores to its business clients, the only reason they have to keep Fair Isaac from doing so themselves is to punish them-- by keeping Fair Isaac from making money off selling Experian-derived credit scores to consumers.

Does this mean that you can no longer get your FICO score? Not at all. You can still obtain your FICO score from your bank or other institution that still gets it from Experian; you just cannot continue to get it directly from myfico.com-- or from Experian, at least for the time being. Your credit score is not one of the items that is included in the Fair Credit Reporting Act, which only gives you the right to receive a free annual credit report. If it angers you that you have to jump through hoops to get your credit score too, then let the credit reporting agencies know about it. Better yet, let the U.S. Congress know about it.

Since your credit score is such an important factor in obtaining loans, or even insurance and employment, there is a compelling argument for having ready access to it, for free, just like your credit report. Now that there is this legal tiff between Experian and Fair Isaac complicating matters, there is even more of a reason for outrage. I am quite frustrated about this myself, and just letting everyone know about it!