A Free Credit Report With No Strings Attached. Honest

The word “free” appears in super-sized letters a couple of times at the top of TransUnion’s website. Consumers, the company says, can get their credit score free with just a couple of clicks and also get a credit report for the low, low price of $1. To fully appreciate this bargain, it’s important that you ignore the much smaller text near the bottom of the page. It tells consumers they will be enrolled in a credit subscription service that costs $17.95 per month unless they actively cancel the “trial” within a week. TransUnion is not alone here. The big credit bureaus, including Equifax and Experian, have been using the lure of a “free” credit report to coax consumers into these subscription services for a long time.

On Wednesday, startup Credit Karma began offering a full credit report that is truly free. It is letting consumers pull a free report once a week, if they so choose. After you sign up, there’s no pricey subscription service to cancel or onslaught of nagging e-mails to delete. “Getting your credit report has been a bit of an antagonistic process,” says Ken Lin, the chief executive officer and founder of Credit Karma. “Our goal is to make things easier so that it’s three clicks and you’re done.”