Citibank to Provide Free Credit Scores to Cardholders
Citibank will become the largest credit card issuer to provide free credit scores to their Citi credit card customers.
The bank will begin providing these scores on a monthly basis beginning in January. The scores will only be available online.
Citi will provide the FICO score which is based on credit report information from Equifax.
Citibank is the fourth largest credit card issuer by purchase volume. The bank joins Discover, Barclay, Pentagon Federal and First National Bank of Nebraska in providing free credit scores to their cardholders.
Lenders use credit scores to assess the risk level of a borrower. The score affects the credit line and interest rate charged by the lender.
The idea of free credit scores has also caught the eye of lawmakers. A proposed bill in the United States Senate would mandate all consumers have access to free annual credit scores. The Stop Errors in Credit Use and Reporting (SECURE) Act is designed to reduce the problems consumers experience through errors in their scores.
Bill S.2224 is sponsored by Senators Brian Schatz (D-Hawai‘i), Sherrod Brown (D-Ohio), Bernie Sanders (I-Vt.), Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.). It would give consumers “access to meaningful credit scores free of charge annually.”