Q&A: How do the companies advertising free credit reports make money?

by tyankee7 on May 7, 2012

Post your WANT. It’s like Craigslist, but reversed. And really different. At Ubokia, you’re the rockstar. Post exactly what you want and sellers respond to you. Only talk to sellers you choose.

Question by Charley M: How do the companies advertising free credit reports make money?
What is their business model? They advertise a lot on the Internet and TV, they must be profitable.

Best answer:

Answer by Daffy
When people check their credit report, it will advertise things after you get the report such as “improve your credit score here” or “protect your identity”…they charge to do these things and many people have said that these things they charge you for are useless and dont really improve or protect anything, just an organized racket. Some of the things they advertise may be affiliate companies, in which the free credit report company refers you to another company, and they get a commission for the referral. In other words, they spend money on advertising to get you to go to the site, they get way more visitors than they would if it wasnt advertised as free. So they use the “free” theme to get you there, where they can pitch other things to you which are not free.

What do you think? Answer below!

{ 2 comments… read them below or add one }

psucunningham May 7, 2012 at 7:04 am

Ever notice the FreeCreditReport.com commercials always end with “offer applies with enrollment in Triple Advantage” ??

Triple Advantage is a service where they charge $ 10/month to your credit card… and in return, you get your report from the 3 bureaus each month. I’ll go out on a limb and assume there’s some ridiculous fee for cancelling the service.

The only FREE site is AnnualCreditReport.com (or you can go to each bureau’s site individually). It’s run by one of the bureaus, and allows you to get your credit report from each of the bureaus absolutely free once per year (as mandated by the government).

D Elms May 7, 2012 at 7:33 am

Because they get people to go, thinking they will learn their credit score, but that is something different from the credit report. So then they see they have to pay for the credit score and some % must go ahead and do that, that makes it worthwhile.

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