Updated with new scores. There are many free credit scores are available nowadays, but how do they compare in real life? There are three major credit bureaus – TransUnion, Equifax, and Experian – which all may have slightly different information about you in their database. Here I keep track of all of my available “free” scores (some require specific credit card or other membership) while noting the bureau data used.

• Discover FICO (TransUnion) – FICO score available free to Discover card holders. Based on the FICO 08 scoring model. Updates monthly. I get mine from the Discover it® card that features 5% cash back in rotating categories and no annual fee.
• Barclaycard FICO (TransUnion) – FICO score available free to Barclaycard holders. Based on the FICO 08 scoring model. Updates sporadically, usually every 1-2 months. I get mine from the Barclaycard Arrival Plus(TM) World Elite MasterCard that offers great travel rewards.
• Credit Karma (TransUnion) – Educational credit score available free to members of CreditKarma.com. Based on the TransUnion New Account scoring model. Updates as often as once a week if you log in that frequently.
• Capital One (TransUnion)- Educational credit score available free to Capital One card holders. Based on the TransUnion New Account scoring model, it updates monthly. I get mine from the Capital One Quicksilver Cash Rewards card, which offers a flat 1.5% back on all purchases, $100 sign-up bonus when making $500 in purchases during the first three months, and no annual fee.
• Credit Sesame (Experian) – Educational credit score available free to members of CreditSesame.com. Based on the Experian National Equivalency scoring model. Updated up to once a month if you log in.
• Quizzle (Equifax) – Credit score available free to members of Quizzle.com. Based on the VantageScore 3.0 scoring model. Updated up to twice a year if you log in.

Based on the data points I have collected so far, it does support that the two FICO scores provided by the Discover and Barclaycard are the same (both are part of the FICO Score Access program and use FICO 08 formula) and the Credit Karma and Capital One scores are also the same (both use TransUnion New Account formula).

As for FICO vs. non-FICO, even though they may be based on the same TransUnion credit report and are in the rough approximate range, the scores given can differ by up to 30-50 points. In this individual case, the other non-FICO scores from Experian and Equifax are actually consistently closer to the reported TransUnion FICO scores.

American Express has just introduced two new rewards credit cards called the AmEx Everyday and AmEx Everyday Preferred. Note that these are NOT the same as the Blue Cash Everyday and Blue Cash Preferred cards. They are worth a look as they offer a unique rewards structure, although it can be a bit tricky to maximize their value. Here is my review and comparison with similar cards.

Both are credit cards that let you carry a balance, as opposed to charge cards that make you pay in full each month. However, they both earn “real” Membership Rewards points just like the traditional Gold or Platinum charge cards. This means the points can be transferred to 17 different airlines including British Airways, Delta, and Hawaiian Airlines and 5 hotel loyalty programs. Otherwise, you can get about 1 cent per point when used with their “Pay with Points” feature or if converted to gift cards (Home Depot, Gap/OldNavy/Banana, Zappos, etc). Here’s how they differ:

Amex Everyday Credit Card

• Sign-up bonus: 10,000 Membership Rewards points after you use your new Card to make $1,000 in purchases within the first 3 months.
• 2x Membership Rewards points at US supermarkets (up to $6k in purchases per year), 1x points on other purchases..
• Possible 20% bonus on points earned. Use your Card 20 or more times on purchases in a billing period and get 20% more points on those purchases (less returns and credits).
• No annual fee. No annual fee for additional cards.

Amex Everyday Preferred Credit Card

• Sign-up bonus: 15,000 Membership Rewards points after you use your new Card to make $1,000 in purchases within the first 3 months.
• 3x Membership Rewards points at US supermarkets (up to $6k in purchases per year), 2x points at US gas stations, 1x points on other purchases.
• Possible 50% bonus on points earned. Use your Card 30 or more times on purchases in a billing period and get 20% more points on those purchases (less returns and credits).
• $95 annual fee. No annual fee for additional cards.

In order to maximize your rewards earned, you’ll need to makes 20 purchases on the no annual fee version or 30 for the Preferred version. For most people, that means this card has to be your primary card. Otherwise, you may have to work a little to meet that hurdle. You might buy some small Amazon.com gift codes, take a few extra trips in that self-checkout line, spend some extra time pumping gas, or pay your cell phone bill in small chunks. The good news is that you can track your purchase count easily with the AmEx mobile app designed to work with this card.

Both cards also have a EMV smart chip, but unfortunately foreign transaction fees are not waived. I’m guessing that is because this is an “everyday spending” card and not a “travel rewards” card.

The problem is that in order to maximize the total value of this card, you’ll have to get more than 1 cent of value out of a Membership Rewards point. Because even with the boosts, at 1 cent per point the most value you could earn with the is 2.4% back on groceries (Everyday no annual fee) or 4.5% back on groceries and 3% back on gas (Everyday Preferred $95 annual fee). Yet the existing Blue Cash Everyday card already gets you 3% cash back on groceries and 2% cash back on gas with no annual fee, and the Blue Cash Preferred gets you 6% back on gas and 3% back on gas with a $75 annual fee.

However, if you can get around 1.5 cents of of value out of a Membership Rewards point by converting it to airline miles, this card becomes better than the Blue Cash cards. The numbers then work out to 3.6% back and 6.75% back on groceries, respectively. That’s pretty solid. (Break-even value is 1.25-1.33 cents per point.) So while it is not marketed as a travel rewards card, it is really only best for people who can redeem their points efficiently via airline miles. Make sense? 🙂

Square, known for helping people accept credit cards with smartphones, has expanded another feature called Square Cash. Yes, it’s yet another attempt at simplifying person-to-person payments, but this time all you need is e-mail and a debit card number. No accounts to open, no passwords to remember, and no fees either.

To request money, just send an e-mail with the following fields:

To: [one or more email addresses]
Cc: [email protected]
Subject: You can write whatever but include $ [amount]

To send money, just send an e-mail with the following fields:

To: [one or more email addresses]
Cc: [email protected]
Subject: $ [amount]

That’s it, the Square website walks people through the rest. I found it pretty interesting that you can both deposit and withdraw money via debit card. If this stays fee-free then I could actually see myself using this between friends and family. iPhone/Android app also available, but not necessary (it just helps you compose the e-mail).

Right now, Square Cash will give you $1 to try it out. Your debit card number will then be associated with the e-mail address you provided from then on for future payments (unless you change it).

Tonight, I got several email confirmations for separate €25 Paypal payments to “Skype Communications Sarl”. Thing is, I haven’t used Skype in years. At first I thought it was just another phishing attempt. But the domain on the e-mail checked out. I logged into my account (manually) and saw that multiple $35 charges did indeed go through. How? Was my PayPal account hacked? I changed my password, and then another unauthorized payment went through!

Long story short, it was my Skype account that was hacked. I didn’t even know this, but PayPal has a program of “preapproved” payments where a merchant can repeatedly charge your account without the need to type in your PayPal password. This is meant for monthly subscriptions and the sort. Although I have bought credit from Skype before, I don’t ever recall signing up for any of these subscription-style plans at any merchant. My suspicion is that it was buried somewhere into a default checkbox that I didn’t undo, or worse it was just hidden in the terms and conditions fine print. (I am usually really careful about this sort of thing, so I am quite mad at myself!)

Lesson #1: If you use PayPal at all, check your preapproved merchant list immediately. To find this list, log into your account and then go to My Account > Profile > My money > My preapproved payments. You should see a screen like this:

My recommendation is to make every single one inactive immediately. If not, you should treat your accounts at those merchants as carefully as your bank accounts, because they literally have access to every linked bank account and credit card at PayPal. I had no idea that buying one joke bumper sticker from Zazzle in 2009 could be the equivalent of an open wallet.

Apparently, I’ve been vulnerable for years but I never noticed until now. I bet there are a lot of abandoned Skype accounts with simple or unsecure passwords. The criminals gain access, change the linked e-mail and password so the original owner has no access, and can then sell or use the Skype credit. There are also several other reports of unauthorized Skype/Paypal charges on the Skype forums.

Lesson #2: Never use PayPal to buy things online instead of a credit card unless absolutely necessary, usually for eBay. The big thing is that Paypal is NOT regulated like banks or credit cards. There is no federal law that says you are not liable for unauthorized PayPal charges. Instead, they just claim that you are “protected” when in reality they have all the power to decide if you ever see your money again. I had to open a dispute with PayPal online as they don’t have 24/7 customer service (again, unlike credit cards). If I had just used a credit card, even if the number was stolen, I could be confident that I would get my money back in a timely manner. I’ve already had other bad experiences with PayPal, but we’ll see what happens.