U.S. federal regulators are taking a bigger interest in individual credit scores since the Dodd-Frank Wall Street Reform and Consumer Protection Act went into effect last year. They made a proposal on Tuesday, March 1, 2011, that would give people more access to free credit score reports. The goal is for people to know the most accurate information about their credit so they know how it is affecting them.
In July 2011, when credit scores are obtained to enforce customers to adhere to particular credit conditions, lenders would be obliged to make known the credit scores to customers. This makes more work for the lender but the U.S. federal regulators may think it is a necessary step to help Americans become more conscious of their decisions to spend.
The proposal is stirring things up for lenders. The recent proposal would also require a lender to give the borrower a free credit score, if the borrower is denied credit. They would also have to provide scores for borrowers, who have their existing credit terms revised because of disagreeable credit scores. The potential regulation could take the mystery out of why some people are denied credit or have to pay ungodly interest charges.
At present, most people are shocked to find out that they do not always see the credit scores that borrowers use. When someone purchases a credit score, he or she may only see a possibility of what the lender is viewing. The U.S. federal regulators’ proposal is seeking to change that so that the public knows exactly what they are getting themselves into.
Senior Analyst Susan Lou at www.Credit-Land.com says, “A credit history has a huge impact on the financial status of a person.” Having more access to credit scores could help some people change what they need to in order to improve their financial status.
If Americans have more access to free credit scores, they may make more responsible decisions concerning their credit. It seems that the U.S. federal regulators think that knowledge will be power for American consumers, who can obtain free credit scores.