Rebuilding Bad Credit And Reviewing A Credit Score–Consumers May Be Offered A Free Score But At What Cost?

When it comes to rebuilding bad credit it has often been stated that knowing where one stands is one of the first steps, along with reducing debt, that consumers have to take and there are new rules which some consumers are hearing of that could offer them a free credit score from a lender, who will obviously have one of the more accurate scores that can be found by a consumer. There are some websites that offer to sell a free credit score to men and women looking for more information on their credit life, but there has been some debate over whether these scores are what a bank or lender may see if a consumer is applying for credit.

Yet, new rules require that a lender explain why they may have rejected a consumer for a particular line of credit, like a loan or credit card, and this could offer access to a credit score and reasons as to why a consumer may have been denied a borrowing opportunity or may have received an interest rate or terms that are deemed unfavorable. Getting rejected by a credit card or loan application is not the best route that a consumer can take when it comes to getting their credit score, as consumers who may have multiple inquiries by filling out numerous applications for lines of credit may find that this also does damage to their credit scores well.

There are also those who argue whether a consumer will even necessarily need to know their credit score in many cases due to the fact that a credit history can be much more useful in terms of establishing where an individual happens to be in their financial life. Debts that may have been forgotten, mistakes on a credit report, or other factors in the financial life of a particular individual all impact their credit score and, as a result will need to be addressed before a more positive score can be acquired, so consumers might not necessarily need to focus on their credit score throughout the bad credit repair process, especially now that those who are attempting to build a better financial history will need to make sure that their credit report is in good order and that they have continued to establish an excellent payment record.

Obviously, this new rule will lead to disclosure if a consumer works hard to repair their bad credit score, correct any mistakes on their credit report, and simply pay down debts which could cause their credit utilization ratio to be quite high, and if a consumer is denied after implementing these practices, they will find out what their score is and why they may not have achieved the financial position they are seeking. While there’s nothing wrong with getting a credit score, as long as the consumer knows it is accurate and will be the score that a lender sees when considering them for a credit card or loan, reviewing one’s credit history, paying off debts, and simply establishing financial practices that lead to timely payments usually outweigh the need for reviewing a credit score during the bad credit repair process.