Consumers may be aware of changes that are coming and the area of disclosing credit scores to consumers, as there are some requirements that are already in place which may make getting a consumer’s credit score much easier and, as a result, men and women may find out where they stand in terms of their financial life much easier, particularly when certain actions take place. As an example, consumers who apply for credit and may be denied or receive unfavorable rates will have to be given their credit score and certain pieces of information that may help them understand why they are not receiving the best rate possible.
Hopefully, this will lead to more bad credit repair pursuits by consumers, but when it comes to getting these credit scores consumers need to understand that there are certain aspects of these rules that may need to be understood before a consumer can use this resource to begin implementing smarter financial habits and building a better credit history. As an example, consumers who are attempting to get a personal loan, mortgage, or even credit card may be deemed as a credit risk and, as a result, may have to disclose a consumer’s score. Yet, there are also some reports that say even if a consumer may receive a mortgage or qualify for a credit card but are nit given an interest rate that is optimal, this information will be disclosed to consumers as to not only where they stand in terms of their scoring but why they may have been denied.
Understandably, this will not apply to all activities that a consumer may undertake, as someone who may get an excellent rate on their credit card will not fall into this category where a lender necessarily has to disclose their credit score. Yet, what advisers want consumers to remember when these rule changes fully take effect is that a credit score is not the only aspect of a consumer’s financial life, but simply a consumer needs to know what range they fall into when it comes to their score, meaning are they in a credit score range where with a little work they may be able to receive much lower rates than they currently have or if they are near the bad credit area of the spectrum.
Consumers need to also remember that a score is a reflection of their credit history and it may be more important to review a credit report rather than simply seeking out a credit score, because a consumer may find that there are errors on their credit report that may be hindering their forward progress in terms of building a better credit score. However, consumers need to understand that these new changes in the rules of disclosure do not mean they can simply get a free credit score, but rather banks will be required to disclose this information if unfavorable terms or a denial of an application for a line of credit takes place.
Yet again, some consumers may be interested to know what their credit score may be but if bad credit repair and establishing a firmer financial ground so that a consumer can get more favorable rates is their goal, getting out of debt and then reviewing one’s credit report may be more helpful than only seeking out their credit score in the beginning.