As of January 1, 2011, there have been changes made to the federal law that will allow consumers even more access to their credit score for free. A federal regulation recently took place that requires card issues and other lenders to provide their applicants with the exact reason why they received a certain interest rate on a new credit card or loan. This new rule will apply to anyone who does not receive the best rate offered by the card or loan company. For example, if you apply for the Discover More card that offers a low rate of 11.99% and you don’t receive that rate, then you will be entitled to a free copy of your credit score.
For the first time, consumers now have a legal right to find out why you didn’t receive a certain rate. You will be able to receive your credit report so you can determine what when wrong and why you didn’t receive the best possible rate offered. This new law is expected to provide millions of people with their FICO score from lenders. In the United States the most common score used is a FICO score. Typically, consumers pay anywhere from $7 to $20 to receive their credit score from FICO or another credit score provider.
Basics About Your Credit Score
Your credit history is a detailed record of your credit activity. It captures your ability to handle credit and make timely payments. Having a good credit history will only benefit you when you decide to apply for a loan or a line of credit. All consumers have the right to request a free credit report from each of the three major credit agencies every year. In compliance with the Fair Credit Reporting Act (FCRA), Equifax, Experian and TransUnion have set up a central website and a toll-free telephone number through which you can order your free annual report. To order, visit annualcreditreport.com or call (877) 322-8228.
Your credit history is kept on file by credit bureaus. Your credit report could include any of the following:
- List of credit card accounts
- How promptly you’ve paid off credit cards and loans
- How well you have handled other bills, such as rent and utilities
- Your checking and savings account histories, including bounced checks
- Your total outstanding debts
- How much credit you still have available on your cards
No comments yet.