Earlier this year we brought you the news of the new Risk-Based Pricing Rule which requires creditors to disclose your credit score to you when that score is used in setting or adjusting credit terms, or to deny you credit. Now the Federal Trade Commission and the Federal Reserve Board have announced final changes to this new law.
The most important change for consumers is the requirement that lenders must now disclose to you when they are using a credit score that was developed specifically for that business. This is important because there are many credit scoring models used in the lending industry. The credit scores available to us now (for a price) are not the same scores that lenders use. In addition, right now, the only credit score we have a right to see is the score used when we apply for a mortgage.
You can pay for a copy of your FICO score, which is the credit score lenders most commonly use, by visiting MyFICO.com. The credit bureaus TransUnion and Equifax both offer FICO scores through the FICO website. Experian does not.
While waiting for the new law to go into effect, be sure to take advantage of obtaining your free credit report from www.annualcreditreport.com. You are entitled to one free report, each year, from each one of the three major credit bureaus. The reports do not come with your credit score; however you can add it on for, about, $10. Visit our resource page to learn more about your credit report and your credit score.
The new rules go into effect July 21, 2011.