The government's new credit score disclosure rule is a good news for the loan applicants!! This new disclosure will now mean that more consumers will get a free peek at their credit scores starting from July 21, 2011. It is expected that the individual creditors may do more than that and provide a credit score disclosure to every applicant.
Check out the below mentioned details in order to know when to expect a credit score disclosure:
Auto loan: If you receive a less-than-stellar APR because of credit score, your lender will be liable for giving you free credit score disclosure. This is because you received less than the favorable terms due to your credit score.
Auto insurance: Your insurer may ask you to pay a higher premium based on a credit-based insurance score. But this does not mean that you will get a free credit score. This is because insurance scores are not considered as credit scores under the new rules.
Mortgage: If you don't receive mortgage from a lender due to credit scores, he will be liable to disclose your credit scores. However, even though you receive a mortgage, you may still get a free disclosure of your credit scores under other rules.
Personal loan: If you apply for a personal loan and denied due to your credit score, then the lender is liable to provide you with a free disclosure of your credit score. This is because your lender took an adverse action against you because of your credit score.
Credit card: If you receive the best rates depending upon the high credit score, then you won't receive a free disclosure of credit score. If you don't get the best rates, then you are entitled to receive a free disclosure of credit scores.
In today's world where credit requirements are tightening, more and more people will be getting denied when they apply for a loan. The credit score disclosure will, thus, have a bigger impact for the consumers.