Credit Card Relief

A new Federal Law is helping consumers get a better understanding of their credit scores. Starting July 21st 2011, anyone who gets turned down for new lines of credit will be able to find out why... and they'll be able to do it for free.

The new law means that lenders will have to explain why they turned someone down for a new home loan or credit card based on their credit score. When consumers are denied, the lender will have to provide them with a free copy of the credit score it used to determine their ineligibility. In the past, consumers would have had to pay to see that type of credit report information.

This new rule isn't just for people who were denied credit flat-out. It will also cover consumers who get a line of credit but with higher than normal interest rates. The lender will also have to explain what portion of the consumers’ credit history was weighing down their rating.

According to CBS Money Watch, 

"The rule says that any lender that charges more or rejects your application because it deems your credit substandard will have to tell you why. If you were submarined by a sub-par credit score, you’ll get a copy of the score your lender used and an explanation of what dragged it down."

Sixty-five percent of a credit score is made up of the payment history and the amount of available credit being used across all accounts, so knowing more about these important factors can go a long way toward helping you improve your overall credit score.

If you need help getting your finances under control you can contact one of CCR’s specialists toll free at 1.866.345.3077. Or click here to check out our new easy to use debt calculator.

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