The new government rules regarding credit score disclosure will take effect in the month of July this year. According to these rules, a credit report agency will require to disclose more about the credit scores and how they are used. This policy change is expected to benefit those who have a good understanding of the new credit score marketplace.
Experian's VantageScore Solutions are joining hands with Consumer Federation of America (CFA) to educate people on how they can take advantage of this new marketplace by understanding well issues related with credit scores. With free access to credit score, it is now expected that consumers will improve their understanding and use the same to take advantage when shopping for a loan.
A survey conducted by Opinion Research Corp. reveals that how poorly people are aware of credit score basics. Questions like who makes these available to general public and what is considered a good score are unanswered by a large number of respondents. On an average, only 60 percent of the respondents out of a total number of 1000 replied correctly to the questions asked to them.
Credit Scores figure prominently among the items that a lender peruses closely before approving a loan. They are an indicator of how well or how poorly a borrower will pay back the mortgage. The more the number the more is the credit worthiness. Moreover, the amount one can borrow at a lender is also dependant on the credit scores.