By now, you probably know about your right to get a free credit report each year through AnnualCreditReport.com. Until this year, there was no law granting anyone a free credit score. Starting January 1, 2011, a new law will require some lenders to give free credit scores to consumers who are either turned down for a credit card or who are approved but with less favorable terms.
For now, lenders can choose to give a free credit score or to give another detailed notice about the negative decision. Come July, every lender will have to give a free credit score whenever your credit score is used in an adverse lending decision.
Read more about these new Risk-Based Pricing Notices to learn when you would receive a free credit score.
Learn More About Credit Scores
This is definitely a good thing. The one thing I find very interesting about this though is say a lender desides to give you a poor interest rate because your credit is sub par.
How do you know that you got a terrible rate and have the right to see your credit score?
I am assuming that many lenders will just say:
“here is your loan terms and interest rate, what do you think?”
If the borrower does not know any better, they will not know to ask for their credit score to be shown to them.