Understanding Credit Scores: Law Requiring Disclosure of Credit Scores to Consumers Step in Right Direction

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Consumers Getting More Insight into Mortgage Credit Decisions Beginning December 1

Starting December 1, 2004 mortgage lenders will be required to disclose an applicant’s credit score and reasons for the score if the score is used in the underwriting decision. SPENDonLIFE.com (http://www.spendonlife.com/entercampaign.aspx?id=795&ord=2), a consumer savings website that provides mortgage quotes, encourages all mortgage applicants to take advantage of this new law.

“This new law is great for consumers. We encourage them to have a good understanding of their credit score even before applying for a mortgage,” says SPENDonLIFE.com President, Mark Henry. “Knowing their credit score allows consumers to negotiate better rates or find ways to improve their score, before they are at a point where they need to close on their home.”

Consumers have often been in the dark regarding the rates they receive on home loans or why they were declined an offer. The new law addresses those issues by allowing consumers to see the score the lender used to make a decision. Consumers can dispute the credit score used if it is inaccurate.

“It’s going to be easy for consumers to learn whether the lender used the appropriate credit score. Sometimes credit reporting agencies differ and have different records. Consumers can make get the best deal by comparing credit scores from two different sources,” says Henry.

Public Law No. 108-159 was signed it into law on December 4, 2003. SPENDonLIFE.com offers a free service to help consumers lower their monthly bills. Consumers can save on loans, insurance, long distance, debt management, credit reports and more. The company has been a leader in helping consumers save money since 2001.

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Carlos Garcia
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