With the passage of a new law, it's now easier for credit customers to know whether they have bad credit, a recent Reuters wire item reports, as lenders will soon be required to inform borrowers of their score if they're being denied because of it.
For instance, while a credit score is important, what may be more important is a consumer's credit report. By consistently checking their report, consumers can learn about their credit history, which is what credit rating firms use to determine a borrower's score. Borrowers can then substantiate payments and also determine whether any errors were made.
Should a customer know their credit score prior to receiving it from a lender, they may be confused if they receive a score they don't recognize. This may be because the lender used a different score to assess whether an applicant could obtain the loan, such as an auto or education loan score.
At the same time, however, a low score may be as a result of improper statements made by the lender, which led to the bad credit rating. A credit lawyer may be able to help consumers identify these errors and correct the issue.