Credit score amendment finds Senate approval

May

Credit score amendment finds Senate approval

Tagged Under : Credit Score, Score

Although they have held importance for some time, credit scores have been vaulted to even higher significance for people given the recent recession.

As a result of financial difficulties seen by business and consumers, lenders have tightened their requirements regarding credit scores and the products they offer, such as credit cards and home loans. However, to gain access to these scores, consumers had to pay certain companies a fee.

That may change given an amendment approved by the U.S. Senate that would give people access to their credit scores under certain circumstances, including being denied a loan or being offered a higher interest rate on financial products.

The amendment to financial reforms being considered by the Senate was introduced by Colorado Democrat Mark Udall, who said consumers have been at a disadvantage by not knowing what their scores are.

“It’s simply not fair for lenders to have access to a consumer’s all-important credit score without the consumer being given free access to it,” Udall said.

Along with giving access to credit scores, the reforms being considered by the Senate would establish a new federal-level bureau that would hold regulatory power over products like credit cards and mortgages.

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