Consumer credit scores are a valuable tool in getting approved for loans and mortgages, but they are a pain in the ass for many consumers.
Now, a new tool from the Consumer Financial Protection Bureau (CFPB) may help ease that pain.
The agency is working with the industry to develop a new scoring tool that will allow consumers to be confident in their credit reports.
The bureau says it will begin the process of developing a score that will “allow consumers to understand their credit scores and understand whether they are at risk for higher or lower interest rates.”
Consumers can submit the score information online.
The new score will then be compared to scores from existing consumer credit reporting agencies.
If they match, the consumer can request that their credit information be removed from the credit reports of their existing credit score providers.
The bureau says this will give consumers “the ability to make better informed decisions on how to spend their money,” which could be a positive if you are looking to buy a house or a car.
The agency says that if a consumer has a bad credit history, it could potentially result in them losing their entire credit score.
The agency says it has a list of potential criteria for which consumer credit scores should be removed, but this new scoring will only be used if it comes from a consumer credit report that is approved by the bureau.
If the bureau approves the score, consumers will not be required to update their information, which will allow them to avoid losing their scores.
This is a big win for consumers.
While the CFPB has not yet made this tool mandatory, the move is a welcome one, as it is one of the few tools available to help consumers improve their credit score, and is an important step toward the bureau’s goal of making sure consumers have access to affordable and reliable credit.
Consumer Financial Protection Board (CFPOB) ConsumerCreditScore.gov The new scoring is the latest in a series of tools from the CFAB, which was created in the aftermath of the Great Recession.
In February, the agency released a report on the impact of debt on consumer credit, and also outlined how to prevent consumer debt from harming your credit scores.