You may already know about adverse action notices which sent whenever you’re denied credit. The adverse action notice gives you instructions for getting a free copy of your credit report if your credit was the reason you were denied. Thanks to a new rule, your credit score will also be part of the post-application notification.
At the beginning of the year, the Fed required lenders to send a risk-based pricing notice or credit score disclosure notice to every applicant whose credit score caused them to get less favorable terms, whether that meant a denial or approval but with higher pricing. Lenders had an option to include credit scores in these notices, but it wasn’t a requirement.
Starting July 21, 2011, lenders will be required to give a free credit score to all applicants who are denied or given higher pricing because of their credit score. The notice should include your credit score, your credit score range, and the major factors that affect your credit score. These notices will give you information you can use to improve your credit score so you can get approved with better terms next time.
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Tags: Credit, Denied Credit
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