New rules entitle consumers free access to credit scoresby Jessica Mador, Minnesota Public Radio
St. Paul, Minn. — Consumers who get turned down for credit are entitled to access their credit scores for free.
New Federal Trade Commission rules require creditors to send a notice when they deny consumers credit or give them less-than-favorable terms for credit.
Beyond one free credit score report annually, consumers had to pay to see their scores until these new rules took effect.
The new Federal Trade Commission rules require creditors to send consumers a "credit score disclosure notice" each time they deny credit or give less-than-favorable terms due to consumers' credit score. Credit scores are often used as a factor in approval for credit, insurance and some rental and employment opportunities. Credit scores are often used as a factor to approve credit, insurance and some rental and employment opportunities.
The new rules, which start today, go a long way toward improving financial literacy, said Darryl Dahlheimer from Lutheran Social Service Financial Counseling Service.
"It tells you what score was used and it allows you to get a free copy of that credit score. You want to know your score because how your score is high or low affects a lot of rates and applications to things," Dahlheimer said.