Finally a break for consumers.

You will receive your free credit score when denied credit.

The Dodd-Frank financial reform law goes into effect today.

Your credit score determines the interest rate you pay for a credit card, car loan, private student loan or a home mortgage.  A low score could prevent you from getting a loan at all. But for years, this important number has been a mystery to most consumers"

Source  USA Today – Credit score is free you're rejected for a loan

When an application is denied by a lender they are now required to give a notice of "adverse action".

This notice will include your free credit score and explaination to why you were denied.

Also if you are given a rate higher than their best customers they must give you this notice as well.

Lenders will have to disclose the score used to process your application.

Lenders now have to give the factors that adversely affected your credit score and the range of possible scores.

Consumers could possible start shopping around for better rates when they find out from lenders that they do not qualify for the best rates.

The new law will not provide you with your free credit score before you apply for a loan.

Each year consumers can get a free copy of their credit report by going to www.annualcreditreport.com.

When you get your copy of your credit report you can purchase your credit score at that time from each credit bureau.

"Some credit bureaus sell consumers "educational" scores that aren't the ones used by lenders.  In other cases, the score may be based on a different model than the one lenders use, the report said".

In my opinion consumers have the right to have the exact credit score that lenders use.

For many years consumer have not received their credit score when denied credit.

You only hurt consumers by not giving them the correct information.

Consumers trying to better their scores need to know where they really stand with their credit score.

According to the article many consumers may apply for loans that they are not eligible for with these educational scores.

Another pay of the provision will allow consumers to have more money available when they make deposits.

Banks and credit unions now have to make a minimum of $200 available from a deposit in one business day.

Check deposits over $5000 can be held for a longer period of time.

When consumer have had numerous overdrafts checks may be held for a longer than 1 business day.

Consumers need to check their credit before they apply for credit.

Checking your credit at least 3 months before you plan to apply for credit.

This will give you time to make adjustments to your credit report.

Now consumer will have access to more of their money when making deposits.

Banks have long held money making interest off money that they do not allow consumers to use.

Not all consumers overdraft their account.

However, banks and credit unions hold deposits to charge overdraft fees.

Get a copy of your credit report and credit score today.

Don't wait to be denied to receive it. 

Your financial coach,

Renee Lawson

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P.S. Did you know there's one amazingly simple thing you can do right now to increase your credit score? My new video show your how FREE: www.totalprosperityclub.com.

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