Among the responsibilities placed on the Consumer Financial Protection Bureau by the Dodd-Frank financial reform act of 2010 was the study of credit scores—specifically, the differences between scores purchased by consumers and those used by lenders to make credit-granting decisions. Tuesday, the CFPB followed through on this mandate, releasing a report to Congress titled “The impact of differences between consumer- and creditor purchased credit scores.”
[Featured Product: Looking for credit cards for bad credit?]
The CFPB’s report covers background information on credit reporting and credit scoring, as well as an overview of the different types of credit scores available to consumers and lenders. For those with a limited understanding of how this all works, this is helpful info.
It also explores the ways in which differences between consumer-purchased scores and those used by lenders could ultimately cause consumers harm, and provides insight into forthcoming CFPB research on the topic.
[Resource: Tips to Improve and Rebuild Your Credit]
CFPB Credit Score Study Key Findings (cont.) »
[Related Articles: The Consumer Financial Protection Bureau]
Image by LeAnne Inglis, Flickr.com
Tom Quinn Credit.com’s Consumer Credit Expert, Tom shares invaluable insight to navigating the often complicated world of credit scoring, credit reporting and credit granting industry practices. Formerly with FICO (Fair Isaac), MDS (now Experian) and Citibank, Tom has more than 20 years of experience in the credit industry and is currently Vice President of Scoring at Nomis Solutions. Reach Tom at creditexperts@credit.com.
Follow Us
