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Andrew Carnegie

Tuesday, July 24, 2012

Your Credit Score Will Soon Get More Scrutiny

A credit card, the biggest beneficiary of the ...
A credit card, the biggest beneficiary of the Marquette Bank decision (Photo credit: Wikiped
Your credit score is now being watched even more closely. And that's probably a good thing. The Consumer Financial Protection Bureau, which was created in 2010 to serve as a watchdog over credit cards, mortgages, payday loans, and other consumer financial products, announced Monday that it will start supervising the consumer reporting agencies. Those agencies collect information on consumers’ credit worthiness and are best-known for calculating credit scores, which often determine the availability and affordability of consumer loans.
Those scores and their related credit reports have long created headaches and confusion for consumers, who often find that their reports contain errors that can be hard to correct. Surveys suggest that many consumers falsely believemaintaining a credit card balance can help their credit score, when in reality it can hurt it. Many consumers also falsely believe that they have just one credit score or that they share a score with their spouse; each credit reporting agency generates its own scores, which are given to individuals, not couples.... Continue to read.
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