Credit Decision Notices Required

As of right now if you are denied a credit card or an auto loan you are sent a letter in the mail stating that you are entitled to a free credit report because of this denial. This allows you to see why you may have been denied for the auto loan or credit card and see what steps you might need to take in order to improve your credit rating, or to fix errors that might be keeping you from being approved.
 
However, if you are approved for an auto loan but are getting a higher rate than someone with a better credit score, you simply get that rate but don't necessarily know why you are scoring the way that you are. A new law that is being passed will change these current rules so that you have an opportunity to know why your auto loan is going to cost you more than say the guy next to you. This means that instead of taking what ever interest rates you are offered for your auto loan you may be able to do something about it.
 
Lenders don't have to tell you why they are offering you the rate on your auto loan that they are. This will now change so that they have to tell you what factors went into their decision to give you a higher or a lower rate than someone else. Those consumers that don't get the best possible interest rate for their auto loan will be given notice as to why they were scored the way that they were and they will have the opportunity of getting a free credit report.
 
As of right now if you want to know why you got the interest rate that you did, you have to pay for it from any one of several credit reporting companies. In addition to these free reports, a new law that Pres. Barack Obama has put into play also limits rate increases and has made auto loans and credit cards more consumer friendly.


 

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