Fair Access to Credit Scores Act of 2013

There is a bill before Congress called the Fair Access to Credit Scores Act of 2013 (introduced in March), and some believe that this will be of benefitCredit Scores? to the home buying public. They believe that if the consumer is provided with a FREE credit score, along with the free credit reports that are now law, that they will better understand where they stand on the credit continuum, and aren't as likely to get overcharged in their use of credit.

There is a well-known national magazine which is supporting this Act. Yet even they have article in current issue indicating that there is no ONE score, even from one credit bureau for one type of loan.

What everyone needs to know, and I believe will be much more helpful, is that each person actually may have many credit scores (could be approaching 40-50). There may be different scores for mortgages, car loans, department store credit (multiple - dependent on type of store - clothing, sporting goods, hardware, etc.), or generic credit card (MC/Visa/Discover/etc.). Even the mortgage scores could vary depending on whether the lender is broker, local bank, credit union or national bank. Which score is right? Every one of them, but for different audiences and purposes.

If your client got a report from the credit bureaus with ALL his credit scores, how would he know which one his lender was going to use? This is another one of those "feel good" bills being put together by people who have no understanding of the complexity of the issues involved. In other words, this is likely to fit the proverb "you get what you pay for" very well.

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