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Credit score its credit scores have always been a big mystery and -- you're applying for a mortgage.
It was hard to get -- unless -- paid for it but now new rules make it easier for consumers to obtain free credit scores from lenders.
Here to tell us about it John Alzheimer president consumer education for smart credit dot com.
John worked with senator Mark Udall from Colorado -- introduce the legislation that made this possible John great to see you.
Yeah thanks for having me Jerry T minus fourteen days toll -- credit scores can't wait to know you -- -- talk all the time about credit reports but this gore is the big Kahuna the score is what determines.
Now what kind of alone you get what the terms are it's really the important thing and you can't get it but it's not very easy -- you always have to pay for it.
What do these and lenders have to do now that they didn't have to do before.
While outside of July 21.
Anybody to use as a school war to underwrite allowing -- -- standard credit.
Passed to disclose that -- of the applicant as long as that score was used.
To either -- credit set what's referred to as risk based pricing or is used to set material terms for the account.
Now I don't know if you just caught that but that pretty much encompasses every different situation -- -- where someone can apply for credit that's pretty much everything.
So that means that starting July 20 why and when you apply for credit it is and very very likely regardless of the disposition of the application that you're gonna get something in the mail that's gonna have your credit score on and that's historical.
RA he'll get a free credit score if you apply for credit in the -- -- used to set terms apply for a denied -- based on score credit approval less than the best terms you really wanna then.
APR is increase based -- -- credit -- consumer applies for a mortgage loans almost every eventuality.
You know try it seems to me that a fire ran a business and I was looking at credit scores.
I would just -- these letters out pro format because why anyone would have to figure out what the -- -- just make sure you're not breaking right.
I think that is I think your brilliant to suggest that and actually some -- are actually going to do that rather than trying to figure out.
What really unique situation excludes them from having to send out a credit score some liners are actually gonna default -- you know why it doesn't matter I get a credit -- on giving it to the consumer -- -- took over comply with best.
So no one can ever suggest that I'm not a.
-- let's take a look at what your credit score determines because I mutual -- it really as you mentioned mortgage before.
There's also car alone.
-- credit card your limit your -- cell phone service.
Not just -- -- try this a lot of people out there say that some employers even look at this when their hiring folks do you agree with them.
It's not some people -- a lot of people who suggested employers use credit scores and that is by far -- number one math.
With respect to credit -- and credit reports and credit scores are two different things employers and those states are allowed to look at credit reports.
As part of -- on screening however they are not allowed to end and the credit bureaus do not.
Sell credit -- along with the credit reports that employers use for employment screening and it's absolutely it's -- a unicorn a lot of people talk about it no one's.
Actually -- -- -- I didn't think universe would come up in this but one final question here OK when you get a letter and you have that number in hand how do you analyze that -- a good number what's a bad number.
A good number what the new black when it comes to credit scores -- 760 -- about and that's on the ficus scale.
I'm anything about 760 is generally considered.
With having scores at 716 about is if you're applying for mortgage -- you don't have a sufficient down payment.
To satisfy the -- -- otherwise 760 it puts you in rarefied air and it almost exempts you from the credit crunch aren't we all have goals now John thanks for the help today we really appreciate it you --