NEW YORK (LowCards.com) Credit scores are how lenders and even some insurers and employers judge consumers. For a number that carries such influence, there are many gray areas that can create problems and confusion for consumers.
The July issue of Consumer Reports calls into question the value of consumers buying their credit scores. The reason? The FICO scores that millions of consumers buy each year for $20 are not the scores that car dealers, auto-finance companies and mortgage lenders use. The magazine reviewed the material that Fair Isaac
Secrecy adds to the mystery and frustration surrounding credit scores that lenders actually use. Consumer Reports says that VantageScore is used by 1,300 lenders, but there are various versions that can give very different scores. Fair Isaac sells 49 different FICO scores to lenders, but only two of these to consumers.
In November, the Consumer Financial Protection Bureau released a list of 40 specialty reporting agencies. The CFPB warned these specialty credit reporting agencies that they may be violating federal law by not providing consumers with easy access to credit reports.