The Dodd-Frank Act-mandated study analyzed credit scores from a total of 200,000 files at TransUnion, Equifax, and Experian to compare scores sold to consumers with those sold to creditors.
The CFPB said in a press release:
A meaningful difference means that the consumer would be likely to qualify for different credit offers—either better or worse—than they would expect to get based on the score they purchased.The agency emphasized that there’s no way consumers can know how the score they receive will compare with the score a creditor uses in making a lending decision. They therefore can’t rely exclusively on the credit score they receive to determine how lenders will view their creditworthiness.
The CFPB recommended that borrowers shop around for credit, check the credit report for accuracy, and dispute errors. The bureau will begin supervising consumer reporting agencies on Sept. 30.
Read the CFPB’s press release.
Read the Dodd-Frank Act-mandated study.