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A new law comes into effect that will require lenders to provide a potential borrow with their credit report and possibly FICO score if they are offered terms that are worse than others.  The previous law allowed you to obtain a free credit report if you were denied a loan so this isn’t a big change, but allows more people to get their credit report.

People generally are aware of how their credit is doing. If you have a late payment or collections or maxed credit cards, your score is not going to be very good.  This is mostly away to find out about identity theft or errors on your credit report.  This new law doesn’t help anyone obtain financing, but offers a way to get answers if your interest rate is higher.

New loan rules will begin Jan. 1

Starting Jan. 1, if you’re offered less-favorable terms than other people on a credit application because of a problem in your file, you’ll be able to receive a free copy of your credit report or, possibly, a free credit score.

New rules finalized this week by the Federal Reserve and Federal Trade Commission generally will require lenders to provide loan applicants with a “risk-based pricing” notice and a free credit report when they offer worse terms to certain applicants compared with what they make available to others, including higher interest rates.

The new policy affects applications for credit cards, mortgages, auto loans, student loans and other types of debt, said Bill Hardekopf, CEO at LowCards.com.

Providing free reports should help applicants check the accuracy of information about them that is contained in a report.    –more