Many Confused About Declined Credit

CREDIT CARDS(CNN) — Despite laws to keep consumers informed about their credit score, many still don’t get it.

That’s the results of a recent survey conducted by credit scoring company VantageScore Solutions.

The 2011 Dodd-Frank Act requires lenders to inform consumers who are declined credit or given less favorable terms and explain the decision.

Credit lenders say only about 10 percent of their customers fully understand the two-digit reason code system used in the explanations.

Analysts say the codes often use confusing terminology and are too short.

VantageScore launched a website last year, reasoncode.org, to help consumers understand the reasons they are denied credit.

Leave a Reply

Your email address will not be published.

3 × 5 =

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>