User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


23° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

News

[0] My Saved Articles
Back to all news

Business

Find local businesses
on the KELO Pages!

 

Most Popular Today


Govt. Watchdog Tackles Your Credit Score

April 12, 2012, 10:00 PM by Angela Kennecke

Govt. Watchdog Tackles Your Credit Score
SIOUX FALLS, SD -

You apply for a car loan or a mortgage and find out your credit score isn't what you'd expect.  But the reasons behind your lower score are vague and perhaps non-existent.

The newly formed Consumer Financial Protection Bureau criticized the scoring system over bureaus providing one score to lenders and different ones to consumers. 

Whether you're applying for a mortgage or a job, your credit score determines how easy it will be for you to get it.  But how your score is determined is a mystery.  35 percent of the scoring factors have nothing to do with your payment history.  Even the number of inquiries into your credit report can hurt your score. 

Angela Kennecke: Your FICO-nothing could be more mysterious than that-how they come up with it?  Is your organization going to tackle that issue?
Consumer Financial Protection Bureau Director Richard Cordray: We are going to be tackling the issue of credit reporting agencies.  We have two studies Congress has required us to do that demystifies the issue of your credit score; why it can be different when you ask for your credit score as opposed to when a bank asks for it.

Today your credit score is even more of a factor in your life than it was a decade ago.

"It is a tremendously influential thing for consumers.  When you go to borrow money for a car to get a mortgage, your credit card, depending on what's on your credit card, you will be charged a higher rate of interest if you're viewed as bad credit.  A lot of people don't know that," Cordray said.

You could even be turned down for a job if your credit score isn't high because you may look irresponsible to a prospective employer.  The CFPB says it will be muddling through the mess that makes up your credit score and come up with new ways to make it easier for consumers to track and understand. 

"We are going to be supervising these institutions very closely to make sure they're complying with the law. We are actually going to have first hand knowledge of their operations because we have authority to go in and seek information about anything we want to know and they're not at liberty to withhold it from us.  That can be a really quick way to get a bird's eye view of what's going on," Cordray said.

Cordray also wants to come up with a faster, easier process to get mistakes on your credit report corrected.

You should be checking your credit report regularly.  You have a right to get free access to your credit report from each reporting agency once a year, which means you can check it several times throughout the year. 

Friday night, we'll show you the new interactive tool from the Consumer Financial Protection Bureau to answer your questions and what to do if you have a concern or complain.

Previous Story

Next Story


Comments







 
Find Local Businesses on KELO Pages!

View business

You may also like

New Indoor Racing & Recreation Business

11/19/2014 10:05 PM

For about four months out of the year, people in the Sioux Falls area can go go-kart racing and play mini golf.

Full Story | Watch
New Sioux Falls Shop Opens Thursday

11/19/2014 11:10 AM

Holiday shoppers will soon have a new spot to buy locally made gifts.

Full Story
Stroller Recall Due To Amputation Hazard

11/20/2014 9:45 AM

More than four million strollers sold in the United States are part of a recall.

Full Story
Alco To Close Stores Across South Dakota

11/21/2014 2:03 PM

Several South Dakota cities will soon have one less store.

Full Story
Gas Stations In Region Struggling To Keep Up Supply

11/18/2014 5:52 PM

Over the past few days, drivers in Sioux Falls have been noticing certain grades of fuel are out of stock at gas stations across town.

Full Story | Watch


Events