CFPB Study Notes Credit Score Differences

A new study comparing credit scores sold to creditors and those sold to consumers confirmed that about one out of five consumers would likely receive a meaningfully different score than would a lender. The Consumer Financial Protection Bureau (CFPB) study compared credit scores sold to creditors and those sold to consumers by nationwide credit bureaus in order to determine whether differences between those scores harm consumers. It concluded that one out of five consumers would likely receive a meaningfully different score than would a creditor. When consumers purchase their score from a credit bureau, the score they receive may be meaningfully different from the score that a lender would consult in making a decision. In addition, the study noted that score discrepancies may generate consumer harm. When discrepancies exist between the scores consumers purchase and the scores used for decision-making by lenders in the marketplace, consumers may take action that does not benefit them.    The CFPB study analyzed credit scores from 200,000 credit files from each of the following credit bureaus: TransUnion, Equifax, and Experian. It was a follow-up to a 2011 analysis. To see the complete study results, visit http://files.consumerfinance.gov/f/201209_Analysis_Differences_Consumer_Credit.pdf 

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