Disclosure for Credit Scoring

California state Senator Liz Figueroa is sponsoring a bill to give state residents the legal right to know their credit score. According to the report in Smart Money, it is a "right to know" issue. Consumers who know their credit scores will have the information used by lenders to decide whether or not to grant them credit and what interest rates to charge for the service. Most consumers understand that it is important to be prompt in making their payments. However, consumers are not aware of the other factors that determine their credit score and the weight given to each factor. To remedy this lack of information, Senator Figueroa would require that the scores be provided without charge when consumers apply for a home loan and "reveal how your score ranks and the top four areas where there was a negative on the report." At any other time, consumers would have to pay for the information.