The Consumer Financial Protection Bureau (CFPB) wrote a letter urging banks to offer free credit scores to their customers.
The bureau believes that people would be more prone to check their credit scores if they could access them free of charge. As things currently stand, consumers are allowed one free look at their credit reports at AnnualCreditReport.com.
However, many do not take advantage of this opportunity because it is not free of charge all the time. CFPB’s letter also discussed the impact that free credit scores would have on people’s credit.
“Sometimes they fail to see the importance of their credit standing even if it has affected them in material ways,” the letter said, “such as being rejected for a job or charged a higher price for a loan.”
The letter also said that customers who have free access to their credit scores are less likely to become delinquent or default.