What is "score disclosure" under the FCRA?

Score disclosure under the Fair Credit Reporting Act (FCRA) specifically refers to the requirement for creditors to inform consumers of their credit scores that were used in the decision-making process for credit applications. When a consumer is denied credit or offered less favorable terms due to their credit score, the FCRA mandates that the lender must provide the consumer with the credit score used, along with certain information about the score itself, including the range of possible scores and the major factors that adversely affected the score.

This is crucial for consumers, as it allows them to understand the basis of the lending decision and helps them identify areas for improvement in their creditworthiness. Transparency in how credit scores are utilized promotes fairness and accuracy in credit reporting, which are key principles of the FCRA.