Your Credit Score and the Financial Reform Legislation

President Obama recently signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  It is commonly known as the Financial Reform Legislation and is designed to help prevent economic failure.  To accomplish this it has many new regulations and restrictions on lending and credit.  Its far reaching effects go all the way down to your individual credit score.

This legislation means your credit score is now more important than ever to get a loan or financing for both you personally and for small business owners whose personal credit is used.

Among other things, lenders will be required to certify that consumers have a reasonable ability to repay a loan.  Lenders will look at your income closely, but this will also force more scrutiny on your credit score and credit report showing your prior ability to pay your obligations.

This means your credit score is now more important than ever to get a loan and especially a mortgage.  It is interesting to note that Auto lending is exempt from this legislation, but your credit score plays a big role here too.

Make sure your credit score is the best it can be, before you apply for any loan.  Also, make sure you have credit monitoring and identity theft protection.

How to get the best credit score possible.

No credit score will last forever.  It will change over time as your credit patterns change, or you get new credit, or perhaps you use too much available credit.  Think of your credit score as a snapshot of your credit performance at a fixed point in time.  Your score can go up or down depending on how you manage your credit.

Your credit score is based entirely on your credit report.  It is one of the most powerful tools creditors use to assess your credit risk.  Credit monitoring and identity protection will help protect your credit score and your efforts to get a loan.

Be proactive about your credit score!  Use and its unrestricted free trial to see your free credit scores.  Use the action buttons to communicate directly with over 36,000 creditors for anything you need, including credit score improvement, removal identity theft and even get goodwill removal of negative items on your credit report.  You can even ask for a more competitive interest rate on your credit cards.  It’s fast and effective!

Smart Credit also includes both credit monitoring and identity protection, with a mobile rapid response, for the fastest way to detect and stop identity theft.

David B. Coulter – founder and C.E.O. of