One of the changes implemented by the Dodd-Frank financial reform bill will take effect tomorrow, July 21 if you're denied a credit card or asked to accept an above-average interest rate, you have a right to know how credit score influenced the decision. This new protection applies not just to credit card issuers, but to utilities, insurance companies, landlords and anyone who falls under the designation of creditor. Now, if you're turned down or if you are issued a card with a high interest rate, the issuer will have to detail exactly why you have these adverse terms.
In the words of the Federal Reserve, this new law requires creditors to disclose credit scores and related information to consumers in risk-based pricing and adverse action notices under the Fair Credit Reporting Act (FCRA) if a credit score was used in setting the credit terms or taking adverse action.
That needs a bit of parsing. If you get abnormal terms on a credit card (a higher interest rate, say), are denied for the card outright, or have to pay a higher insurance premium, then the issuer will have to tell you 1) your credit score and 2) any information they used in addition to your credit score. This is intended to boost transparency and prevent issuers from arbitrarily denying access to credit. We've all heard horror stories of peoples credit reports getting mixed up; hopefully, these new regulations will address such problems.
(Quoted from an article @ nerdwallet)
