It used to be that you when you took out a loan or applied for a store credit card, the lender would check your credit score. Today, the credit checks go beyond the score.
The major lesson that lenders have learned from the recession is that traditional credit scores do not determine the whether or not the borrowers could repay back the loan. Lenders need more information than the credit score of the borrower. Now lenders are taking more time scrutinizing the borrower’s financial health and seeking more personal information about the borrower. In response, data companies are gathering more personal information about the consumers.
Consumer advocates support taking more care into the reviewing the consumers’ credit history. However, this can still hurt borrowers. The information complied in the reports is not always accurate. Credit files can have serious errors.
Equifax, the Atlanta-based credit bureau, has been branching out into new areas of credit reporting by offering products with varying degrees of new consumer information. They have made new purchases and hold data containing income, new worth and job history for tens of millions of Americans. To read, click here.
Larry SmithConsumer Rights Attorney at SmithMarco, P.C.Larry P. Smith is a consumer attorney and the founder and Managing Partner at SmithMarco, P.C. He has tried dozens of consumer rights cases to verdict and has arbitrated over 700 cases. Additionally, he has amicably resolved over 3,000 consumer fraud, Fair Credit Reporting Act and Fair Debt Collection Practices Act cases via settlement. Mr. Smith has been a guest on multiple radio outlets including WLS and WGN in Chicago providing consumer advice. Mr. Smith also provides leadership and delivers lectures to the National Association of Consumer Advocates, The National Consumer Law Center, and the Chicago Bar Association. Latest posts by Larry Smith (see all)
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