Expanding Credit Checks Beyond Scores
Posted: Friday, September 16, 2011
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.
Lenders Need More Information than the Credit 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.
Errors on Credit Reports can Hurt Borrowers
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 Branching Out Into New Areas of Credit Reporting
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.
SmithMarco, P.C., can help the consumer with credit history problems. Call now for a free case review or to speak with one of our attorneys.