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
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.