On Your Side
New kind of credit report could include information you don't expect
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Some new credit reports are packed with information about you--showing how you handle everything from electric payments to past rent.
Most people realize their credit report will dictate whether they get a loan for anything from a car to a house, and if so, what kind of interest rate they'll pay on that loan. Now, a new kind of credit report, called Core Score, contains information that digs deeper than ever--from rental applications and evictions, to pay day loans, to auto title loans.
It's all intended to give a lender a better idea of who is asking for money and the likelihood of it being paid back. So where do they get the information
John Ulzheimer is with smartcredit.com. He explains, "From the public records system, and traditionally credit reports only hold three types of public records; bankruptcy, tax liens and judgments."
Not everyone is comfortable with all this extra sharing.
Various consumers responded:
"I don't think they need more information about us."
"It's not really fair."
But others, who pay bills that weren't on traditional credit reports see it as a plus:
"I guess if they had more information in way it would benefit me."
Core Logic acknowledges the extra information could hurt some people, while helping others. The company would not agree to go on camera, but in a written statement pointed out: 'Borrowers who would typically have insufficient credit history in traditional credit reports could now have new opportunities."
Ulzheimer agrees, saying, "tThe addition of this type of non-traditional information is going to help some people have a credit report who have never had a credit report before."
Attorney Chi Chi Wu with the National Consumer Law Center sees it a little differently. She's concerned people who had legitimate reasons for not paying certain bills will now be penalized. Wu elaborates, "If there are mice running around, if you don't have any hot water, you're allowed to not pay your rent under some jurisdictions. Is the new credit report going to reflect that?"
And, what else could be added to these reports? It's another concern.
"With the push of a button you can aggregate billions of pieces of
Information about anything and turn it into a consumer report," Wu warns.
Ulzheimer still believes the new reports will help both lenders and consumers. "Now consumers who deserve the credit are going to get it. Those who deserve it at competitive terms are going to get competitive terms, and those who frankly don't need to be saddled with that type of debt are going to be denied."
Both experts agree you should look over your Personal report and check it for errors, just as you should with the traditional report. Consumers can request their free annual consumer file by contacting Corelogic Credco.