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New Member
mwcreditexp
Posts: 5
Registered: ‎02-09-2013
0

Credit Agencies Overhaul

[ Edited ]

I recently wrote to my local Senator and Congressman about the credit reporting agencies.  Please take time to read this below and file a message with yours.  These Credit Agencies need to be overhauled to help every single one of us fully succeed.  

 

I would like to point out a few things with our credit rating systems that are used today.  This is specifically in regards to the way Experian, Equifax & TransUnion report data about your credit history.  I like most Americans had to forego filing a chapter 7 bankruptcy back in 2009.  I did not foreclose or short sale a property as part of this.  Now that this has weathered several years post bankruptcy I am still trying to recover from this.  The problem is this puts a black mark on you for 10 years which I was fully aware of this when I went in to file. 

 

When you have this black mark on you it is extremely hard for banks to look past it.  Therefore when you apply for credit you have to forego multiple inquires which take away from your score.  I feel that when you apply for credit that should be a matter of private record not public.  No bank should be able to see who else you are talking to about credit nor should this affect your score.  There are really no laws around this in the FCRA.  Another point is, we now live in a time where all these credit systems are connected.  The credit reporting agencies should be required to furnish you an electronic communication alerting you that a new account/inquiry is being reported against you.  These companies all make money from the companies who report and request reports of consumers & businesses.  These notices could be sent via email to the consumers.  If the consumer did not have email/electronic access to receive the alert these should be mailed out to the consumer.  This would potentially cut down on the number of fraudulent accounts being opened. There should be a statement that says this account is now being reported against you by "The Company" if you do not recognize this please call "The Company" & "The Credit Reporting Agency who notified you".  There are these services out there that are a monthly subscription.  Not all consumers can afford to shell out the $15 to $30 fees per month for this services.  Nor in my opinion should we have to pay for these alerts.

 

The credit rating system dictates your ability to survive in today’s economy.  Therefore maintaining your strong rating is crucial.  Please help me get these items overhauled.  All of us consumers really need your help.

Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

Re: Credit Agencies Overhaul

There are free credit monitoring services you can use that will alert you to new inquiries. 

Valued Contributor
Gunnar419
Posts: 1,264
Registered: ‎01-23-2013
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Re: Credit Agencies Overhaul

[ Edited ]

mwcreditexp wrote:
I feel that when you apply for credit that should be a matter of private record not public.  No bank should be able to see who else you are talking to about credit nor should this affect your score.

Why do you think that one credit vendor should not know you're applying, or have recently applied, for other credit?

 

I'm no big friend of the banks and I can envision dozens of ways in which CRAs could do a better job. But that information is highly relevant to anyone you're asking to loan you money. You're asking them to put themselves at risk; they have every right to know as much as possible about your risk factors.

 

Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

Re: Credit Agencies Overhaul


Gunnar419 wrote:

mwcreditexp wrote:
I feel that when you apply for credit that should be a matter of private record not public.  No bank should be able to see who else you are talking to about credit nor should this affect your score.

Why do you think that one credit vendor should not know you're applying, or have recently applied, for other credit?

 

I'm no big friend of the banks and I can envision dozens of ways in which CRAs could do a better job. But that information is highly relevant to anyone you're asking to loan you money. You're asking them to put themselves at risk; they have every right to know as much as possible about your risk factors.

 


+1

New Member
mwcreditexp
Posts: 5
Registered: ‎02-09-2013
0

Re: Credit Agencies Overhaul

I know there are free options out there such as Credit Sesame and Credit Karma.  There is not one for Equifax that I have found yet.

 

To your point about risk.  There is this system called E-Oscar it is an electronic system that reports data and removes data from all four credit agencies.  Let's say if you apply for a credit card and you are approved.  That account could be reported to your credit bureaus in minutes they same exact way an inquiry is.  If you go to purchase a house that is a totally different set of circumstances.  Maybe if you look at buying a car and you decided to go with Ford Motor Credit the Finance manager is going to tell Ford that you have taken there approval in ADP/Dealer Trac.  Furthermore, have you ever looked at an actual copy of your Credit?  Soft pulls are still listed but not shown publicly.  This is how all inquires should be treated.  It should not effect your credit ratting when talking to multiple financial institutions to gain a better interest rate.  

 

Please explain the imposed risk to any financial institution if the system worked like this. 

New Member
mwcreditexp
Posts: 5
Registered: ‎02-09-2013
0

Re: Credit Agencies Overhaul

Ha, even 60 minutes had a series on about how the credit bureaus need overhauled just watched it.

 

http://www.cbsnews.com/8301-18560_162-57567957/40-million-mistakes-is-your-credit-report-accurate/

New Member
mwcreditexp
Posts: 5
Registered: ‎02-09-2013
0

Re: Credit Agencies Overhaul


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