A CREDIT SCORE THAT TRACKS YOU MORE CLOSELY

Have you wanted to get a loan recently, but have been turned down? This is partially because financial institutions are looking much more closely to credit ratings than ever before. Not only are banks/financial institutions being stingier with their money, but they are not going to ease up anytime soon.

One reason they are able to do this is because of a new system that has been introduced to the market. Previously, they have been able to look up your credit score. Now, they are able to delve into your past and see almost anything that has to do with your past financially. For instance, this new credit file will show whether you have missed any payments on any of your bills, whether you have to pay child support, if you have used those quick pay day loan establishments, and much, much more.

Is this providing too much information to the financial institution? Should they really need to know all of these details about you? It has come to a point where people are able to track your each and every move, every second of the day. While some people feel like this makes the world a safer place, others believe that this is an invasion of privacy.

The justification behind forming this new type of credit check is to help those giving out larger loans such as mortgages and home equity lenders a better feel on their own financials. The company who founded this new credit check also says that this new check will also help out those with better credit. It will show positive behaviors to the lending institutions.

As time goes on, CoreLogic, the founder of this new credit check, says their check will be able to show even more information as they progress. Thankfully, due to the Fair Credit Reporting Act, you have the right to dispute anything the credit check has to say about you. However, if you want to see what this credit check has to say about you is to purchase it from the company.

Personally, I believe this is just another way for companies to make the population pay more money while indirectly hurting their chances to obtain a loan in the future. Some people make mistakes in their past, why should they be judged on it for the rest of your lives. It is very similar to education. When you go to college the first time, many students are known to screw around, indirectly lowering their grade point average. Then, when they return to school, they have to work even harder to raise their GPA back up to acceptable standards. Therefore, the past haunts the future. Luckily, in the world of academia, many people will understand about the past because we have all been there. Unfortunately with our credit scores, financial institutions tend to not worry about the past because they are worried about their money at this point in time, not the past.