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Is new credit report too invasive?

The new CoreScore report and a new credit score based upon it will tap information the three major credit bureaus don't. Is it fair to consumers?

By MSN Money Partner Dec 14, 2011 5:19PM

This post comes from Jeanine Skowronski at partner site MainStreet.


MainStreet on MSN MoneyCoreLogic debuted a new credit report in November that incorporates data from sources that traditional credit scoring models have previously overlooked.


These sources will include information on lease applications, mortgages with lenders that don't report to the major credit bureaus and homes owned without any credit obligation, such as those paid for with cash or ones that were given as gifts. The new scoring model will also include nontraditional lending data from payday lenders, rent-to-own agreements and specialty installment lending instruments like used-car loans.

The report is meant to provide the foundation for a new credit score the analytics products and services company will launch in partnership with FICO in 2012. CoreLogic says it developed the new score to help make credit available to those who might not have otherwise been granted it.


"Until now, consumers who have used nontraditional credit or never purchased a home may have had a difficult time qualifying for loans and credit cards," Tim Grace, senior vice president of product management for CoreLogic, said in a written statement. "The CoreScore credit report will allow these individuals to be recognized for how they have managed their finances."


But consumer advocates worry that the new scoring model will actually do the opposite of what it was designed to do. Post continues below.

"Widening the scope of information could create real problems for low- and moderate-income consumers," Ira Rheingold, executive director of the National Association of Consumer Advocates, says. He adds that using information from payday lenders and debt collectors, which don't exactly have reputations for being consumer-friendly, is likely to lead to more unnecessary blemishes on a person's record than establish a good payment history.


Additionally, he says, "there are lots of reasons why you might receive an eviction notice that don't necessarily have anything to do with not paying your rent." Low-income consumers, for instance, could withhold rent payments because the conditions in their apartment buildings are unsatisfactory.


"You're looking at more records, but how much of them are garbage?" Rheingold says. "(These sources) may not paint an accurate picture of who the consumer really is."


But CoreLogic says the score is also meant to let all "consumers see a more complete picture of their credit history and other factors that may bear on their creditworthiness and thus enable them to better manage their finances and credit choices."


The company also maintains that consumers will be able to easily dispute any misinformation they find on the new report.


"As with other credit reporting agencies, consumers have the ability to dispute erroneous information quickly and have it accurately resolved, or to even freeze access to their credit information all together," Grace said.


More on MainStreet and MSN Money:

Dec 15, 2011 1:29PM
As a real estate attorney, I have closed hundreds of mortgage loans where people paid disputed claims and even claims from entities they had never heard of on accounts they could not identify simply to get their home loan closed.  I think that credit reports are used to scam a great number of people and since the FTC has never effectively exercised its mandated duties, they should be outlawed and a less corrupt, less invasive of personal privacy and more accurate system devised. 
Dec 15, 2011 12:46PM

One sentence for the credit agencies.


Stay the *Bleep* out of our lives.


These people should be outlawed and jailed for the harm they do to people on a regular basis with their screw ups.

Dec 15, 2011 9:34AM

As with the present system disputes will be a joke. I had my identity stolen 20 years ago. He didn't even use the same first name but had my social. Gave police and everyone else who I talked to his real name (I found out who did it) and disputed every one of the bogus accounts he had opened to no avail. The accounts that had been opened, with a different first name, finally disappeared from my report after about 7 years. None of my disputes were honored (I was deployed in the military when the accounts were opened and charges made)


And they want another useless bureaucracy, that WILL cost the consumer money, to further perpetuate the madness.

Dec 15, 2011 10:34AM

"As with other credit reporting agencies, consumers have the ability to dispute erroneous information quickly and have it accurately resolved, or to even freeze access to their credit information all together," Grace said.


What a cartload of horse hooey.  We all know the bureaus keep a hotlist for politicians and other important people so there is an appearance of quick and accurate resolution of errors, but the average person can't get negative information corrected even if it is blatantly wrong unless the reporting company agrees.  The bureaus just parrot what is reported even if it makes no sense or proof is shown otherwise.

Dec 15, 2011 1:21PM
In 1980 I got my first car loan.  My banker, Kathy Martin, looked at how much money I took home, what my bill payments were and any previous credit payments I had made.  Based on THAT INFORMATION ALONE, I got my car loan.  I did several other loans with her over the next 7 - 10 years.  She knew ME, personally.  Today, it isn't worth it to have a personal relationship with your banker, because you're just a 3 digit number.  Credit scores are the biggest scam ever forced on the American public.  What in the hell does my credit score have to do with car insurance rates?!  Personally, if someone doesn't want to do business with me because of this mythical 3 digit number, then EFF 'EM!  There is ALWAYS someone else to do business with.  Of course in my opinion, cash still rules.  I haven't found anybody who'll turn that down yet.  For the record, my credit score is 740.
Dec 15, 2011 1:44PM
If they want to sell information on me then they should pay me a fee everytime this information is accessed. Fed up with the everyday intrusion into our lives!!
Dec 14, 2011 8:07PM
Why is it that any company can put negatives in your credit report without ever telling you?  Oh, sure you are able to get a "free" copy of your credit report once a year (yea, like you can actually do that without giving the Big 3 more personal information!).  Companies should be required to send consumers the same information that they put into your credit report, and by Certified Mail.  They can ruin a person without ever telling them. 
Dec 15, 2011 3:50PM

Too many have access that have no right, employers and insurance companies for example.


These are not public records, it's time to legislate for privacy!

Dec 15, 2011 1:51AM
They are able to share info about you without informing you because they paid big bucks to the worthless senators and members of the house.  That is why, they are able to bypass the "Privacy Act of 1974".
Dec 15, 2011 5:21AM
We need another Credit Rating System like a hole in the head.
Dec 15, 2011 5:39AM
Everybody should know by now that the so-called credit rating agencys are corrupt and in bed with the bankers to ruin everybodys credit so they can charge more for interest. This money game in this country has become public enemy number one (1) and it's time the people start pushing back. Thats what the protest movement is all about and it's time for all of us to get on the bandwagon and start kicking these crooked politicians out of office and put the other crooks in prison.
Dec 15, 2011 2:06AM
There is a cure for this type of privacy invasion.  We can determine the home addresses of the CEO and Board of Directors of every company that attempts to manipulate  us economically. Post their private home addresses, vacation homes and relatives abodes on every social network available and let the people decide whose privacy is more importanant.  Surely the 1%ers don't really believe that they are immune from exposure!  There are disgruntled employees in EVERY organization that will gladly hand this information to us.  WE have the power, WE just have to start using it to defend ourselves against those who would enslave us with a credit report number.
Dec 15, 2011 3:10PM
This is inexcusable! The whole 'credit rating system' is a scam to begin with! Remember the a$$clowns who said that bundling the subprime mortages was a great idea?? Now, with this new system, they're going to add millions of Americans to the so-called bad credit tier. Congress MUSt act on this. I plan on e-mailing my state rep and tell him that enough is enough. The bull$hit has been piled so high in our financial system that the stench is unbearable! Angry
Dec 15, 2011 6:32PM

Now here's a good reason to be paranoid - last year I decided to rent out a home I don't live in anymore (long story).  For $30, I was able to get full credit reports on two strangers, with virtually no questions asked by the reporting agency.  I had to acknowledge that I was using the information for "legitimate" purposes, but nobody really verified this.  And why should they?  They just earned $30 for electronically un-locking a file.  There is no incentive to check the intentions of someone who is giving you money.


Guess what folks, if I can get my hands on this information, just about anybody can.

Dec 15, 2011 1:29AM
It is deeply disturbing to learn that yet another credit bureau is trying to do the consumer a favor.  No thank you.  They know, like we know, that this is a farce but they don't care.  I really don't understand the point of it all because if no one can get any credit and it takes credit to buy anything or better yet to now get a job, it leaves most Americans in dire straits.  I'm really starting to wonder if this country is really still run and owned by Americans because what is happening is quite evil.  Instead of spending our time being hateful toward one another, and discussing who is wrong, Obama or Republicans, the country is slipping out of our hands.  Our rights are slipping away quickly.  Our privacy is no more.  Those that are leaving this world now are the lucky ones and those of us left on this earth are truly going to pay the price for greed, hatefulness, and sin.  Occupying Wall Street is a joke.  Get off your sleeping bags and don't buy products owned by Wall Street.  Don't do business with banks who do not value your business. Get rid of every single congressman who is not doing what is best for Americans. Tell them to save their money running for office and invest it in America.  What is happening is sinful and we almost deserve it for sitting back complaining and not taking legitimate action.
Dec 15, 2011 6:15PM
Great - one more entity to deal with that I have no control over, yet has huge control over me. Why on earth would anyone in their right mind start up yet another credit reporting bureau? Oh wait, the answer is so they can sign lucrative contracts with financial institutions for adding another layer of crap to the process. 
Dec 23, 2011 6:39PM
America needs Another Credit Report like it needs Another A hole....
Dec 15, 2011 4:45AM

Screw credit and use cash whenever possible. 

Dec 23, 2011 4:32PM
I live in the credit world,getting people loans all day. The credit bureaus are a farce. The original scoring model was made to predict the chances of a person filing bankruptcy. That is why too many inquiries hurts you (appears your over your head in debt and borrowing to pay your bills).  The credit bureaus have found that selling credit scores is a way to generate more revenue. There is no true federal regulations on credit reporting,so they can add or subtract anything they want from your file.Read between the lines here,they arnt making this new model to help people get loans.They have developed it to have a new product to sell banks, and to help their partners in crime (lending institutions) to find a reason to offer higher rates on loans.Of course,under the guise that we are helping you when no one else would. The funny thing about my comments: Im an optimist,this story just hit me wrong because from perspective it was so obvious whats really going on.
Dec 15, 2011 12:26AM

Occupy protesters - protest this....Credit bureaus have long been bastions of inaccurate data ruining many lives in the process. Many people (doctors and lawyers included) have undergone foreclosures, etc... Other people who may have had their credit ruined by medical expenses, identity theft, or other reasons through no fault of their own (like inaccurate credit reporting), would still have good credit scores for debt they are responsible for on their own. So, why not give the consumer a fair shake like the failed banks or auto makers and others who get a free ride when they fail to run their business successfully?

How? My suggestion is to erase everyone's credit or get rid of the credit bureaus altogether. Think about it. What would REALLY stimulate the economy? All "rebates" or "credits" to the American People come in the form of an "on paper" method of the government or other businesses. At least this way we all get a 2nd chance and the credit bureaus (if they are necessary any longer) should and will have to adhere to stiff penalties for inaccurate reporting of credit information. Credit bureaus are an invasion of privacy at best and have political agendas and are in bed with the banks, insurance companies, now our potential employers (gee wont that cause more unemployment?) and financial community. We sit here and struggle with what they deem our "Score" should be. It's crap.

So, bail out the American people. The trillions wasted could be given to each person (about 30,000.00 each or so), erase their credit scores (everyone will have perfect credit and at least 30,000.00 in the bank. A great incentive for banks to loan money again. Spending will happen and everyone will be happy. Sure, some will faIl, but, many more (given a 2nd chance) will maintain great credit and succeed. Contact me directly to start this from the grass roots up. Get rid of the credit bureaus!! At least make them accountable for being inaccurate and coming up with yet another **** way to edge credit scores down. again not the consumer's fault but we get the brunt end of the stick in our eyes as usual. Make credit bureaus accountable for inaccurate information or get rid of them. It's all **** and a waste of our time trying to cope with them. The "economic dictatorship" will not allow it because the whole point was to sabbatoge everyone's credit score so only the sparkling credit scores will be able to borrow... BTW I am debt free.

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