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A New Kind of Credit Report

By WXYZ Channel 7

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. But now, a new kind of credit report, called  CoreScore, contains information that digs deeper than ever into your payment  history. It details things like rental applications and evictions, pay day  loans, auto title loans and rent to own transactions. Even payments to the  electric company. 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?

“From the public records system,” Credit expert John Ulzheimer says.   “Traditionally credit reports only hold three types of public records;  bankruptcy, tax liens and judgements.”

CoreLogic 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.” And  Ulzheimer, from , agrees.

“The 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.”

But 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. For example…

“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?” Wu asks.

And what else could be added to these reports? It’s another concern.

“With the push of a button you can aggregate billion of pieces of information  about anything and turn it into a consumer report,” Wu suggests.

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 saddles with that type of debt are going to be  denied.”

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