Credit Reports

Have you ever thought about credit reports and how they impact you? Or have you ever given any thought to the workings of a credit bureau?

If the answer is a resounding 'No', you are not alone.

They offer a picture of our finances which can be used to decide whether we are trustworthy enough to lend money to. This might be as simple as obtaining a new cell phone or as complicated as purchasing a property and obtaining mortgage finance.

Credit reports are held on massive databases for almost everyone in the modern world. As computing power has advanced, so has the ability to store and analyse the monstrous amounts of data required. It is now believed that in the USA there around 4.5 billion pieces of new data being stored - EVERY MONTH!

The details stored cover almost anything. It includes details of bank accounts, loans, store and credit cards. These details are all tied together through name, date of birth, current and previous addresses and social security information. In short, a credit file is a one stop shop of personal information.

The organisations that keep these records are NOT public owned. They are in fact very profitable companies. In recent years there has been an increase in oversight and regulation, but they were relatively untouched by the hand of government in the past.

They earn their money by selling the information they hold about individuals to companies that wish to know that information. As far as we can tell, almost any firm can 'pull your credit file'. There does seem to be very little oversight in how the information purchased might be used. Whilst the majority of the information is used in honest and legal ways, it is hard to imagine that an identity thief could not also obtain these details. In theory, that puts everyone at risk.