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More comprehensive CoreScore may unjustly harm consumers

A new kind of credit report called CoreScore digs deeply into a consumer's payment history, unearthing information about electronic payments and past rent.
 
This new credit report is causing controversy that has some arguing it will help consumers benefit from payments for things that had never previously been counted and others arguing that consumers could be penalized for things they had the right not to pay for, ABC 7 Los Angeles reports.
 
"Now consumers who deserve the credit are going to get it," John Ulzheimer, a spokesperson for SmartCredit.com, said, according to ABC 7 Los Angeles. "Those who deserve it at competitive terms are going to get competitive terms, and those who frankly don't need to be saddled with that type of debt are going to be denied."
 
The report includes rental applications, evictions, auto title loans, payday loans, rent-to-own transactions and payments to the electric company. The company gets the information from the public records system and not everyone is comfortable with the extra sharing. Those who pay bills that weren't on traditional credit reports see it as a plus, though Core Logic acknowledges that the extra information could hurt some and help others.
 
"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," Chi Chi Wu, a spokesperson for the National Consumer Law Center, said, according to ABC 7 Los Angeles. "Is the new credit report going to reflect that?"
 
Both Wu and Ulzheimer agree that consumers should look over their personal reports to check them for errors.

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