Credit Probes Go Beyond Scores

September 14, 2011
Atlanta Journal-Constitution 
credit card news

When consumers apply for new loans, request a store credit card, or sign up for a cellphone, the companies they do business with may delve more deeply into their credit history than they used to. Following the Great Recession, more lenders are sifting through consumers' personal financial information in ways they have never done before, according to industry experts and consumer groups. Additionally, they are more likely to rely on information other than just a traditional credit score. Data companies are now collecting information relevant to consumers' job history, income, and net worth -- which lenders can use to flag anyone it considers a credit risk. Consumer groups acknowledge that lenders should take greater care in their lending practices but worry that incorrect conclusions could actually impede some creditworthy borrowers when they attempt to get loans.
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