Applying for any sort of credit requires that you allow the lender to look into your financial past. This includes credit cards, mortgages and other loans. This information reflected your payment history and any delinquent accounts that you may have. For many consumers this, alone, seemed like a huge divulgence of personal information. However, it was required to obtain the money that you needed.
Now, lenders are receiving an all new way to look into consumers past. In addition to the factors that they looked for in the past, they can also access delinquencies in rental checks, eviction notices, missing child support payments or judgments, payday loans and all of your repayment history.
Companies are not offering this extensive view of your credit history to provide a comprehensive report for your lenders. Right now these types of reports are only being used for mortgages and home equity inquiries. Plans are already in the works for it to extend to other types of credit, as well.
This is bad news for consumers because these reports may turn up black marks that were previously undetected by other credit reporting agencies. For example, the new reporting methods may turn up mortgages provided by small time lenders, tax liens and if you own more on your home than it is worth. While all of this information is public, it is now pulled together in a convenient location for creditors to get a full view of your history.