A new article published at Time.com is shedding light on the various ways consumer credit reports are being used and some of the tidbits are startling.
Credit scores have long been an important aspect of a consumer’s financial life. It is a credit score that can often make or break new financing decisions or credit card approvals. With the tough economy, people are being encouraged to pay a lot more attention to their credit standing so they have the same financial options that people with excellent credit records have.
Time reports that credit scores are also no longer something just creditors take into consideration. The information contained in the report can reveal to companies a lot more than you anticipated. Some things businesses can glean from a credit history include the amount of extra cash you are likely to have on you and who is likely to take prescription medication as directed.
This information may seem completely irrelevant to the consumer but businesses are thriving on the opportunity to target new audiences with their products and services. Consumers believed to have extra income to spend can become the recipient of many new offers once the marketing executives are in the picture.
Additionally, credit reports may end up being beneficial to debt collectors. Most debtors who are contacted by debt collection agents plead poverty in order to avoiding paying off a debt. With the insider information, bill collectors would be able to decipher who genuinely has no money and who is just trying the wool over their eyes.
The FICO score, one of the most widely used consumer credit scores, has made it possible for retailers and others to figure out the behavior patterns on consumers. Everything from income ability to shopping habits can be narrowed down and sold to those who are, in turn, looking to sell.
The FTC is expected to monitor the growing trend to ensure that consumers have protected rights through the Fair Credit Reporting Act when such databases of retailer interest are sold about consumer activity, behavior, and characteristics.
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