Credit and Public Records
Our fast-paced society has come to expect and rely on instant credit decisions. Access to public records allows retailers and financial institutions to verify the identity of credit applicants and make swift credit decisions, such as automobile financing and retail credit card approvals.
Quick credit decisions are only one of the benefits consumers derive from an open system of public records; the information contained in public records also allows creditors to effectively calculate credit risks and make informed credit decisions, which has the overall benefit of keeping the cost of doing business low for all consumers.
Consumer credit decisions are based in part upon the information contained in consumer credit reports. Without access to public records, a credit reporting agency may not be able to report that a consumer has filed for bankruptcy or is the subject of a lien or court judgment. Such information is critical in allowing creditors to accurately assess credit risk.
Public record information also enables credit reporting agencies to become aware of when a consumer has satisfied his or her credit obligations and accurately report that information in the consumer’s credit report.
In addition, information contained in public records – such as Social Security number, home address, and date of birth – allows credit reporting agencies to accurately attribute credit information to the correct individual. Without access to this information, the commonality of names poses serious challenges to ensuring the accuracy of credit reporting information.
Open public records significantly reduce the cost of credit by serving as an important information source upon which credit decisions are based. This system of open access facilitates quick decision-making, reduces fraud and other losses, and improves efficiency and confidence in the consumer credit market.
