Do you know your bankruptcy risk score? Apparently, your lender knows this score and isn't telling you?
here is an article
Customers whose credit scores are on a downward trend are finding themselves on the receiving end of more aggressive action to limit or cut off credit.
And more lenders are requesting an Equifax product called "bankruptcy scores" that expresses the probability that an individual will be bankrupt over the next one to two years, Adams said.
If the bankruptcy score is a metric lenders are using to deny credit or increase rates, then the public has a right to know their score. As Helen Chernikoff writes, the banks are going to extraordinary lengths to avoid lending people money.
U.S. consumers are falling further behind on their debt payments even as both borrowers and lenders struggle to keep the debt burden from getting even heavier in the face of a worsening recession and employment picture, a credit bureau executive told Reuters.
Dann Adams, president of U.S. Information Systems for Equifax Inc <EFX.N>, said consumers are missing payments on mortgages, credit cards and auto loans, prompting lenders to further scrutinize borrowers' profiles for signs they should clamp down on credit.
The Obama administration should go to war against the credit bureaus because they have crossed the line from merely reporting people's payment history to packaging new programs to deny people credit.
Recently, I tried to add some positive information to my credit profile. I own a home, and my mortgage lender wasn't reporting my credit history to two of the major credit bureaus. Yikes!!!! I have 55 months of on time home payments. So if I get a strong bankruptcy risk score on one of these credit reports, it would inaccurately reflect my true creditworthiness. I am certain other people's records are incomplete.
I honestly don't think we can solve the credit crisis unless we force some new regulations on the credit reporting agencies. We must empower people to make sure their credit reports are accurate and timely. Anyone dealing with the credit bureaus know they are a pain in the butt. You really have to be aggressive in cleaning up your credit and keeping your credit clean.
I think the time has come for a new round of regulations on the credit reporting agencies. One suggestion to help consumers, force the credit bureaus to have live representatives in each county in the United States. Allow people to make an appointment and talk to real live credit representative to dispute or update their credit files.