Highlighting the Role of Credit Reporting for Consumers
The credit report is one of the most important pieces of financial information available to consumers nationwide. It is the key to unlocking more lending options for a new home or car and even enhanced rental opportunities. The beauty of the credit reporting system is that a specific consumer’s success it entirely in their own hands. By simply living in a mortgaged property, buying a car, making purchases on a credit card, or paying off an unsecured loan, a consumer is able to build a better report, opening new opportunities. Good financial management behaviors beget positive credit report results.
The pandemic has made accurate credit reporting more important than ever. Consumers need access to safe, reliable lending options as they return to work. They may need a new mode of transportation, like a vehicle, if they have to avoid public transit. They may need more funding for equipment to work from home. The pandemic has changed the way we view our time; consumers may even need funding to open a new small business.
Certain legal protections were prudent to ensure lenders have an accurate picture of the typical consumer, not the one impacted by things completely out of their control, like losing a job as a result of COVID. However, federal and state governments have a tendency to overcorrect.
That’s why AFSA worked with state and federal legislators to ensure that consumers’ credit reports were kept intact. From Nevada to New York, the U.S. Senate to Court of Appeals, blog posts to podcasts, AFSA worked to educate policymakers about the crucial role that accurate credit reporting plays in consumers’ lives, especially at a time when reliable lending options are crucial.
All AFSA member companies report their borrowers’ payment activities to credit bureaus, helping their neighbors build a safe, sound financial life. The association will continue to fight for accurate and responsible credit reports and scores on behalf of consumers nationwide.
September 10th, 2021 by gmcgurn@afsamail.org
