by Jeff Sovern
From time to time we blog about credit reporting issues. But it is worth noting that when it operates properly, the credit reporting system is a huge boon to lenders and consumers, because it enables lenders to determine which consumers are most likely to repay a loan, which in turn enables lenders to make loans at lower risk and hence lower cost to consumers. This is pointed up by a story in today's Times, Credit Score, by Multiple Choice, about the workarounds employed in other countries which lack our type of credit reporting system. Our credit reporting system is a long way from perfect and needs fixing--something the Consumer Financial Protection Bureau seems to be working on and I wish Congress would also attend to--but an accurate credit reporting system provides enormous benefits to a lot of people.