While several years ago, a solid credit score alone may have been enough for many people to qualify for a loan or credit card, many lenders are now giving consumers' credit reports a more thorough review.
In the past, many of those giving small loans felt that looking through a consumer's detailed credit report wasn't worth the effort, the Atlanta Journal-Constitution reports. However, following the passage of the Credit CARD Act, lenders need to confirm that borrowers should be able to repay any loans, and are paying more attention.
Some experts told the paper that the increased scrutiny may hurt some borrowers due to the impact of inaccurate or unfair marks on their credit reports.
The source says the actual prevalence and severity of those errors is disputed by credit reporting agencies and others. Those who review their reports and notice the errors can challenge them, but many don't know to look.
Experts added that the more in-depth review of credit reports could also help borrowers with little credit history on file. Even though their credit history is relatively small, positive trends could still allow for them to be approved for a loan.