I know what you’re thinking… finally someone is talking about our credit reporting system. And better yet, that someone will do something it. #GovernTogether.  Our lives revolve around our credit score these days.  We depend on it to sustain basic functions of living if you think about it.  Most of us need a loan for a car, which requires good credit, or your payment will be so high that it will suppress your ability to get ahead.  We need loans for houses, business startup, medical expenses, and many other things, all which require good credit.  For any average American, you will know what a struggle maintaining your credit score, and repairing it when necessary is, so it’s time we fix it.

Our social security numbers were never intended to track credit, it was designed for only one purpose and that was to track social security.  A system that was designed for one thing, then became used for multiple and we wonder why there is problems, no we really don’t.  The first thing we need to do is abandon the use of our social security number as a means to track credit and revert it back to its original purpose.  Then we need to establish the Credit Reporting Bureau (CRB) that’s sole purpose will be for credit tracking.

The CRB would establish set guidelines on how exactly certain reporting’s would raise or lower your credit score and for how long.  This way there would be no question on how your credit score would be affected and for how long.  The time period is a major issue and one missed payment cannot keep hindering your life for years, it’s just ridiculous.  I think that if you miss a payment and then show three straight months of on time payment, your score is returned to normal.  It’s obvious it was just a bump in the road and your back on your feet, you should be rewarded, not knocked down after you fought so hard to get back up.

The CRB would also handle something we currently don’t have really anything like, an appeals process.  Currently we can make fraud claims with the credit reporting agencies, but even doing that doesn’t help our credit score, it seems it always goes down no matter what we do.  I think that you should be able to appeal the reporting and submit a rebuttal with evidence to prove it was a wrong reporting.  During the appeals process, your score would have a stay and not be lowered until the appeal was complete. 

There cannot be a process that must be conducted prior to the reporting as in a hearing, it would simply overburden recourses.  The reporting agencies would be bound by guidelines and regulations that would bring very harsh penalties for false reporting to prevent such a thing.  Most reporting is fairly accurate, we must be honest about that, but it’s the road to recovery that needs the most fixing.

An unintended benefit of the separation of agencies between the Social Security Administration and the Credit Reporting Bureau would be a fraud preventer.  With new up to date computer systems in-taking all brand new applications that must be verified by several pieces of identification, we would be able to cross reference the Social Security data bases to discover fraud.  I think that it should be required that everyone provide a thumb print as part of the identification process, which all but assures a fraud free system that will then weed out the Social Security fraud.  In the end, the amount of money saved on yearly Social Security fraud would more than pay for the creation of the new agency as well as protect our private information and reform a seriously broken credit reporting system.