NEW YORK ( LowCards.com) -- Credit scores are how lenders and even some insurers and employers judge consumers. For a number that carries such influence, there are many gray areas that can create problems and confusion for consumers.The July issue of Consumer Reports calls into question the value of consumers buying their credit scores. The reason? The FICO scores that millions of consumers buy each year for $20 are not the scores that car dealers, auto-finance companies and mortgage lenders use. The magazine reviewed the material that Fair Isaac (FICO - Get Report) provided to lenders and concluded that the scores consumers buy are inferior.
- Chex Systems collects checking account applications, openings and closings, including reasons for account closure. Many banks and credit unions will check this database before they approve an account.
- Insurance Information Exchange collects motor vehicle records, including traffic violations and accident reports.
- L.N. (Clue Auto Report) provides information about an individual's automobile insurance coverage and losses.
- CoreScore Credit Report collects property tax filings; rental applications and evictions; property ownership and mortgage obligation records; payday loan and online lending information; bankruptcies; liens; and child support obligations.
- The National Consumer Telecom and Utilities Exchange collects information on connect requests, account and payment histories, defaults and fraudulent accounts associated with telecommunications, pay TV and utility (electric, gas and water) services.
- CoreLogic Teletrak has databases on property taxes, flood and disaster risk, criminal background and evictions.
- LexisNexis Screening Solutions collects tenant history information.
- The Medical Information Bureau collects information about medical conditions and data from insurance applications.