MoC 
Permissible purpose is defined in the Fair Credit Reporting Act for those who request a consumer credit report. A company who wishes to view a credit report must have what is known as “permissible purpose”. This means, the company must have a clear and actionable reason to request a report. Permissible purposes are:
A soft inquiry is a non-credit related inquiry on a credit report. A perfect example of a soft inquiry is a consumer requesting his or her own report. Only the consumer sees soft inquiries, and they do not affect credit scores (FICO) or credit application decisions. Employers, insurance companies, pre-screened or pre-approved credit offers or … Read more
A security alert is issued when a consumer has been the victim of lost or stolen identity. Security alerts are reported to the three national consumer credit reporting agencies, Equifax, Experian and TransUnion, who in turn include the alert in all credit requests. The Federal Trade Commission imposes regulations on credit grantors to act accordingly, … Read more
A high balance is reported on trade lines indicating the highest balance the consumer has carried on the product. For loans, the high balance is the initial loan amount, which gives the creditor a good impression of the consumer’s ability to service the debt when compared to current balance. It is also useful in reviewing … Read more
A high balance is reported on trade lines indicating the highest balance the consumer has carried on the product. For loans, the high balance is the initial loan amount, which gives the creditor a good impression of the consumer’s ability to service the debt when compared to current balance. It is also useful in reviewing … Read more
Hard Inquiries are made by credit grantors when a consumer applies for a credit product. The creditor requests a credit report for review from one of the three major reporting agencies, Equifax, Experian and TransUnion to evaluate creditworthiness. This request generates an updated report and, if requested, a credit score. This action is considered a … Read more
Derogatory information is unfavourable or negative information on an individual’s credit report. This includes late payments, court judgements and other legal filings, accounts closed or written off by the credit grantor, accounts included in bankruptcy or consumer debt proposals, or other critical information about trade lines. In addition, accounts that have been manipulated due to … Read more
Decisioning is the process of coming to a judgement on a matter under review. In terms of finance and credit applications, it is the decision to approve, deny or condition an application. Automated Decisioning is used when a full credit report review is not necessary. For example, if a consumer applies for a bank account … Read more
A co-signer, co-borrower, guarantor or co-applicant is an additional borrower on a loan, credit card or other credit product, who becomes liable for payment of debts should the primary borrower fail to pay. A co-signer is often required by credit grantors to strengthen the application if the primary borrower does not have adequate income or … Read more
The Fair Credit Reporting Act (FCRA) provides two options for disputing inaccuracies: direct and indirect. Direct Disputing This occurs when a consumer contacts the source of the incorrect information directly, also known as the data furnisher. For example, if you see a late payment on your credit report from Bank of America but know that … Read more
We have noticed an upsurge in consumers have their credit card accounts closed due to inactivity. The lesson here? Use your cards regularly to keep them active. Card issuers are increasingly vigilant in monitoring card usage. In the past, an unwritten rule allowed a card to sit idle for up to six months. This should … Read more