The next time you apply for credit, you might find out that lenders know a lot more about you than ever before.
The big three credit reporting agencies already have a good idea if you'd be a potential risk to a lender, but a fourth credit report, called CoreScore, is about to join the party.
CoreScore reveals more about how you've handled payments like your rent and electric bill.
"They get information from payday lenders. They get it from landlords, and they also get it from utility companies," consumer attorney Dan Blinn, of Consumer Law Group in Rocky Hill, said.
CoreLogic, the company behind CoreScore, said its new report allows for lenders to make safer credit decisions.
CoreLogic also said the added transparency will result in fewer delinquent rates and expanded credit offerings for consumers.
But critics argue there might be good reasons for consumers not to make payments on certain accounts.
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"The fact that they're late on that may not really be an indication of their credit worthiness," Blinn said.
Consider a payday lender charging a consumer 400 percent interest.
"A failure to make that type of loan isn't really so much an indication on whether or not a person is creditworthy, it's really more of an indication that they've been victimized by a predatory loan," Blinn said.
Core Logic told NBC Connecticut its report allows for consumers to offer explanations.
Meantime, even critics agree that people who don't have traditional credit sources might benefit from this fourth credit report.
For example, if they make regular payments to a landlord, that could be picked up and reflected, giving someone access to credit.
CoreScore becomes effective in March and consumers will get a chance to obtain a free copy of their CoreScore once a year.
It will be up to each lender on whether they accept the new report.
