Credit Bureaus only verify 5 out of 9 digits on your SSN when running your credit!

by User Not Found | Oct 15, 2013

Instant results do come at a high cost (Another good tip from Credit 360 Consulting)

ID-1001673671-150x150The credit bureaus love making easy money and making it quickly by selling the free data they retrieved from your trail of data you left behind and in turn offering it to large credit card companies whenever you apply for credit somewhere. They provide an “instant approval” which allows you to be offered fabulous deals such as “Save 10% by applying for our (INSERT STORE NAME HERE) credit card today!” but what they don’t tell you is that the card carries a 29% interest rate and that tiny 10% discount gets swallowed up in a heartbeat. That fast approval or denial you get while actually standing at the checkout counter does carry with it a very serious potential drawback.

The only way the bureaus can offer this lightning fast decision is by only matching 5 out of the 9 digits on your credit application. Doing so allows them to get a speedy response but it also carries with it a big side effect in that millions of consumers information ends up merged with someone else’s via synthetic ID theft as described in the previous costly secret.

The bureaus could literally flick a switch and eliminate a huge portion of the identity theft in this country by requiring a full 9 digit match, but they won’t because that is what makes the credit card companies the most money!  The bureaus get paid every single time their data is pulled in that credit application. This means that these merged file issues (Synthetic ID theft) will not be going away anytime soon.  By staying on top of your personal information will help reduce the chance of this happening to you!

The above information was provided by Credit 360 Consulting.   For more helpful information and how to improve your credit, click on Credit 360 Consulting.