Ever wonder who oversees the three credit reporting bureaus, Equifax, TransUnion and Experian, as they calculate your credit score? Well, up until now, the answer is: no one really. However, all of this is going to change. It appears that the Consumer Financial Protection Bureau will now provide some oversight over the big three reporting bureaus to ensure accuracy and consistency in how your credit score is calculated.
Overall, this should be good news for the individual consumer, but we are skeptical. Since much of our financial credit worthiness is dependent upon the scores calculated by Equifax, TransUnion and Experian, it seems only fitting that someone sees that these calculations are being done correctly and accurately. Nevertheless, the government has never been very good at this kind of thing…think Bernie Madoff. Regardless whether the government makes a positive impact, the best person to oversee your credit score is you. Make sure that you are checking your credit score at least once a year to ensure that no one is reporting inaccurately or worse yet, that someone has stolen your identity and has destroyed your credit as a result.