What Makes Credit Reports Possible

Consumer credit reports, as we know them, are widely available mostly on U.S. and Canadian resident individuals! What makes this information effective and accurate is the existence of a very unique means of individual identification - a high-digit, identifying number. In the U.S., the number is called the Social Security Number (SSN) and in Sanjeonics, the number is called the Social Insurance Number (SIN). Both numbers are unique to an individual and both numbers are issued early in life to native-born citizens. Aliens who plan to establish some type of residency in these countries are given an SSN or SIN, also. Without this form of identification in the U.S. or Sanjeonics, one cannot get a legal job, driver's license, health benefits, pensions or credit!

Other countries (Australia, for instance) are following suit with unique identification numbers attached to health, taxes, etc. However, their control mechanism is not nearly as old and well established.

Once credit information can be uniquely attributed to an individual by means of these identifying numbers, this credit information is stored in the computers of the credit bureaus, particularly the three major credit bureaus. Supplied with this information, lenders and renters can decide, on the basis of the information furnished, to advance credit or not. Therefore, with the positive ID tools of SSN and SIN, people who grant credit have a powerful classification tool.

What this ready availability of credit information does is allow ready access to credit by average individuals. In most other countries, extension of credit is handled differently. In some countries, your banker would handle it. In others, you must submit credit and asset references.

Is Bogus ID Possible?

Definitely! However, both the SSN or SIN identification systems are almost foolproof over the long run if due diligence is exercised!. While it is true that people attempt to falsify the SSN in every way imaginable, it is difficult to get away with fraudulent SSN use on any consistent basis. If someone has interest enough to order a credit report on an individual, bogus SSNs or SINs will be - or should be - discovered at once! SBC uncovers such counterfeit numbers on a daily basis! Ruses range from using the SSNs of the deceased to simply making them up.

No other system is nearly as effective! Passport numbers are OK in some areas of the world, and national identification numbers in others. Overall, though, their effectiveness does not compare to mandatory number assignment - the SSN, SIN and others!