Deciding where credit is due

Observation:  If it did anything at all, the Great Recession exposed flaws in the way both lenders and consumers decide how much debt they can handle.  Well, it seems that one consortium is about to expand the scope of financial behaviors that are scrutinized in the act of building a credit report.  Click here to see that story, which appeared in a recent issue of the New York Times.

Implications:   It has been suggested that many consumers have been working to shore-up their financial affairs, and be more careful with credit.  It would appear that lenders, too, will have better tools to gage their credit practices.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.