Cultural Bias? Not!
Okay, first off this is not an article about cultural bias towards different names. This is a story of how the credit bureaus computer systems currently work and something as simple as a name can affect the accuracy of your child’s credit report in the future as well as affect the ease at which items are able to be removed.
Nothing but a big ol database!!
The first thing we need to know is that a credit report is just a big ol database, there are not hundreds of millions of reports stored on some big computers out there. Each and every credit report and score for that matter is developed on the fly at the moment it is requested. The information on the report is retrieved based on the information submitted by the person requesting it. This is usually Your Name, Address, and if available your SS# (Lets call it Technical Data)
The first thing the credit bureaus do is try to find this “Technical Data” in their database, they do this, not by looking for exact matches, but by looking for something “close enough”, You see you, I, and just about every other business in America keeps records by SS#, If a business doesn’t have your SS# in their files then you don’t exist. The credit bureaus however want to be like NCIS when it is looking at facial recognition software to find a match. NCIS knows they have their man when there is an 85% match. The credit bureaus have even lower standards.
Did you know that a collection agency doesn’t need your SS# in order to post a negative to your account? This is because MOST original lenders don’t sell your SS# to the collection agencies, they just sell your other data, Name, Address, Acct#, Balance, Etc. The collection agencies upload what they have and they rely on the credit bureaus to pick the right person. This means if your name and address is a 70% match there could be some errors coming.
So How does this affect my kid?
Will your precious little child face financial challenges? Will they have a rough go of it? Do they already have an inheritance lined up and won’t ever have to worry about paying the bills? I ask these questions because knowing the answers can give you some insight on how to best name your child!!
Your Child Is Already Independently Wealthy, And You Are Not Famous!
If your child is a heir to hidden wealth, meaning that when you name him or her millions of others won’t follow in your footpath it would be best to choose a very unique name that is easy to spell. Eg. Both Dolly and Clancy are easy to spell names that were given to less than 25 children last year. This means that the liklihood of your child sharing the exact name with someone else reduces and the chance that erroneous data gets on his/her credit report is limited.
Your Child Is Like The Rest of Us, and May See Financial Struggle
If your child has a common name or frequently misspelled name they will have a better chance of getting their own negative items removed from their credit report in the future. If Tom Smith claimed that an item on his report was an error there is a higher chance of the credit bureaus believing him than if his name was Clancy Adomyets because there are probably a million Tom Smith records but only 1 or 2 records for Clancy Adomyets
Sometimes it is good to be uniques, other times not so much. Help a child out give them a name their credit will thank you for.