Monitor Your Credit History With Blockchain Technology

Monitor Your Credit History With Blockchain Technology

Feelium ICO

Credit reports and scores are of vital importance in the process of buying a car, getting a job or even when applying for a mortgage. How many people are familiar with the processes behind credit reports, credit checks and credit sharing?

In 2017, the Equifax hack opened the eyes of millions of Americans who assumed that their credit scores were safe with credit reporting agencies, who held their most personal information. The reality that credit information could be stolen in an instant was shocking.

Credit bureaus and corporate have used their customers’ personal information for business growth, but data leaks are increasing and the public now demand a solution against these breaches. The rise in blockchain technology is a promising premise to secure credit reports and information.

Through blockchain technology, people will have more power over their personal information; the system is completely transparent. The technology is a decentralized, distributed and secure online ledger that is accessible to only authorized personals. The people will have power over the storage and sharing of their credit information.

When the credit score industry was investigated in 2013 by ’60 Minutes’, they found that at least 1 out of 5 Americans have a faulty credit report and that 1 in 10 of these mistakes could be harmful to the credit scores. These scores visibly impact the lives of people, affecting their ability to make necessary financial decisions. In the current system, if a citizen’s credit history is stolen or ruined, the process of fixing it is very tedious and there is absolutely no guarantee.

According to the study, most of the people who had been trying for over a decade to fix their credit scores were not even victims of credit or identity theft; they were just victims of mistakes in their credit. The mistakes range from people with similar names, similar social security numbers, ethnicity, etc.

Not only do the customers have very little insight into credit reporting processes, they have very little control over it. Blockchain technology is about to change that.

The credit bureaus collect valuable information about people which is not accessible to the average citizen. Blockchain technology will remove several levels of barriers between the people and their credit data. By making the credit reports open to the people through blockchain technology, dependency on third party agencies for a snapshot of credit reports will be removed.

People will be able to directly show their credit reports to banks, mortgaging firms, educational institutions, jobs, etc. The credit information will remain safe on blockchain technology as the distributed system prevent anonymous hacks. Data will no longer be saved on massive centralized ledgers which tempt cyber-criminals. Information will saved in a decentralized fashion.

Blockchain technology will put the power over credit scores right back into the citizens’ hands.

Blockchain technology will actively prevent third party interferences. Feelium is a blockchain technology platform which offers smart contracts in lieu with escrow services, which are self-regulatory and extremely secure. Online trades, data transfers, contracting services, etc are just a few of the utilities of the Feelium escrow services.

Hayden P.

A blockchain and cryptocurrency enthusiast

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