Democrats and Republicans in Congress have a message for American credit bureaus: The current system for determining credit scores isn't working.
Credit scores are used for more than just basic loan, credit card and mortgage applications. Many landlords and apartment complexes rely heavily on them. Insurance products like renters insurance and auto policies may also require a credit check, depending on the provider.
Even some employers may seek a credit report before hiring a candidate. "There are so many meaningful things that rely on a credit score as a basis for things like terms and even the decision someone is making about you," John Ulzheimer, an expert on credit scores and credit scoring, tells CNBC Make It.
Though they're widely relied on, the credit reports of about 1 in 5 people have an error of some kind, according to a study by the Federal Trade Commission. And members of the House Financial Services Committee aren't having it anymore.
Members from both political parties grilled the CEOs of the three major U.S. credit bureaus — Equifax, Experian and TransUnion — on Tuesday, calling for accountability and change. Chairwoman Maxine Waters, D-Calif., called the hearing to discuss the current state of the bureaus after the massive 2017 Equifax data breach and to discuss proposed bills that aim to reform the current credit reporting system.