How I Became My Own Consumer Credit Counseling Service And Bounced Back From My Bad Credit Nightmare (part 16):

So how the heck do they create a new credit file? Is it all just B.S.?

There are millions of names floating around in the computer systems of credit bureaus. Like bees buzzing a honeycomb, hundreds of names enter and exit these systems each day in the United States because of births and deaths. It's a massive, neverending flux.. It's a gigantic identity shuffle that boggles the mind.

These systems are actually under tremendous strain because of the sheer magnitude of data collected on every aspect of American consumers' lives. Do the credit bureaus want to share and cross-reference this information? You bet they do. But, thankfully, there are legislative restrictions at work which strictly regulate or prohibit data that can be shared among these discrete systems through cross-referencing.

Sometimes, conincidentally, strangely, the names and birthdays of people who are not related to one another may be the same, even in the same city.

And remember, as sophisticated as computers are, they don't have the ability to reason and make judgements regarding the accuracy or inaccuracy of the data they're fed. The algorithms of discernment do not yet exist ... (consumer credit counseling, to be continued)