to me it bothers me that people outside of the faction (like guards) even know I joined a faction such as the companions or mages guild

since they are not part of the faction how would they know what rank I am in said faction or what I or my fellow faction members have done ?

Because some of those factions save the world. And because the dialogue is inconsistent. And because nothing the Dragonborn does matters at ALL in the world.

Example: College of Winterhold. Everyone knows what happened with Ancano at the College. They also know that it was stopped. But they don't know that I stopped it? Or that I'm the Arch-Mage?

Well the Companions for one aren't exactly a hidden organization, they're pretty much the Avengers of Skyrim. So when some new blood comes along and actually runs the show, it really wouldn't be a secret. I haven't completed the TG line yet but I doubt anyone outside the guild addresses you as guild master. There's of coursealso the brotherhood, but the only dialogue I've heard on that is "Psst, hey, I know who you are. Hail Sithis!"...which for me occurred after the quest where I was sent to kill the Emperor and Astrid even says that she's got some of the guards in her pocket.

There's some weird dialogue I get though where the guards randomly say "You...I know who you are, and who you're with. Just please...these are good people here, mostly". I'm paraphrasing that so it's not exact but I don't know what quest it connects to.

but ther are guards out side of the faction with no entry into the college how would they know what even transpired these arnt your telepathic guards of oblivion that knew all

All the guards in Whiterun know is: "I heard you were at the wedding reception in Solitude where the Emperor's cousin and husband were killed and were seen leaving.... nevermind... I don't want to know."

About the College: One Riften guard did mention that he heard that I heard I played a big role in fixing that mess at the Mages' College. And the guards got involved at the college because a dragon attacked Winterhold when I fast traveled there just before heading up to the college, and then after dispersing the fog up on the walkway another dragon attacked and some of the winterhold guards followed me up onto college grounds to take down the dragon. I think there's some stuff scripted that is there for the "just in case" random encounter stuff.

But they're right about the Companions. That's as far as I've gotten. Fetching the mead.

I think some of the information depends upon what side of the civil war line you're on. I have a house in Riften and Whiterun.

They seem pretty psychic in regards to anything else you do.

People like to gossip and word gets around.

For some reason after 1.4 I've had all kinds of guards thank me for helping the East Empire Company, telling me they're psyched to be able to score "some of that fine aged Breton cheese".

So you're harbinger of the companions but the guards still mock you as the newb who fetches their mead. I thought the Companions were respected, but apparently not, if the common guards talk down to the Harbinger like that!

Right, like don't go fiddling with any locks, the fur coming out of the ears comment, how do they know I'm good at alchemy, and conjuration? They seem to know a lot... and if I look like a lock fiddler, maybe I should just be arrested.

I have always liked "if I catch your hand in my pocket, I am going to cut it off"

Instant challenge for me to steal something, now if guards just got paid something in this game.