Define "Credit Bureau"
Define "Credit Report"
Define "Credit Score"
Where do I fit into all of this?
How do you help?
But isn't it illegal to use 3rd party help?
How much can I expect my credit score to increase?
Am I guaranteed results?
How long will all this take?
Define "Credit Bureau"
A "Credit Bureau" (also called a "Credit Repository") is a privately owned company that amasses and stores records on the payment patterns and credit history of millions of individual consumers. They generate profits in the billions of dollars by selling these records to potential lenders who request them.
They are not government agencies and are in no way affiliated with the US government. But they nevertheless have enormous power and influence over the lives of individual Americans!
There are three major credit bureaus in the US. They are:
Experian
Equifax
TransUnion
Define "Credit Report"
Gathering information from public records, lenders, debt collectors and the court system credit bureaus put together information on individual consumers into a file called a "Credit Report."
Your credit report includes information on your accounts with mortgage and car loan lenders, merchant lenders and credit card companies.
It also includes public records such as repossessions, court judgments, liens, foreclosures and bankruptcy.
Now when a lender is evaluating a loan applicant on his credit worthiness, he will contact one (or more) of the credit bureaus and buy a copy of the credit report for that applicant. Based on the information in the credit report and "Credit Score" the lender will decide whether the borrower is a good risk or a poor one.
Based on his decision the potential borrower may be granted or denied a loan. If he is granted a loan, the credit report and score will determine what interest rate he will have to pay.
Define "Credit Score"
Your credit worthiness is reflected in your "Credit Score". This is a 3 digit number assigned to you by each credit Bureau based on your credit report. The higher your score, the better.
This table will give you some idea of what constitutes a good - or bad- score.
Below 585 Very poor
585 - 669 Poor
670 - 699 Fair
700 - 729 Good
Above 730 Excellent
The bureaus use different methods of determining credit scores, and so your credit score will be different based on which credit Bureau is reporting it. But they are likely to be in the "ballpark".
To get your credit score in credit report right now click here.
In computing your credit score the credit bureaus consider five basic factors in various degrees, approximately as follows;
History of Payments 35%
Have you made timely payments on your bills?
Have you made payments late?
How late have they been?
How often have payments been late?
Have accounts been turned over to collection agencies?
How many collection accounts are there?
Does your report show repossessions?
Does your credit report show a bankruptcy?
Present Level of Debt 30%
What amount do you owe, total?
How Long is Your Credit History? 15%
How long have you carried debt? Lenders would rather see a longer history (of positive accounts) rather than a shorter one
Types of Credit 10%
Most accounts are either "revolving" or "installment" accounts.
Mortgage and car loans are of the installment types. You pay a predetermined amount at regular intervals.
Revolving accounts (like credit card accounts) are more flexible and are not paid in predetermined amounts, but they often do require a minimum payment.
Lenders prefer to see a mix of both types.
Pursuit of New Credit 10%
Have there been lots of recent "inquiries" (have potential lenders recently purchased your credit report)?
If potential lenders see too many recent inquiries it makes them nervous. It might mean the borrower may be "getting in over his head".
Where do I fit into all of this?
Credit bureaus keep records on millions of Americans, so it should come as no shock that there will be a few mistakes. But sadly there are more than just a few. In fact, it's estimated that anywhere from a third to a staggering 90% of all credit reports have mistakes.
Let's put that another way - even using very low figures there's a 1 out of 3 chance that your credit report contains inaccurate information!
Considering how important your credit score is, those are NOT very good odds - and that's based on the LOW estimate!
And how many mistakes does it take to harm your credit score?
............ It takes only ONE! ............
Now one would think that when it comes to something as important as your credit ... something that affects your life to such a degree ... that there would be more effort made to be sure credit reports are accurate.
Are you thinking right now "there ought to be a law"? ...
Fortunately, there is! The United States Congress passed one to address the problem ... the Fair Credit Reporting Act, or FCRA.
Under the FCRA consumers have the right to challenge the accuracy of information in your credit report. The credit bureaus have 30 days to investigate consumer disputes. If they fail to verify that the information is accurate within 30 days, they must delete it.
That's wonderful news for consumers. But … there's a problem.
Looking at it from the credit bureaus' perspective, it's an unwelcome law. There's absolutely no advantage for them. It just means lost time, money and productivity.
So they put roadblocks in the way of the consumer. They know how to utilize a "loophole" in the FCRA, the "frivolous" issue. The credit bureaus don't have to investigate a dispute they deem "frivolous". And worst of all, it's the credit bureaus who initially decide whether a dispute is frivolous.
Kind of like "putting the fox in charge of the henhouse", isn't it?
As you can well imagine, the bureaus are quick to label disputes as frivolous, even if they are not. And while the consumer can always challenge them in court (which is not a big problem … if you've just won your state lottery!) most people just can't afford to hire the high priced lawyers that the credit bureaus can ... especially those who are paying shockingly high mortgage rates because of mistakes on their credit report!
How do you help?
We're well aware of the "roadblocks" the credit bureaus use to frustrate citizens and obstruct their efforts to remove erroneous information from their credit report. Utilizing your rights under the Fair Credit Reporting Act, we aid you in challenging the accuracy of data on your credit report. We help you to get accounts deleted, that could be negatively impacting your credit score.
We know how to deal with the credit bureaus and make things happen!
But isn't it illegal to use 3rd party help?
Although the credit bureaus don't want you getting help in disputing negative accounts on your credit report, don't EVER let them convince you it's illegal to do so. It positively is NOT!
Another trick they employ is to reply to your dispute and try to convince you that utilizing help is a waste of your money, and that all credit repair companies are scammers!
And while it's true that some are, what the bureaus are trying to do is NOT to protect consumers ... it's to protect credit bureau profits by putting obstacles in the way of consumers!
Under the FCRA every person has a right to challenge - on his own - information on his credit report. But likewise, everyone also has the right to prepare his own tax return. And yet, many would rather not prepare their own taxes, but choose instead to hire an accountant.
When you put your credit in the hands of an expert, you stand the best chance of raising your credit score ... and getting back the good credit you deserve!
How much can I expect my credit score to increase?
There will be variation in results, but most of the time there is going to be major improvement.
And, bear in mind!
Regarding your credit, ANY improvement could have a huge impact on your personal and financial life ... impact in the form of lower interest rates, the ability to get loans that were otherwise out of reach, and less stress and mental anguish.
Am I guaranteed results?
No one can guarantee results in regard to improving your credit. And no REPUTABLE company will.
Every person's situation is different. But most of the time there will be major improvement to one's credit report and credit score ... improvement that will enable the client to get a mortgage, a car loan, or a credit card ... and at a much lower interest rate.
Don't forget - depending on your situation even ONE mistake on your credit report could mean a difference in your credit score - and in whether or not you can buy a home.
How long will all this take?
That will depend on your own personal circumstances. It took many years to form your current credit history, and it's not realistic to expect exemplary credit overnight.
Nevertheless, there are cases where major improvement could result in a little over a month. Other times it can take a few months. It can take a year or longer, but this is rarely the case.
But most of the time you're likely to see major improvement in your credit in 4 - 8 months time.
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