Houston Credit Repair Coach Explains the Credit Bureau's Secrets
Do you understand what the credit bureaus are for? A credit bureau, also known as a Credit Reporting Agency or Consumer Reporting Agency, is pretty much a central database of credit and collection records, payment history, and particular legal details about you the consumer and businesses.
The credit bureau's business is to sell (note the word sell) your credit history to lenders, banks, landlords, and even employers so they can make a decision if they want to entrust you with their capital. Everyone knows the major U.S. credit bureaus Equifax, Experian, and TransUnion, but their are a couple others you need to know. The increasingly important new bureau is Innovis and we should not gloss over its significance to our scores. Dun and Bradstreet Corporation is also extremely important because it deals exclusively with business credit history.
The credit bureaus store hold 1 billion individual consumer and business records. About 2 billion individual credit transactions are entered into those records every month. That's a tremendous amount of data to manage correctly don't you think?
Most people don't know that roughly 80% of all credit reports have errors. Most of these errors go unnoticed. This is because mistakes may only get caught when you are declined for credit. However, most people just say "ok" to their score because of the psychological effect that the acceptance of a single mishap in your history can cause. We tell ourselves, "Yeah, I know it's bad cause of that late payment I had." And so we just accept it.
The US Government has recently established requirements for the bureaus to maintain accurate records along with requires them to have a way for consumers to see their records. It also established improvements for responding to consumer complaints.
Credit reporting bureaus are still businesses that exist to make profits like any other. Their profits are derived by charging banks, lenders, credit card companies or utility companies for accessing customer's history. This also means that looking into your disputes costs them resources, time, and money to investigate.
Let's take a look at the first big secret behind the credit bureaus:
Did you know you could potentially have up to 92 different credit scores? Each individual credit bureau, including Innovis, can issue up to 23 varying scores. The actual report you receive depends on who requests your history.
Your score will differ based on who pulls the score and which profile has been applied to you. Usually the score you get if you pull it from a major reporting bureau or an online service will absolutely be different - and usually higher than the score you get from a mortgage broker.
For instance, if you apply for your credit file through an online agency you'll be required to match up around 18 points of identification to confirm who you are. Unfortunately when a mortgage broker requests your report, they only need around 9 elements of identification to match which allows room for more errors and subsequently may reduce your score.
There are some allegations surrounding credit bureaus specifically giving lower credit scores than are actually true as their way of avoiding a potential law suit from a lender in the event that the borrower can't repay the loan.
This has scary implications as it suggests they may be protecting themselves instead of offering factual information.
The credit bureau's business is to sell (note the word sell) your credit history to lenders, banks, landlords, and even employers so they can make a decision if they want to entrust you with their capital. Everyone knows the major U.S. credit bureaus Equifax, Experian, and TransUnion, but their are a couple others you need to know. The increasingly important new bureau is Innovis and we should not gloss over its significance to our scores. Dun and Bradstreet Corporation is also extremely important because it deals exclusively with business credit history.
The credit bureaus store hold 1 billion individual consumer and business records. About 2 billion individual credit transactions are entered into those records every month. That's a tremendous amount of data to manage correctly don't you think?
Most people don't know that roughly 80% of all credit reports have errors. Most of these errors go unnoticed. This is because mistakes may only get caught when you are declined for credit. However, most people just say "ok" to their score because of the psychological effect that the acceptance of a single mishap in your history can cause. We tell ourselves, "Yeah, I know it's bad cause of that late payment I had." And so we just accept it.
The US Government has recently established requirements for the bureaus to maintain accurate records along with requires them to have a way for consumers to see their records. It also established improvements for responding to consumer complaints.
Credit reporting bureaus are still businesses that exist to make profits like any other. Their profits are derived by charging banks, lenders, credit card companies or utility companies for accessing customer's history. This also means that looking into your disputes costs them resources, time, and money to investigate.
Let's take a look at the first big secret behind the credit bureaus:
Did you know you could potentially have up to 92 different credit scores? Each individual credit bureau, including Innovis, can issue up to 23 varying scores. The actual report you receive depends on who requests your history.
Your score will differ based on who pulls the score and which profile has been applied to you. Usually the score you get if you pull it from a major reporting bureau or an online service will absolutely be different - and usually higher than the score you get from a mortgage broker.
For instance, if you apply for your credit file through an online agency you'll be required to match up around 18 points of identification to confirm who you are. Unfortunately when a mortgage broker requests your report, they only need around 9 elements of identification to match which allows room for more errors and subsequently may reduce your score.
There are some allegations surrounding credit bureaus specifically giving lower credit scores than are actually true as their way of avoiding a potential law suit from a lender in the event that the borrower can't repay the loan.
This has scary implications as it suggests they may be protecting themselves instead of offering factual information.
About the Author:
Home Buddies gives lectures on investor credit repair in Houston. Starting with their free session for site visitors, Home Buddies develops and implements a customized strategy to boost credit and creates a business development strategy to help investors or homeowners overcome problems to financing real estate and building their portfolio.
posted by Credit Counseling at
10:28 AM
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