Do you understand what the credit bureaus are for? A credit bureau, also known as a Credit Reporting Agency or Consumer Reporting Agency, is basically a central database of collection and credit records, payment history, and specific legal data about consumers and businesses.
These records are sold (emphasis on sold) to lenders when a consumer or business applies for credit. The three most widely recognized American bureaus are Equifax, Experian and TransUnion. Even Dun and Bradstreet is considered a credit bureau that is known for reporting business credit information exclusively. And do not forget about the up-and-coming Innovis.
Do you think you or your business would likely make a mistake if you were to track over a billion records and two billion transactions every month? Of course you would simply because no one is that perfect.
Most of us don't know that around 80% of all credit reports have errors. Most of these errors go unnoticed. This is because mistakes may only get caught if you get declined for credit. However, most people just say "ok" to their score because of the psychological effect that the acceptance of one mistake 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 United States Government has recently established obligations for the bureaus to maintain accurate records along with requires them to have a way for consumers to see their records. It also made improvements for responding to consumer complaints.
The credit bureaus do not make their money by researching your disputes. Researching your disputes costs them resources, money, and time to investigate them. Remember, they make almost all of their money by selling information to lenders, insurance companies, utility companies, credit card issuing banks, and even employers.
Let's look at the first big secret behind the credit bureaus:
Did you know you could potentially have up to 92 different credit scores? Each different credit bureau, including Innovis, may issue as many as 23 varying scores. The actual report you get depends on who requests your report.
The reason for this discrepancy is that you will have slightly different profiles depending on whomever ordered your file information. That means you could end up with a vastly different score from an online service than you would if you got your score from a mortgage broker.
Essentially, if you order a report from an internet credit agency, they are required to sync up approximately 18 points of identification to verify your identity. However, banks and lenders only need about 9 points of identification. So, due to the lower number of identification points, the odds that mistakes will appear goes up.
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. - 15224
These records are sold (emphasis on sold) to lenders when a consumer or business applies for credit. The three most widely recognized American bureaus are Equifax, Experian and TransUnion. Even Dun and Bradstreet is considered a credit bureau that is known for reporting business credit information exclusively. And do not forget about the up-and-coming Innovis.
Do you think you or your business would likely make a mistake if you were to track over a billion records and two billion transactions every month? Of course you would simply because no one is that perfect.
Most of us don't know that around 80% of all credit reports have errors. Most of these errors go unnoticed. This is because mistakes may only get caught if you get declined for credit. However, most people just say "ok" to their score because of the psychological effect that the acceptance of one mistake 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 United States Government has recently established obligations for the bureaus to maintain accurate records along with requires them to have a way for consumers to see their records. It also made improvements for responding to consumer complaints.
The credit bureaus do not make their money by researching your disputes. Researching your disputes costs them resources, money, and time to investigate them. Remember, they make almost all of their money by selling information to lenders, insurance companies, utility companies, credit card issuing banks, and even employers.
Let's look at the first big secret behind the credit bureaus:
Did you know you could potentially have up to 92 different credit scores? Each different credit bureau, including Innovis, may issue as many as 23 varying scores. The actual report you get depends on who requests your report.
The reason for this discrepancy is that you will have slightly different profiles depending on whomever ordered your file information. That means you could end up with a vastly different score from an online service than you would if you got your score from a mortgage broker.
Essentially, if you order a report from an internet credit agency, they are required to sync up approximately 18 points of identification to verify your identity. However, banks and lenders only need about 9 points of identification. So, due to the lower number of identification points, the odds that mistakes will appear goes up.
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. - 15224
About the Author:
Home Buddies gives seminars on investor credit repair in Houston. Starting with a free session for online 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 a portfolio.
