Home Buddies on the Credit Bureau Secrets We All Should Know
If someone asked you "What exactly is a credit bureau?" would you know? Obviously these credit bureaus have a lot of mystery surrounding them. The point of credit bureaus is simply to store payment history, credit and collection records, and particular legal details about consumers and businesses.
The Bureaus sell (that's right, sell) your credit information to bankers whenever a business or consumer tries to apply for credit. Experian, Equifax, and TransUnion are the most widely recognized United States credit bureaus. Business credit records is the specialty for the less widely recognized Dun and Bradstreet. The increasingly important credit bureau (isn't it exciting...) is Innovis.
You can't expect to be perfect each time if you are tracking billions of individual transactions every month. The credit bureaus are no different. So it is up to us to keep a careful eye on the job they are doing with your credit history.
Many people don't know that around 80% of all credit reports have errors. Most of these mistakes go unnoticed. That is because mistakes may only get found when you are declined for credit. However, a lot of people just say "ok" to their score because of the psychological effect that the acceptance of a single mishap in your past can make. We tell ourselves, "Yeah, I know it's bad cause of that late payment I had." And so we just accept it.
The U.S. Government has recently established obligations for the bureaus to maintain accurate records along with requires them to provide a way for consumers to view their records. It also laid out improvements for responding to consumer complaints.
Credit reporting agencies generate their profits by charging a fee to banks, lenders, credit card companies and online agencies for pulling your credit report. They actually don't make any money at all for allocating a staff member to investigate complaints or disputes into any errors found in your personal records.
Let's look at the first major secret behind the credit bureaus:
Depending on who requests your credit information, your score could have up to 92 individual variations. This means each of the bureaus could have potentially 23 independent scores outside of your actual real score.
The score you receive will vary depending on whether a major reporting bureau ordered it or whether an online company requested it. It also depends on which profile has been applied to you during that particular request.
When you request a report from an online service for example, there are typically around 18 variables for identification that have to match exactly. You are more likely to get accurate information if a high percentage of information syncs up. When the credit bureaus pull a report for a lender, only about 9 elements need to sync. So, more errors and erroneous information will appear on your score which can drop your score.
It has been speculated that the credit bureaus provide these different and lower scores because if they are reporting lower scores to lenders, then they feel that they would be less likely to be sued by lenders if the borrower defaults on the loan.
This has scary implications as it suggests they may be protecting themselves instead of offering factual information.
The Bureaus sell (that's right, sell) your credit information to bankers whenever a business or consumer tries to apply for credit. Experian, Equifax, and TransUnion are the most widely recognized United States credit bureaus. Business credit records is the specialty for the less widely recognized Dun and Bradstreet. The increasingly important credit bureau (isn't it exciting...) is Innovis.
You can't expect to be perfect each time if you are tracking billions of individual transactions every month. The credit bureaus are no different. So it is up to us to keep a careful eye on the job they are doing with your credit history.
Many people don't know that around 80% of all credit reports have errors. Most of these mistakes go unnoticed. That is because mistakes may only get found when you are declined for credit. However, a lot of people just say "ok" to their score because of the psychological effect that the acceptance of a single mishap in your past can make. We tell ourselves, "Yeah, I know it's bad cause of that late payment I had." And so we just accept it.
The U.S. Government has recently established obligations for the bureaus to maintain accurate records along with requires them to provide a way for consumers to view their records. It also laid out improvements for responding to consumer complaints.
Credit reporting agencies generate their profits by charging a fee to banks, lenders, credit card companies and online agencies for pulling your credit report. They actually don't make any money at all for allocating a staff member to investigate complaints or disputes into any errors found in your personal records.
Let's look at the first major secret behind the credit bureaus:
Depending on who requests your credit information, your score could have up to 92 individual variations. This means each of the bureaus could have potentially 23 independent scores outside of your actual real score.
The score you receive will vary depending on whether a major reporting bureau ordered it or whether an online company requested it. It also depends on which profile has been applied to you during that particular request.
When you request a report from an online service for example, there are typically around 18 variables for identification that have to match exactly. You are more likely to get accurate information if a high percentage of information syncs up. When the credit bureaus pull a report for a lender, only about 9 elements need to sync. So, more errors and erroneous information will appear on your score which can drop your score.
It has been speculated that the credit bureaus provide these different and lower scores because if they are reporting lower scores to lenders, then they feel that they would be less likely to be sued by lenders if the borrower defaults on 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 speaking events on real estate investor credit repair in Houston. Beginning with their free session for site visitors, Home Buddies develops and implements a custom strategy to boost credit and creates a business development strategy to help real estate investors or homeowners overcome problems to financing real estate and growing their portfolio.
posted by Debt Consolidation Loan at
2:23 PM
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