Home Buddies on the Credit Bureau Secrets We All Should Know
There are many names tossed around these days for institutions that keep track of your financial life. If you have ever been informed that a Credit Reporting Agency or even a Consumer Reporting Agency has received data on you, they are talking about nothing more than one of the Credit Bureaus.
The Bureaus sell (yes, sell) your information to creditors whenever a business or consumer applies for credit. Experian, Equifax, and TransUnion are the major United States credit bureaus. Business credit information is the specialty for the less recognized Dun and Bradstreet Corp. The increasingly important credit bureau (isn't it exciting...) is Innovis.
The credit bureaus store over a billion individual consumer and business records. About 2 billion individual credit transactions are entered into those records each month. That's a lot of information to manage correctly don't you think?
Most credit report mistakes go unnoticed, but most people don't realize that roughly 80% of credit reports contain errors so they don't think to question it. Think about it, does McDonald's get every order right?
The Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act of 2003 (FACTA) now set out the obligations for credit bureaus to maintain fair and accurate records which is a big improvement. The Act tells the Bureaus how to respond to consumer complaints of inaccuracies and requires them to provide a way for consumers to view their records.
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 data. This also means that researching your disputes costs them time, money, and resources to investigate.
Here is the first secret of the credit bureaus:
Did you know you could potentially have up to 92 different credit scores? Each independent credit bureau, including Innovis, can issue as many as 23 varying scores. The actual score you receive depends on who requests your data.
Your credit score will vary depending on who requests the it and which profile has been applied to you. Typically the score you get if you request it from a major reporting bureau or an online service absolutely will be different - and usually higher than the score you would get from a mortgage broker.
Essentially, if you order your own report from an internet credit agency, they are required to match approximately 18 points of identification to confirm your identity. However, banks and lenders only need around 9 points of identification. So, due to the lower number of identification points, the chances that errors will appear is increased.
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.
Wow. So are they protecting you? Or just protecting themselves?
The Bureaus sell (yes, sell) your information to creditors whenever a business or consumer applies for credit. Experian, Equifax, and TransUnion are the major United States credit bureaus. Business credit information is the specialty for the less recognized Dun and Bradstreet Corp. The increasingly important credit bureau (isn't it exciting...) is Innovis.
The credit bureaus store over a billion individual consumer and business records. About 2 billion individual credit transactions are entered into those records each month. That's a lot of information to manage correctly don't you think?
Most credit report mistakes go unnoticed, but most people don't realize that roughly 80% of credit reports contain errors so they don't think to question it. Think about it, does McDonald's get every order right?
The Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act of 2003 (FACTA) now set out the obligations for credit bureaus to maintain fair and accurate records which is a big improvement. The Act tells the Bureaus how to respond to consumer complaints of inaccuracies and requires them to provide a way for consumers to view their records.
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 data. This also means that researching your disputes costs them time, money, and resources to investigate.
Here is the first secret of the credit bureaus:
Did you know you could potentially have up to 92 different credit scores? Each independent credit bureau, including Innovis, can issue as many as 23 varying scores. The actual score you receive depends on who requests your data.
Your credit score will vary depending on who requests the it and which profile has been applied to you. Typically the score you get if you request it from a major reporting bureau or an online service absolutely will be different - and usually higher than the score you would get from a mortgage broker.
Essentially, if you order your own report from an internet credit agency, they are required to match approximately 18 points of identification to confirm your identity. However, banks and lenders only need around 9 points of identification. So, due to the lower number of identification points, the chances that errors will appear is increased.
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.
Wow. So are they protecting you? Or just protecting themselves?
About the Author:
Home Buddies gives lectures on real estate investor credit repair in Houston. Starting with their free session for site visitors, Home Buddies develops and implements a customized strategy to restore 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
4:13 AM
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