The Credit Bureaus exist for one reason, and one reason only...to make money! Each and every one of the bureaus is a publicly traded company. They make most of their revenue by selling information to lending institutions, insurance companies, utility companies, credit card issuing banks, and employers.
They DO NOT make money by researching your disputes...in fact, it costs them time, money, and resources to investigate them. Is it any wonder then who the bureaus ultimately serve?
Bureau Secret #1 Credit Bureau Reports - Your 92 Scores
Reports and scores are created "on the fly" whenever they are requested by you, a creditor, or a lender. In fact, you can have up to 92 different scores...23 different scores for each Bureau: Trans Union, Experian, Equifax and don't forget the little known "other" bureau named Innovis.
Remember your credit scores can vary drastically depending on who pulls the report and the particular profile applied to you. This Bureau process is especially problematic if you are thinking of getting a home loan or mortgage. The score you see if you request it from a major reporting bureau or an on-line service WILL be different - and probably much higher than the score you receive from a Mortgage Broker.
Why?
One reason is that when you pull a report from an online service 18 elements of identification have to match exactly. For example, all of the letters of your last name need to match. That means you are more likely to get accurate information.
When the bureaus pull reports for lenders, usually only 9 elements have to match, for example only 2 letters in your last name. So, more errors and erroneous information will appear on your score - lowering it. Why do the Bureaus provide different - and LOWER - scores to lenders?
Because they've decided that by reporting lower - more conservative scores to lenders, they would be less likely to be sued by lenders if the borrower defaults on the loan.
Do you think the major reporting bureaus care about showing lenders your true credit worthiness? I am here to tell you that they don't! Matter of fact, if you would like to find out more information about how the bureaus are royally screwing over the American Consumer, I have created a newsletter that details shocking news about the 3 Major Bureaus
Bureau Secret #2 Credit Bureau Reports - Your Scores are NOT Accurate
Did you know that your score is probably inaccurate? According to a recent Public Interest Group Research study, more than 70% of Reports contain errors. Oh sure, the Bureaus say to the public that only 20% of reports contain errors, but that's a bunch of Bureau bologna, because when they are in court under oath they admit that more than 50% of reports contain errors.
What kind of errors are probably on your report - and making you pay more for your home, auto loan, insurance, credit cards and student loans? The study found that 29% of reports contain serious errors that don't belong including; false delinquencies that can kill your score.
41% of reports contain personal demographic information that was incorrect, outdated, or misspelled.
20% of credit reports - 1 in 5!!!! were missing major loan mortgage or other information to demonstrate the worthiness of the consumer.
26% of reports contained accounts that were in incorrectly listed as open (or) "closed by credit grantor." When your account is "closed by grantor" it looks like you did something wrong and that's bad for your scores.
Bureau Secret #3 What Is Your Real, Accurate, and True FICO Score?
Did you know that over 90% of the financial institutions in the world will use scores from one organization only? The name of that company is Fair Isaac Corporation or as they are more commonly known FICO.
The location where I recommend that you purchase your credit scores from is from the Fair Isaac Corporation at their main website. Now, I recommend going to a certain section of their website where you will get a true picture of why your scores are behaving the way they are
This website will not only give you the most current status of your reports, but it will also show you your FICO Scores from all 3 bureaus.
This is the only place you should ever get your scores, because your FICO scores are the ones from where most lenders will base their acceptance of your credit application.
I find it interesting that the major bureaus also have their own version of scores that they try to sell to you and I. However none of the people you are trying to get to extend you a loan will even look at those scores! It is just another example of the greedy bureaus trying to squeeze more and more money from us.
Let's Wrap This Up...
So as you can see, there are many myths disguised as truths when it comes to credit and credit repair. There are also hidden secrets that the credit bureaus don't want you to know. I hope that since you are now armed with this knowledge, you won't fall victim to false information that exists out there.
Your Credit Score Insider, Mark J. Garcia
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