The Credit Bureaus exist for one reason, and one reason only…to make money! Each and every one of the credit bureaus is is a publicy traded company. They make most of their revenue by selling information (i.e. credit reports) to lending institutions, insurance companies, utility companies, credit card issuing banks, and employers.

   They DO NOT make money by researching your credit disputes…in fact, it costs them time, money, and resources to investigate them. Is it any wonder then who the credit bureaus ultimately serve?

Credit Bureau Secret #1

Credit Bureau Reports – Your 92 Credit Scores

   Credit 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 credit scores…23 different credit scores for each Bureau: Transunion, Experian, Equifax and don’t forget the little known “other” credit bureau named Innovis.

   Remember your credit scores can vary drastically  depending on who pulls the report and the particular credit profile applied to you.

   This Credit Bureau process is especially problematic if you are thinking of getting a home loan or mortgage. The credit score you see if you request it from a Credit Bureau or an on-line service WILL be different – and probably much higher than the credit 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 credit 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 Credit Bureaus provide different – and LOWER – scores to lenders? Because they’ve decided that by reporting lower – more conservative credit scores to lenders, they would be less likely to be sued by lenders if the borrower defaults on the loan.

   Do you think the Credit  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 credit bureaus are royally screwing over the American Consumer, click the link below to find out more shocking secrets the credit bureaus keep from you and I…

 http://www.crushingthecreditbureaus.com/

 

Credit Bureau Secret #2

Credit Bureau Reports – Your Scores are NOT Accurate

   Did you know that your credit score is probably inaccurate?

   According to a recent Public Interest Group Research study, more than 70% of Credit Reports contain errors. Oh sure the Credit Bureaus say to the public that only 20% of credit reports contain errors, but that’s a bunch of Credit Bureau bologna, because when they are in court under oath they admit that more than 50% of credit reports contain errors.

   What kind of errors are probably on your credit report – and making you pay more for your home, auto loan, insurance, credit cards and student loans?

The study found that:

- 29% of credit report accounts contain serious errors that don’t belong including false delinquencies that can kill your credit score.

- 41% of credit reports contain personal demographic information that was incorrect, outdated, or misspelled.

- 20% of credit reports – 1 in 5!!!! were missing major credit loan mortgage or other information to demonstrate the credit worthiness of the consumer.

- 26% of credit 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 credit score.

 

Credit Bureau Secret #3

What Is Your Real, Accurate, and  True Credit Score?

   Did you know that over 90% of the financial institutions in the world will use credit scores from one organization only? The name of that company is Fair Isaac Corporation or as they are more commonly known FICO and FICO Credit Scores.

   The location where I recommend that you purchase your credit scores from is from the Fair Isaac Corporation at their website www.myfico.com/12

   This website will not only give you the most current status of your credit reports, but it will also show you your FICO Credit scores from all 3 credit bureaus. This is the only place you should ever get your credit 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 credit bureaus also have their own version of credit scores that they try to sell to you and I.  However  none of the people you are trying to get to extend you credit will even look at those credit scores!

It is just another example of the greedy credit 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.

   Inside there are over 150 pages of credit repair tips, techniques, and tactics to skyrocket your credit scores.

   Click the link to download Crushing The Credit Bureaus for only $97

Speak to you soon,

Your Credit Score Insider,

Mark J. Garcia

   I wanted to share with my readers some insight a couple of colleagues shared with me over the weekend when I was speaking at a Private Money Investment Seminar for Real Estate Investors In Atlanta.

   One of the topics that came up was how these real estate investors could help some of their clients or customers that they are working with on real estate transactions. Some were other investors who needed high scores to qualify for loans, others were investors who needed to sell a property and they wanted their buyers to fix their bad credit.

   Every time you turn on the TV or open the newspaper, you see stories of people who are suffering from the financial effects of bad credit.  They are in over their heads with credit card debt, and may be at risk of losing their homes to foreclosure.  I mentioned to the attendees of my workshop presentation that “Hey, you know a little something about credit repair – you will able to raise your own credit score recently.  You are the perfect candidate to help other people solve their credit problems.  You can become a credit restoration specialist.”

 In this article I wanted to give y’all some tips for preparing for this fast growing field.

Tip #1:  Get smart.  

   Gather all of the information you will need to be successful.  Invest in manuals or other educational materials that provide you with proven tips and techniques for helping others with their credit problems. My book Crushing The Credit Bureaus would be a good start.

Some publishers offer home study courses, eBooks, and even audio CDs that will help you build the knowledge base you will need.

Tip #2: Stay legal.  

   This past week there were over 30 Credit Repair Companies that were shut down by the FTC. Most of them I had never heard of, but some of them were household names in the credit repair world. There are an increasing number of laws and regulations being enacted to protect consumers in financial trouble.  

   You need to be aware of them all.  And remember that some of the legal information will be specific to your state.  You may even have to be licensed or certified to practice in your area.  You will want to share legal disclosures and disclaimers with your clients; this protects you from legal risk while informing your client of what you can and cannot do legally.

Tip #3:  Be reputable.

   Consumers in trouble will be wary of those offering to help – they may have been burned by a shady credit repair company in the past.  It’s up to you to deal with your clients honestly, and with integrity. Joining a better business bureau or other professional organization in your area will help add to your credibility.
Tip #4:  Loose Lips, Sink Ships.  

   Your clients will be entrusting you with private, personal financial information.  You must respect the confidentiality of the information you are given.  A sure way to ruin your career in credit restoration is by violating that trust by sharing that information with others.

Tip #5:  Select a method.  

   You can provide your credit restoration services on a private, one-to-one basis, or by holding credit counseling classes for a group of clients.  You might offer a free seminar, where you describe what you can do to improve your client’s credit and raise their credit scores.  Use the seminar to build your base of paying clients.

Tip #6:  Stay current.  

   Lawmakers are finally taking action to help solve the average American’s credit problems.  You need to find a resource that provides you with frequently updated information about today’s laws, regulations, and techniques related to repairing credit.

   The success of your credit restoration business will depend on your ability empathize with your clients, negotiate with their lenders, and carefully document all your efforts.  Credit repair is an art, not a science.  You won’t be able to help 100% of your clients.  But if you are realistic in your goals and apply yourself diligently, your clients (and your bank account) will thank you.

Stay Tuned,

Your Credit Score Insider,

Mark