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Credit Report Information the Lender Sees

Credit Report – 5 Hints Credit Bureaus Don't Want to Share

The probability of a lender acquiring and researching your credit history when you apply for a loan or credit is almost a guaranteed fact. Regardless of how well you present yourself, that is their way of determining whether or not to grant you a loan or credit card.

Your credit report is a testimony of your credit history, prepared by agencies called "Credit Bureaus" or "Consumer Reporting Agencies”. Experian, EquiFax, and Trans Union are private organizations which have no attachments with the United States (or any) government.

By selling copies of credit reports, these organizations normally generate billions of dollars annually to creditors, which creditors normally use for mailing list.

Your financial life is not the only thing affected by your credit report. It may perhaps affect your education, career, your timing and/or choice of auto and home your want to purchase. Even more it affects the interest rate for the loans and credit cards you apply for.

Your credit report plays a vital role in many areas of your life. The better your credit report the more you save in interest rates on loans and credit cards. It can save you thousands of dollars in the end, especially in emergency situations.

You should never allow credit bureaus to intimidate or scare you when it comes to your financial and personal life. The only authority they have is to prepare and distribute your credit report at the request of lenders and creditors. Make no mistake the have a great influence on the decisions the lenders make, so please do not think there is nothing you can do to straighten out your bad credit.

Knowing that positive thinking is the key to success here are some facts credit bureaus would pretty much like to keep in the closet:

Credit reports are commonly filled with errors –

Errors in your credit report is a story that can be told by thousands of consumers. Some say 3 out of every 10 people have a horror story to share. If you research you will find in many surveys and experts say that at more the half of credit reports contain errors. Look that information below on the percentage of credit reports with errors and/or mistakes.

Credit Reports That Contain Mistakes

Attorney General of NY 1/3
Consumers Union 48%
US Congress 1/2
Charles Givens Organization 90%

The above information shows that no matter your tax bracket everyone is subject to credit report mistakes and errors. It should also encourage you to obtain a copy of your report and examine it carefully.

The law is on your side

Congress passed the Fair Credit Reporting Act (FCRA), a governing federal law in the processing credit reporting, in 1972 to help control and limit abuse by the credit bureaus.

With the FCRA, your right to dispute negative reported information on your credit report is easier then you think. Disputed information with the creditor must be verified within 30 days, if not it must be deleted from your credit report.

The key thing is if information is not verified regardless of being accurate or not it must be deleted.

Upon research credit repair you will find a familiar statement "Negative data in your credit report that is accurate cannot be removed”, but according to stipulations in the FCRA information must be verified within 30 days, or it must be deleted. The "burden of proof" (in a manner of speaking), is on the credit bureaus.

Credit repair works in most cases -

With so many of opinions about the chance of "credit repair" being successful, the fact is, credit repair doesn't always have the result you want. There is hope in most cases improvement in your credit score is highly possible, and most of the time is substantial.

Since the credit bureaus make money compiling and distributing, despite the consequences of good or bad reporting, wondering if repairing your credit score would worry to the credit bureaus is not an issue.

It may be an issue; however the bottom line is they are still making a great deal of selling information of those with poor credit to specific interest parties. Creditors know they can charge higher interest rates to those with bad credit.

Having nothing to gain by people disputing their credit reports, the credit bureaus stand to lose time, manpower and money. They lose plenty when people take initiative to investigate and dispute negative information on their credit report.

It's completely legal to hire a third party help to repair your credit -

With so many Credit Repair Agencies competing for the opportunity to repair your credit, credit bureaus try to discourage you from using them. If and when they suspect credit report agencies are involved they can go so far as to contacting you to say using such agencies is illegal.

These statements are untrue. There are laws that regulate such agencies and they must be adhered to. Now laws don't exist to regulate illegal activity, except to prohibit it.

So once more, repairing your bad credit report is not only in your best interest of the credit bureaus but raises the important questions of your own best interest.

Remember to take advantage of obtaining a copy of your credit report. A free copy of your report can be obtained through http://www.annualcreditreport.com. Take the first step to improving your credit and removing the errors now. These can be done in a couple of ways. Two ways are hiring third party help or repairing your own credit.

Third party help -

If repairing your own credit report sounds too nerve-racking. Try a credit repair agency, with so many credit repair agencies readily available, you should know that before you take this approach keep these three things in mind.

For one they are not cheap, most start at $800 for an agency to $2,500 for an attorney. Secondly, the outcome may not be favorable to you as they make mistakes as well. While managing to remove negative data from your credit report, they can actually damage your credit score. Your credit score is the number used by creditors to determine your credit worthiness. Third it has been proved that most are down right scams!

Not saying not to hire third party help, but in the event your do. Research the agency, request references when seeking to select a reputable credit repair agency. This will save you time and money or try a much another alternative method.

Repair you own credit report.

Even you can fix your own credit report. It takes time and preparation to write some letters, addressing envelopes and mailing them you can help repair your own credit. There are books and information available that can literally walk you though the entire process. You will be surprised how easy it actually is.

Sleepless nights and lots of money are some of the major issues for people with bad credit. Fixing your credit could save thousands in interest payments over the years for anyone with bad, poor, fair and excellent credit.

Get started on fixing your credit report right now! Know your facts and remember the law is on your side when communicating with the credit bureaus.

Copyright Rebecca Hubbard All Rights reserved

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