Credit bureaus are companies that collect and maintain consumer credit information. They then resell it to other businesses in a consumer's credit report. There are three major credit agencies in the United States: Equifax, Experian, and TransUnion. When creditors and lenders check your credit, it will likely be through one of these three. These agencies retain information on more than 200 million Americans.
Credit bureaus create credit reports through information provided by lenders. They then sell this information to their clients when a consumer applies for credit. However, they do not determine your credit score. The Fair Isaac Corporation (FICO) calculates your credit score based on information is your credit report and is used by 90% of lenders to determine your credit worthiness.
Credit reporting process involves two parties – the credit buraus and businesses who pay the credit bureaus for consumer credit reports when they need them to determine the financial risks they will be taking in giving the consumer credit. The main job of the credit bureaus is to meet the needs of their paying customers, not consumers.
The problem for consumers in this scenario is that they have little to no say in these activities. Since they don’t make money for the credit bureaus, they are left out of the process. Yet, human errors made on their credit reports can have costly financial ramifications. The only defense you have is to actively work to keep your credit report clean.
The credit reporting agencies do not like credit repair at all! It makes their job harder (they make no profit from it) and it makes them look bad to their subscribers. A person with “bad credit” has 70% more inquiries on their file than a person with “good credit”; think about that for a minute, every time a credit file is pulled the CRAs make money (in between three and five dollars each)! CRA’s are a publicly traded company. Making money is their objective. So, do they want you to fix your credit, absolutely not! Therefore, do not be surprised if you get some “junk mail” warning you about “credit repair agencies”, it is mailed out randomly so you may not get any at all.
The CRA’s may send you a letter requesting you to notify them of our company. Please disregard their attempts to discredit our business, you can feel safe doing business with us! Remember, the CRA’s are NOT government agencies; they are for-profit multi-million-dollar companies that collect and sell your personal information! AND if they find out that you are working with a credit repair company, they will ignore any requests that we put in and make it VERY difficult to help your credit situation.
First create a credit repair folder and add a calendar to this folder. Mark on your calendar the date you started. Go forward in your calendar 36 days, mark that day as the date to expect updated reports in the mail. These reports will arrive in plain, white, nondescript envelopes.
(*If you do not receive any notification within this time period, it is your responsibility to let us know so we can take appropriate action. Not doing this will jeopardize the success of this program.)
Our proven process requires that we have a specific type of credit report to determine the chances of removal for each item. This is included with your required credit monitoring service, which has a fee of $29.95 per month. Click here to sign up for this service.
As you receive your updated reports make a copy and place it in your folder. Make sure to upload each report via your secure portal.
Sometimes they also send “Anti-Credit Repair” letters, please do not worry about these letters. Remember they do not want you to repair your credit, it is going to cost them time and money and then they will ultimately lose money!
Please keep of all the letters you receive from the three CRAs referring to when updated reports would arrive, and we may need these items at a later date. If you get any kind of letter from the CRA”S, make a clear copy and use the My Documents page to up load copies (.jpgs) of the letters.
Approximately two to three weeks after we receive your credit files. You will receive a “thank you” letter from each Credit Reporting Agency. Note: not everyone will receive this. However, this is an indication that the process is underway. ABCR staff will also work closely with you, updating you throughout the process.
IF you get a letter requesting information please contact us as soon as possible.
No! Don’t close old credit accounts. Older, established accounts are a big part of your credit score. These are part of your positive credit criteria, which takes years to build. You can always choose not to use them but keep them open. Ideally, you should use no more than 25% of your credit line.
You and your spouse have separate credit files, but if you apply for together for credit there are potential risks and rewards. You will both benefit from the loan if paid on time. However, a default will negative affect both of you.
Your credit score will likely receive either positive or negative information when cosigning on a loan. If the other party pays the loan on time, your credit will be affected positively. If the other party issues payments or defaults on the loan, your credit will be affected negatively. You need to consider why the other person needs a cosigner. Is it because they don’t yet have any credit history, or is it that they have poor credit? You need to weight the risk carefully before deciding to cosign on a loan with another party.