Reporting Agencies and Your Credit Score – Credit Repair Austin TX

Why the Credit Reporting Agencies Aren’t Interested in You Having Great Credit.

The “Big 3” Credit bureaus, or credit reporting agencies as they are now called, are TransUnion, Equifax, and Experian. These are private, for profit companies who make money by selling consumer information. Your credit profile is made up of data collected by your existing and past creditors which they report to the credit bureaus on a regular basis. The bureaus make a profit by selling this information in reports, leads, and other methods to creditors who use it to either issue additional credit or solicit you for new credit (and are definitely not interested in improving your credit score or in credit repair).

For example, when a creditor such as CHASE wants to offer new credit, they purchase a data list from the credit bureaus. This list might consist of consumers with credit scores from 550-620. The bureaus then profit by selling that list to CHASE, and CHASE will use the list to send mailers soliciting you to apply for their credit card. In the data selling world, sub-prime credit is always more valuable. Simply put, a creditor will pay more for a list of consumers who are 30 days late on their mortgage than a consumer with a perfect pay history. Why? It’s all about supply and demand–people with poor credit are willing to pay more for additional credit.

Very few companies want the perfect pay history consumers, so this data has a low value. But there are a significant number of sub-prime companies who will pay top dollar for data on poorer credit risk individuals. Sub-prime credit card companies, auto and home loan, credit repair, loan modification, short sale companies, and even debt consolidation are just a few of the kinds of companies who pay big money for these types of leads.

Companies also pay more for “triggers” or “selects” for consumer leads. This means they pay more for bankruptcy leads, high credit card balances, late payments on credit cards, accounts in COLLECTIONS status, 30-90 day late payments, foreclosures, and even late payments on mortgages.

CHASE won’t pay much for a list of good credit customers. In comparison, a bankruptcy company will pay a lot more for a list of consumers who filed bankruptcy within the last 30 days. That list is much more specific and would cost about TWICE as much from the credit reporting agencies. The credit bureaus actually make MORE money the worse your credit is.
This is NOT an opinion, but a clear FACT. As you should now be able to see, it is simply NOT in the credit bureaus’ best interest to help ensure your credit report is accurate. Actually, the credit reporting agencies make more money if your credit is bad. The only reason they allow you to dispute accounts on your report is that they are obligated by law to do so.

(TBD) Credit Solutions provides state-of-the-art credit monitoring to identify problematic areas within your consumer credit reports. With our professional credit repair services, we can address your credit problems through filing dispute letters with the credit reporting agencies and creditors to assert your rights under the federal FCRA (Fair Credit Reporting Act). We have certified paralegals on staff to handle this process.

About the Author

Joseph Horton is currently the President, CEO, and Chief Paralegal at MyCreditRepairSpecialists.com headquartered in Austin Texas. He specializes in helping consumers establish excellent credit scores and then leverage those scores to access credit and better financial tools to improve their lives and financial futures. Given the scope of Mr. Horton’s legal experience and tenacious advocacy for his clients, he is able to utilize and assert the Federal Fair Credit Reporting Act to remove inaccurate, untimely and unverifiable information from consumer credit reports. Mr. Horton is also the mastermind behind the release of the Netflix and Build credit improvement strategy. For more information on consumer credit scoring, consumer credit, and credit repair, please visit www.MyCreditRepairSpecialists.com