They Will End Up Making More Money When They Are Able To Approve You!

When you don’t have any say in what happens with your credit report and the information contained in it, you are at the mercy of the credit bureaus and lenders, which is not a good place to be because they ultimately are only concerned with their profits and you are not able to get the items you need on credit.

They could care less how bad your credit rating repair is, or if there are errors, misleading, incomplete or unverifiable negatives on your report. The more of these items appear on reports, the more money they can make from higher interest rates when you do find someone that will approve you.

It is estimated that roughly 79% of credit reports contain errors. This is costing consumers millions of dollars per year from higher interest rates as a result of these errors, and that’s not including negative accounts that should NOT be on credit reports according to the law.

At the end of the day it puts more profits in the pockets of the credit bureaus biggest customers… the lenders!
Herschel

Credit is a tricky subject because we don’t have the secret key that unlocks the proprietary information or formula of the credit bureaus and Fair Isaac Corporation. They created the scoring modules that are in use today to create credit scores on the information in your credit file. However, through exhaustive research and intensive study, we have come to see the secrets and tricks the credit bureaus use and understand how it works… almost.

Because there are hundreds of factors involved in creating a scoring module and how it affects the information in your credit file, it is difficult to ascribe a perfect number of points to what a tip or strategy will do to increase or decrease your credit score. However, this much we absolutely do know… that if you do follow the tips and strategies in this book then you will see a rise or fall in credit points depending on if the action is a good action or a bad action on your part.

Take heed to read the tips and strategies and relate them to your own credit file and the information contained in it. Read it, get to know it and then read the strategies to use to get your scores going up instead of down. This will help you get the highest scores possible and create an opportunity for a great financial future . Now, go and get start and remember, that Every Point Counts!

There are 5 areas of importance in the scoring modules of the credit bureaus.

They are:

1 – Bill payment history – 35% of your score is attributed to this section.

2 – Account Balances – 30% of your score is attributed to this section.

3 – Length of time opened – 15% of your score is attributed to this section.

4 – New Accounts – 10% of your score is attributed to this section.

5 – Types of credit used – 10% of your score is attributed to this section.

Terms:

Creditor = the company that extended the credit to you.

Payee = the company that you make the payments to.

Payer = this is you, the person that makes the payment to the company (Payee) that you owe.

A mistake on your credit report can cost you literally thousands of dollars, especially in this economy. So what can you expect from a big credit bureau if you ask them to investigate and correct the error?

What a great question and one that Spence Wharton, an NCF consultant shot me recently. Smart Money magazine did an article and one that I thought merits your attention. Just click the link below?

http://www.smartmoney.com/Spending/Rip-offs/Why-The-Credit-Bureaus-Cannot-Get-it-Right/

People ask me all the time how can they, the credit bureaus, do this or that? Why would they not delete this right away? How can they get away with this?

You’ll read about when testifying before Congress, one CEO of an independent Arizona credit bureau likened the dispute process to “having an IRS audit, brain surgery, getting a tooth pulled or going to your own funeral.

So, take a few moments with a hot cup of coffee or perhaps over lunch today and find out some facts on how the credit bureaus basically snub their noses at the average Joe consumer. How they abuse folks just like you and I.

This is just a taste of the battles we fight every day for our members!

Be Bold!

Herschel

A debt threshold is where the report to credit bureaus can hurt or help your credit scores.  When talking about your debt-to-credit limit ratio, there are certain points that can hurt or help your scores depending upon whether you are increasing your debt or decreasing your debt.  One example we teach is that you should never go over 45.91% debt to credit limit on revolving loans or you will lose a significant amount of credit score.  Any time you go below a threshold, you will be gaining significant points and anytime you go up over a threshold you will be losing significant points.  Here are the other thresholds that are important to watch as you are reducing  debt, knowing your credit scores are increasing.  88.78% – 68.72% – 45.91% – 33.37% – 23.69% and 15.89%.

The trick is to stay below 15.89% on all your revolving accounts and keep your credit scores high.