In today’s market place there are three major credit bureaus: Equifax, Experian and Transunion.  You’ll also find many smaller agencies that act as “affiliates” of one of the big 3 like CSC and CBCInnovis or others that service their local geographic area but have less than complete national coverage.

There are other companies like ChoiceData that act as sales agents that sell credit data that is supplied by one of the big three credit bureaus.  In addition, many companies like Credco and Kroll actually a whole army of these type companies act as a “broker” buying and selling your credit data.  Finally, other companies are consumer reporting companies as defined by federal law but let’s not confuse these with CREDIT reporting agencies.  Companies like LexisNexis and Intelius are in this category.

Now this can become quite confusing and quite frankly seem like a pretty crowded market place but follow me on this point…

How cool would it be to have six or ten nationally recognized credit reporting agencies?

Some of you might be thinking that’s a pretty sick thought! But hold on stay with me on this.  We can wish they’d just quit reporting and go away but since that’s not likely to happen anytime soon then the best way we can fight back and demand these agencies to tighten down their reporting mistakes is to create increased competition.

Think about it…just like Ma Bell.  When the phone industry was cut into several smaller pieces you saw prices fall, an increase in products and improved customer service.

If we had 7 or 8 credit reporting agencies that were all nationally recognized. The “old guard” big 3 would be forced to improve the accuracy in reporting, we’d see an increase in product and improved customer service.  If there was a problem or mistake on your credit report YOU REALLY COULD call and file a complaint and have a real customer service agent administer some REAL credit repair help.  I’m talking about helping  you right then and there resolve your issue!

This would spur real time reporting.  Why is that important you ask?  The old post a payment, pay down a loan or correct an inaccuracy then wait for 30 days to see what happens to your credit report and credit score is just plain old fashioned.  I mean if your credit score was 660 and you applied $2000 to your $3000 line of credit visa why can’t we see the score jump up to 700 or whatever it is within a few moments?  If the collection account that has been inaccurately reporting has now been corrected I have to wait 30 days to see a change in my credit score?  Are they serious?  In today’s day and age do you believe they don’t have the technology?  Don’t believe it for a second…

I mean the credit bureaus have got to get with the times.  Real time reporting and real competition are what this industry needs!

Let me know what your thoughts are on this…

Be Bold!

Herschel