Can Renting Build Credit History

 
Historically building an impressive credit history and higher score was done by paying mortgage, student, and auto loans as well as credit cards on time. The tracking of other reoccurring payments such as rent, cable, utility and mobile phone payments wasn’t taken into account. Even if someone never missed a payment they would still end up with no credit to speak of.
 
Two of the major credit bureaus: TransUnion and Experian are now incorporating rental data in the credit profiles. So paying rent on time can now be an opportunity to increase your credit score.
 
These two bureaus are gathering information through RentTrac. So renters that use RentTrac to make payments are providing information to Equifax and TransUnion.
 
A study done by RentBureau found that after Experian started gathering this information 97% of the study group built a credit score based on their payment history.
 
This also benefitted people already with credit scores also by increasing them 29 points on average.

More Changes?

While bureaus don’t currently count payments on utility, cable, mobile phones, doctors and hospitals, there is a support growing for including some of these into credit history as well.
 
The reasons for this support is because currently paying your phone bills on time doesn’t do anything for your score. However if you fall behind and it goes to collections, that will have a negative impact on your credit score.
 

Credit history, scores may improve with bureau changes by csmonitor.com

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Sen. Dick Blumenthal wants explanations from the three credit rating bureaus about a New York Times report about a VIP list they allegedly keep that favors the rich and famous over everyone else.

The Connecticut Democrat wrote a letter Monday to Equifax, Experian and TransUnion about the reported separate system in which errors and disputes are resolved faster and with more attention than with other consumers, who must rely on an automated system and outsourced customer support to clear up mistakes.

“I am deeply troubled by the implication that your companies are neglecting the majority of consumers and providing preferential treatment for wealthy, famous or well-connected persons, and I ask you to confirm or deny these reports and provide more information on your dispute resolution process,” he wrote in the letter.

“An error-free credit report is vital to a consumer’s financial health, and consumers must be able to quickly resolve disputes and mistakes with the cooperation of the credit reporting bureau,” he wrote. “Every consumer deserves this cooperation, not just the rich and powerful.”

But the credit bureaus deny keeping VIP lists.

“We did respond to the senator, and to be as clear as possible, we do not have VIP lists that provides preferential treatment to anyone,” Tim Klein, a spokesman for Equifax, told FoxNews.com.

“We received the letter, and will be providing a response to Sen. Blumenthal,” Gerry Tschopp, a spokesman for Experian, said in an email to FoxNews.com. “As we’ve stated before, Experian does not have a VIP list.”

The New York Times interviewed an Arkansas resident who said she had been denied employment and credit because her filing was mixed up with a felon who had the same name and birthday, and a Louisiana consumer struggled to remove errors from her credit report that stemmed from a mix-up with a less credit-worthy person with the same name, similar address and Social Security number.

The newspaper also interviewed a number of consumer lawyers and advocates who accused the credit bureaus of lacking an incentive to improve the system because their main clients are the creditors, not consumers.

But Klein cited a new study from the Policy and Economic Research Council that showed less than 1 percent of all credit reports reviewed by the consumers prompted a dispute that resulted in a credit score correction and an increase of a credit score of 25 points or greater. It also showed that one half of one percent of all credit reports reviewed by consumers after the dispute process ended had credit scores that moved to a higher “credit risk tier” as a result of the dispute.

“We’re not perfect by any stretch, but we get it right a preponderance of the time,” he said.

Herschel’ s Rant…

Alrighty then!  Seriously?

Something is just not right in Denmark!  These boys continue to tell slanted tales and talk in half truths.

Look, VIP lists have been found in the credit bureaus training manuals a few years back.  Now they may have removed them but have us believe they don’t exist?  Hogwash!  Ex-employees have confirmed the existence of such pointed activity and total disregard for fair play for the average consumer.

Did you know when we process a dispute because it is signed by an attorney, we get a letter back from each credit bureau thanking us for the inquiry?  I challenge you as a consumer to get that kind of treatment.  Why?  Because attorneys are on the VIP list.  Same treatment as an average consumer?  Hardly…

And to say only 1% of disputes result on an increase of credit score?  It truly makes your head spin with the tales they tell.  We know for fact beyond any shadow of doubt that this statement is an absolute distortion on the real truth.  The reason is everyday we hear from members of increases in their credit scores.  Everyday we are told of another member being able to buy the home they wanted because of the rise in credit score from our program.  Tons of testimonials are on the website.  Now this might be a true statistic for the unknowing consumer trying to dispute their own credit…perhaps.  But with a company like ours?  Come on who are they kidding!

The credit bureaus are not our friends by any stretch of the imagination…

But that’s just my opinion!

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Now all three of the credit reporting agencies are in the business of pushing the FAKE credit scores to the unknowing consumer who thinks they are buying their FICO scores.

Shame…Shame…Shame is all I can say.

I mean really what is the purpose in selling you a credit score that not one single lender cares about?   There is no mortgage company, auto loan company or even a mattress lender out there that says “OH, YOU HAVE FAKO SCORES? SURE WE”LL BE HAPPY TO LEND YOU MONEY!”

It’s not going to happen!

This product has been created to simply dupe the unknowing consumer out of their hard earned cash! Greed has taken over the last of the big three and now all selling millions of hard working people this dope, errr I mean hope and belief that their credit scores are higher than they really are.

The credit reporting agencies are doing this because they know that probably less than 5% of the population will know the difference between a FAKE-O and a FICO credit score!

The FTC last year came out with this video to try and get the word out that these FAKE-O and useless products.  You can check it out here…

http://www.youtube.com/watch?v=krG2d7OK8MM

It’s a cutesy look but the truth of the matter is the Federal Trade Commission just doesn’t have the marketing dollars to get the word out that these fake scores are absolutely useless to you.

How can you protect yourself you ask?

• Well, if your credit is being pulled by a mortgage broker or other lender then you are most likely safe.
• If you go on the internet to pull your credit score make sure it says it is a FICO score because any other name or slick sales pitch calling it anything else is a FAKE-O score.
• Real FICO scores will cost you a few bucks.  Anything giving you free credit scores are FAKE-O for sure!
• Credit scores will not be included on your free credit reports at www.annualcreditreport.com but can be obtained for a few dollars.

• The only scores that you should concern yourself with are FICO scores provided by the Fair Issac Corporation and can be obtained from www.myfico.com

If you have a credit report that you’re unsure of or would like some help getting real FICO scores pulled and an overall review of how to improve your credit and scores just CLICK HERE

As in all things in life…Caveat Emptor..Let the buyer beware!

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Are you having fun yet?

I get a kick out of the folks that say you can do this yourself.  The truth is you can but the better question might be “should you try and perform credit repair yourself?”.

Ever had a car break down?  Sure most of us have but when the brakes need fixed or the transmission is slipping do you take it to an auto shop where a professional mechanic can work on it so that it runs safely again?  Most of us do, but…you could repair this yourself!

You know being in the south, during the summer, when the air conditioning gives out can be a very sticky, sweaty time.  Do you call a professional to get your house cooled back down?  Most of us do, but…you could repair this yourself!

Representing yourself in a court of law is something most people would say is silly and unwise.  The reasons can be many but the fact is you will most likely make a fool of yourself because you just don’t fully know the intricacies of the law …unless you’re a trained lawyer.  Most smart lawyers would never even represent themselves.  So, do you get a lawyer when you go to court?  Most of us do, but you could do it yourself!

When you practice any trade in which you have not been trained you will most likely take more time, spend more money and many times make your situation worse than it was because you just do not know what to expect nor fully how to respond or react.  I ask you after years of being in your current profession could anybody starting today do what you do with the precision, experience, and know how that you would perform in completing that same task?

Can’t be done can it?

Testifying before congress one CEO of an independent Arizona credit bureau likened the process to “having an IRS audit, brain surgery, getting a tooth pulled or going to your own funeral!”

Now call me crazy but none of that sounds fun.  Quite frankly if the credit bureaus have 79% errors, according to the US Public Interest Research Group, and that only 11% of those people with errors dispute those facts and only 5% of those ever challenge the results of the investigation the credit bureaus are banking, LITERALLY banking on the average consumers ignorance trying to get through the credit repair maze.

Getting the assistance of a professional in almost all cases usually saves you time and money. Of course, if time is not important and you’re willing to throw away some money in extra interest then by all means…Performing credit repair is easy!

If you want some help in seeing what an attorney assisted credit repair firm can do for you then check out more at the National Credit Federation Website! or post a comment and let me know your thoughts!

Be Bold!

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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

The post Can the Credit Bureaus be revamped? appeared first on National Credit Federation.

The short reality is every single entry on your credit report is suspect. The Fair Credit Reporting Act (FCRA) and law that states you as a consumer have the right to challenge the credit reporting agencies (CRA’s) and demand removal of any trade lines that are reported inaccurately, that cannot be validated or simply outdated.

The law requires the credit bureaus perform their own credit repair by advising that a bankruptcy can remain on your credit report for up to 10 years.  Most other items must be removed at the 7 year mark.  Now a bankruptcy CAN remain on your credit for up to 10 years.  No where in the FCRA or any other law for that matter does it say that it MUST be on your report.  As a matter of fact, there is nothing in the law that says it HAS to be on your credit for 10 mins, 10 days  or 10 months let alone the 10 years.

Now, let me point out the law says nothing about this, that is if the bankruptcy actually happened you can’t do anything about it.   Certainly, you would never want to form your dispute by denying the bankruptcy is yours if you really did file a chapter 7 or 13 bankruptcy.   I mean truth be told, if it happened it happened, but that’s not the issue here.  During the credit repair process, a challenge to the CRA’s is simply a demand for investigation to validate the case, to verify that every single thing reported is accurate.

The FCRA says that if certain time lines are not met and if proper validation and verification of accuracy of the bankruptcy are not met then the item must be deleted from your credit report.   Not to kill you with all the dirty little details but a large percent of all trade lines have mistakes and simply cannot or will not be validated.

The trick is to know what you’re looking for and how to prepare the disputes going to the credit bureaus.  If you’re interested in reading more about this you may want to dig into the FCRA so make sure to check this out…CLICK HERE. The actual section you can review is 611 (click here).

I hope this gives a bit more clarity to this question.  Let me know your thoughts…

Be Bold!

Herschel

The post Can you legally remove a bankruptcy with credit repair? appeared first on National Credit Federation.

One of our consultants popped in yesterday afternoon to drop off a deal (a good thing).  He was telling me of a situation he ran into and wanted to know what kind of an effect it could have on his prospects credit score.

Well the situation was a $110k line of credit which had a balance of 96k.  This particular credit line was rated R-1 paid as agreed.  A perfect rating, right?  or was it?

Unfortunately we see this kind of thing all the time…“but wait” you say, this is a good thing!  Well, upon further investigation I found out this was actually a home equity line of credit, which makes sense.  I mean how may visa cards do you see with a 110k credit line?

Let’s look at this a couple of ways.  First thing is it’s a home equity line of credit so it’s tied to real estate which makes it a mortgage loan, right?  Well, yes, it is a mortage albiet a line of credit which by definition means revolving, right?  so is the R-1 rating correct or should it be M-1?

Survey says…it’s a Home Equity Line and while you don’t see this all the time the correct rating should be a mortgage shown as a Home Equity Line

When a creditor rates this line of credit as revolving or R-1 the FICO scoring system eats this alive because it sees 96K owed on a 110K available credit line so this person MUST be in trouble and might take a big hit to the credit scores.

When it is rated as a mortgage or Home Equity Line then FICO understands this is against real estate and grades it based more on payment history and not as heavily in the amount owed area.

So, then the question becomes “Why would a creditor do this?”  The answer is to keep your scores suppressed!  I know the truth can hurt but the reality is most creditors giving a home equity line do not want this line paid off.

Ok, so if they don’t want the line paid off then what’s the best way to keep these deals on their books?  You’ve got it!  By suppressing your credit scores, through misreporting, your options can become limited in what you might be able to do.  If your scores are suppressed you might not be able to get a mortgage refinance or another credit line at better terms so…..

It’s not fair but it is life and how most creditors play the game.  Fighting back is your right so if you find your HE Line of Credit rating like this it very well could be costing you money!  You can find out more about credit repair and should you make the effort to do it by CLICKING HERE.

Be Bold!

Herschel

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