EasyBadCreditRepair.com

When applying for a loan a person needs to have a credit report issued by a credit bureau. This credit bureau is an organization that tracks down the credit history of an individual as well as any related information connected with the person in question. In order for a government to sustain its financial needs credit bureaus are created to effectively manage credit risks. This is the reason why there is an increase in the creation of credit bureaus around the world.  Aside from the credit reports these credit bureaus have other functions. There are three major credit reporting agencies that are present in the United States these are: Equifax, Experian and TransUnion, they are tasked by the Federal Government to handle the credit records of consumers, and issue credit report to interested parties such as financial institutions.

These are a list of their functions:

• Collection and Updating of Credit Information
  Credit bureaus gather complete information regarding individual’s personal information as well as credit activities. The usual information that they gather contains the person’s identification details, his employment background, his payment records and public records information. Basically they keep a record of everything about the individual. They are also tasked to do updating in case the person has transferred to another job, or place of residence. In case the person files for bankruptcy or perform other credit related activities they keep a record of it all. There are cases when people are arrested or sued so the credit bureau has this information on their files too.
• Computation of Credit Scores
• Credit bureaus use a specialize software that tabulates the credit rating of each consumer. The credit score that it gives is very important since lenders access these files to help them decide whether to approved a consumer’s credit line or turn them down. Credit (FICO) scores range from 350 to 850. If your rating is 720 or higher the lending institution will tagged you as a trustworthy borrower. Your personal credit score is determined by your latest payment history for the past two years. TransUnion determines the credit score through a set of factors. They usually get information on how you pay your loans, how much money you owe, length of time when you opened an account, different types of credit that you use, and your available credits.
• Provide Credit Information to Financial Institutions
  For people who wants to ask for a bank loan the credit information provided by the credit bureau can help these financial institutions decide whether to grant a loan or not.
• Respond to Consumer Disputes
  The credit bureau is tasked by the Federal Government to help the consumer settle their disputes and complaints. The credit bureau is obliged to conduct an investigation in order to settle these disputes and to make the needed updates in the consumer’s credit file. It is a common fact that sometimes typographical errors can be made by either the creditor or the credit bureau. The investigation that this credit bureau makes usually takes a maximum of 30 days and the consumer should be sent a response to their dispute within this period. If the specific bureau has found validity to the person’s claim he needs to inform the other two credit bureaus in order for them to update their records.

It is wise to get a copy of these credit reports annually in order to check it for accuracy.  List down any set of items that you found that is inconsistent or misleading. Sometimes some people see this credit reports as potentially harmful but if view positively the credit reports provided by these credit bureau can help the people manage their finances better, help them not to fall into debt traps and help them improve their credit scores so that they would have more options in the future, if ever they decide to file for a loan.

Consumers must take note also that each of the three credit bureaus operate separately from the other so it is advisable to get copies( one from each) from each of them separately then make a comparison. As a consumer, under the Fair Credit Reporting Act you have your specific rights especially when you believe that you are a victim of an unfair credit report.

Bankruptcy does lead to a crippling situation. Assets are more likely to get washed out and debts will still haunt you years after. Next, you will observe that after bankruptcy proceedings your credit standing drops to God knows how low. But hey enough with lingering on your dread, it’s time to pick yourself up from the slump your in. Think your bankruptcy as a major reboot, a fresh start to rebuild and to live wisely. There are ways to get oneself credit repaired after bankruptcy. It all takes a major unlearning of bad habits and a few learning of good ones.

Change Your Bad Habits

First thing that you have to unlearn are bad habits. Overspending is one big mistake that many people are fondly tempted to commit. I remember an alarming news in the past where credit cards companies are targeting college students. The consequence is mounting debts for a no-wage earning adolescents. Even earning professionals are not exempt from making poorly thought of decisions. Impulse buying can be so damaging. The remedy is to plan out your monthly expenses and sticking to it. Setting aside 10% of your income as savings can be a source of emergency funds or become a tool for you to buy assets in the future.

Next rule to learn is “study and examine all investment ventures”. Majority of foreclosures occurred because of bad investment decisions. Many had been enticed by sub-prime lending, which many people can sustain under a healthy economy. But when recession crept in and brought job loss and skyrocketing interest rates, that’s when the investment collapsed.  The most hurtful part comes when the property was acquired thru a loan. It ended with people losing their asset and gaining more liabilities with the bank. The lesson here is never enter into a volatile investment using borrowed money.

Third, ants teach us a valuable lesson of having contingency plan during tough times. Job loss wouldn’t have been too difficult if there was about 6 months worth of savings set aside to tide one’s way until you find another job. Ants teach us to save up for the rainy day. Maybe one should learn from that moving forward.

After learning from your mistakes, it’s time to get oneself moving to getting your credit worthiness back up. Bankruptcy does deliver such a huge blow to your credit score and it sticks on your credit report for years. However, this is not a dead end but just a temporary road block. You could get credits after a bankruptcy.  Here are the ways to reestablish your credit worthiness.

Being informed at the rudiments of credit scoring is a powerful tool. Knowing the considerations to generate your score puts you at the advantage as you would know what efforts are needed to get your score up.

“Payment History” forms 35% of your credit score. That means you have to start and continue to be a faithful payor to your creditors.

“Amounts Owed” is weighted to be 30% of your score. You should at least keep your outstanding balance to the least possible amount. The higher one’s outstanding due the lower the score.

“Length of your Credit History” forms 15% of your credit score. The shorter you are able to repay and close the loan the better it affects your credit standing.

“New Credits” are recently approved loans or credit lines. Having just a few would be best. 10 percent of the credit score is taken from this category.

“Types of Credit Used” is about the credit variation you are involved with. A mix of secured credit cards, student loans and extra loans like buy now pay later increase your score. This category forms 10 percent of your credit score.

What To Do After Bankruptcy

Now how do you work on these categories? First, get a secured credit card with a nominal interest rate. Since Bankruptcy will prohibit you possessing an unsecured credit card, a secured credit card will be your tool to work on all factors. Might be scary at first since most bankruptcy is due to credit card misuse but I tell you, this is your way to recovery as well. Just remember what you learned from your mistake. This time, use the 35/40-day no-interest period on your card and zero out your debts. Another trick is to bill something on the card and pay it off shortly. This will do good on your payment history and the amounts owed.

Next, get other credit sources. This will be for the types of credits used, payment history and amounts owed. You may want to consider having a short-term loan like a student loan or a bad credit loan that has a negotiable interest rate. By paying these loans religiously, you would definitely get good points for the above mentioned factors.

Fourth, never close any zero-balance accounts. They do not pose any risk for you but instead they work wonders for your credit report. It would indicate you having a wide number of credit used, a good payment and credit history.

Having a good business relationship with your lenders would work to your advantage. This would allow you chances of renegotiating your terms at a time when you are in a tight situation. This would also work both ways as the lenders are guaranteed of continued payment and you reduce the risk of having a bad remark on your credit report.

Lastly, keeping an eye to the entries that get sent to the credit bureau is a good thing to do. It would be best you are subscribed monthly to one credit bureau report and get a copy of the other two credit reports annually.  Or better yet you can subscribe to TrueCredit for under $20/month and get real time monitoring from all three major credit bureaus.

Not everybody who says that they will help you will really do. People who are claiming to help you with your credit have their own personal agendas so it would be wise not to listen to them if they say that you should dispute everything on your credit report. At first this would look like sound advice but later on you will realize that if you do this you will do more harm than good to your future credit. You will be surprise on how many enemies you will gain in the credit world by a simple action as disputing everything.

Credit report disputes are one of the techniques that you can employ to repair your credit. The dispute is accomplished by submitting a written dispute to the credit bureaus online or via mail. The credit bureau is required by law to investigate your allegations and remove the disputed items that they may find as inaccurate or unverifiable.

Too much of anything is bad is a wise saying indeed. Your actions can backfire if you make too many disputes or if you dispute almost everything on your credit report. Here are some reasons why it is not wise to dispute everything:

• Too many disputes may be considered frivolous (silly; not worth to be given attention; inconsequential) as such is the case the law allows the credit bureaus to refuse to process your dispute(s). Any exception to the rule is when you are a victim of identity theft since this is really a justifiable reason. Although you must provide proper documentation on said issue showing that the accounts that are opened under your name is really not yours.
• If everything on your credit report was removed this may look like a clean slate but this is far from the truth. If you have nothing on your credit report then you do not have a credit score.  For FICO’s purpose you need to have at least one account that has been open for around six months. You cannot get a credit card without a credit score that is what it all boils down to.

Having two or three disputes at a time is a good idea. That way the credit bureaus will not think your overdoing things. Always send copies of the documents that you use as evidence for your dispute but keep the original ones in your possession. Sending these documents through certified mail with a return receipt request will give you the proof that you need to file a complaint.

If you find any trouble with the credit bureau you can file your dispute with the Federal Trade Commission. The positive and helpful thing that you can do is to focus all of your time and energy towards working to get a better credit score by simply paying on time and reducing your debts.

Experian began by the merging of two companies who are both leaders in their respective fields: former TRW Information Systems & Services and the CCN Group in 1996 by GUS plc. TRW is an American corporation who specializes mainly in aerospace, automotive and credit reporting. TRW is a pioneer in the field of electronic components, integrated circuits, computers, software and systems engineering.  TRW has built several spacecrafts such as Pioneer 1, Pioneer 10 and several space based observatories as well.

CCN was Europe’s leading information services company and was formed by GUS (Great Universal Stores) plc in the United Kingdom. CCN has grown from the need to provide credit checking facilities and marketing information to GUS plc retail businesses.
GUS plc is one of the leading retailers and suppliers of business services in the United Kingdom. In 1996, CCN was not only the leading credit bureau in the United Kingdom but has also expanded worldwide with the international office network development; principally selling and implementing analytical products.

The new combined group, Experian could support multinational clients across all the major credit markets. Experian began credit reporting in the United States in 1996. They collect data from lenders, telecommunications and motor vehicle departments. During the next ten years after its establishment Experian has proven its global competitiveness for broadening its product range providing valuable information and analytical skills to new industry sectors. Experian has expanded its market to important countries of the world like Asia Pacific, East Europe and Latin America.
In 2002, Experian acquired ConsumerInfo.com which is the interactive business arm of Experian. Because of ConsumerInfo.com Experian become establish as the market leader in supplying credit reports to consumers thus reducing identity theft risk. In 2003, Experian acquired Scorex, a decision analytics company strengthening the company’s global leadership.

By the year 2004, Experian acquired two companies that specialize in digital marketing: QAS, who specializes in address management software and CheetahMail, email marketing company who are both leaders in their field of expertise.

In October 11, 2006, Experian, through its parent GUS’ decision and assessment was launched as an independent company. The reason for this is so that shareholders can be given an opportunity to directly invest in the future growth of Experian. Since the time of its launch as an independent company Experian has successfully expand geographically. In 2007, Experian acquired Serasa, the world’s fourth largest credit bureau and the largest in Brazil. This helped Experian command a big slice in the world’s fastest growing markets.

Today Experian continues to lead the global information services by providing data and analytical tools to clients in more than 90 countries in the world. Experian supports client in every major industry such as in the field of telecommunications, healthcare, government and automotive. Experian also offers fraud protection services.

In 1968, TransUnion was created as the parent holding company of Union Tank Car Company, a rail car leasing company. They started as collecting manual business intelligence information about consumers. In, 1969 after purchasing Credit Bureau of Cook County (CBCC) a credit reporting agency was born by the name of TransUnion. After they acquire CBCC, they began to replace the accounts receivable data with automated tape-to-disc transfer, which cut the cost and saved the time in updating consumer files by leaps and bounds.

They also introduce the first online information storage retrieval data processing system. This system gave creditors access for fast and valuable consumer credit information. In the 70s and 80s, TransUnion has expanded their facilities and capabilities by investing in technology. Because of this in the late 80s they were able to achieved full coverage of the United States. They are maintaining the credit records of individual market active consumers in the country. TransUnion’s business soon expanded upon the purchase of major city credit bureaus, with service agreements with local owners of bureaus not for sale. In 1981 The Union Tank Car Company sold TransUnion to the Marmon Group.

In the 90s, TransUnion extended their operations beyond the credit reporting industry. They have branch out by offering real estate solution to lenders by offering them access about prospective real estate clients.

In 2002, TransUnion joined the direct-to-consumer market by acquiring TrueCredit.com. Right now they are helping millions of consumers by protecting and improving their credit through the help of TrueCredit.com Presently, TransUnion operates in 250 offices across America and 24 other countries and five continents as well. Right now they are based in Chicago, Illinois. TransUnion’s main business is based on credit reporting and data services for businesses. This company sells credit reports through Truecredit.com. They also do employment screening thru their PEER (Pre-Employment Evaluation Report). Aside from these services they do healthcare evaluations and a whole range of data-driven business risk management solutions.

Consumer lenders such as banks, credit card companies and credit unions use the information that TransUnion gathers to compare their consumer credit worthiness and credit risk. A good credit score can help these lenders guarantees them that their borrowers can pay them back.
Aside from consumer credit reporting, TransUnion provides other services such as identity theft protection, fraud protection and credit monitoring. TransUnion is required to investigate allegations of discrepancies on their consumer reports. An individual’s credit report is affected by his overall credit score so if a discrepancy is found, the individual can file for a dispute.

To obtain a free credit report from TransUnion individuals can visit their website and click “Free Credit Report”. The actual credit score as reported by each agency is not included in the annual free credit report. Individuals can pay a company’s fee to get their credit score or to directly to their lenders. TransUnion’s website also provides contact information should consumers need to place a “fraud alert” on their report because of identity theft or fraud.

Equifax Inc. is the largest credit bureau in the United States. This company provides consumer information for businesses and consumers.  The credit score that it gives is the basis of whether the company would extend its credit to any prospective lenders.  Although majority of its revenue (73%) comes from the United States they still want to expand their services worldwide. The demand for Equifax services are very high because of the housing boom and low interest rates that necessitates the need for credit score and background checking.
Equifax offers payment services, analytics, software, modeling, consulting and direct-to-consumer services.

The company expedites more than ten million electronic transactions a day for 300,000 customers worldwide. Although Equifax is based in Atlanta Georgia, it operates in 18 countries and sales in more than 45 countries. Equifax offers consumer and commercial credit information in Argentina, Brazil, Canada, Chile, El Salvador, Peru, Portugal, Spain and the United Kingdom. Equifax holds the topnotch position when it comes to check guarantee and verification in Australia, Canada, France, Ireland, New Zealand, United Kingdom and United States.

Late 19th Century Humble Beginnings
Brothers Cator and Guy Woolford founded Equifax in 1898. It was Cator Woolford who started his first credit bureau business as a credit grocer in Chattanooga, Tennessee. He started compiling a list of customers with good credit standing for the local Retail Grocer’s Association. Woolford sold copies of his book to the other merchants to cover the cost of his expenses. His efforts were successfully rewarded thus begun his credit reporting career. With the help of his brother Guy, a lawyer who is six years younger than him, Cator settled in Atlanta as the new site of his venture. On March 22, 1899 the company started their business. He named their company “Retail Credit Company”. This is located on the fifth floor of the Gould Building at 10 Denatur Street. Because of his previous business success in Tennessee, Cator seek out an alliance with the city’s grocers. The Woolfords copied credit information on their customers in individual slips of paper, and compiled this intoi a book. The work has grown so fast that within a few months the brothers hired two additional men to assist them. In June of that same year the the book were run out in a mimeograph machine and hard bound with the title” Merchant’s Guide”. Merchants paid $25 a year to use the book and for the subsequent credit reports the grocers paid less. Although their clients were growing the company posted a loss of $2,242 during their first year.

During their second year the customers increase in huge numbers together with the branching out of the company in fast growing commercial centers in Georgia. By the end of the second year the staff has expanded to eight and the sales volume was growing steady.

Insurance Related Business Expansion
In June 1901 Retail Credit branched out by providing information of potential policy holders to Equitable Life Assurance Society. Insurance companies paid for this valuable information. In March 1902, because of the growing insurance business Guy opened another business in Dallas, Texas shortly followed by another branch in Cincinnati. In April 1903, they have close down their office in Augusta after noticing that there is no financial growth in this area. Within the same year the company split into two main clients: handling retail and insurance report.
In 1908 the company provided reliable reports” National Inspection Service which are useful for insurance purposes. Since by the year end they are growing rapidly their enterprise decided to incorporate hence they now become the Retail Credit Company Inc.

In 1920, they suffered from serious competition when a group of insurance companies started forming the American Service Bureau which provides investigative reports that are like those that Retail Credit was providing. This resulted to a serious drop in their credit and insurance reporting in 1921.

In 1923 they form a new corporation, Credit Service Exchange but later sold this venture to a businessman by the name of L.S. Gilbert.  In the 1930s they started using full time company trained investigators. World War II has seriously impacted the business since most of these men were drafted to serve in the army so they finally allowed women to work as inspectors or wives to take over their husband’s job. Because of the war the report volume had sunk to six million.

Remarkable Postwar Growth
Because of the healthy growth in the U.S. economy during the post war Retail Credit has bounced back financially. In the mid 1960s they had started converted their manual files into electronic data systems. This proves to be their greatest asset against their competitors.
In April 1971, Congress has passed the Fair Credit Reporting Act. Under this law consumers were given the right to access their credit files to correct discrepancies. They also restricted the kinds of information that credit bureau like Retail Credit offers. In 1974, Retail Credit was charged with violating the Fair Credit Reporting Act and Federal Trade Commission Act.  A significant order given by the U.S. government was in giving the Retail Credit an instruction to stop giving negative ratings to their consumers and to stop investigators from disguising themselves when they conduct their inquiries.

Company Metamorphosis from 1979 and Beyond
Retail Credit has changed its name into Equifax derived from “equitable factual information”. It also signaled the change in its activities they branched out in marketing functions. In the late 1970s Equifax expanded their company’s operation by purchasing small local credit reporting agencies to expand their computerized filing. In 1980s the credit bureau industry took a trend in data consolidation. From 1983 to 1988 their revenue grew into $743 million because of their double earnings.  In May 1989, they formed an alliance with CSC Credit Services that made a total of 300 bureaus for Equifax. During that time the company was formed into four divisions: insurance information services, ITS traditional strength, credit services and Canadian operations. Equifax has entered the European market in the early 90s.