WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) released a report on the consumer experience with the three largest nationwide credit reporting companies: Equifax Information Services, LLC; Experian Information Solutions Inc.; and TransUnion LLC. Among the key takeaways in the report, which is one of the most comprehensive studies of credit reporting to date, are that credit card history dominates the information in consumer reports and that debt collection items generate the highest rate of disputes.
“Today’s study is another step toward bringing more clarity to the confusing world of credit reports. It will help educate regulators and consumers about how this important industry works,” said CFPB Director Richard Cordray. “If consumers know how these companies handle their credit histories, they can make better decisions on how to handle their financial lives.”
Credit reporting companies, also called credit bureaus, are businesses that track a consumer’s credit history. The credit reports they generate – and the three-digit credit scores that are based on those reports – play an increasingly important role in the lives of American consumers. Most decisions to grant credit and set interest rates for loans are made using information contained in credit reports as a key decision factor.
Equifax, Experian, and TransUnion each have more than 200 million files on consumers. In a typical month, they receive updates from approximately 10,000 information “furnishers,” which are the entities that supply data on consumers. The furnishers do this on more than 1.3 billion “trade lines,” which are individual information sources on a consumer report such as a consumer’s accounts for a car loan, mortgage loan, or credit card.
The report is the result of the CFPB analyzing U.S. information from 2011, including information submitted by TransUnion, Equifax, and Experian. Among the key takeaways in the report:
More than half of the trade lines in the credit bureau databases are supplied by the credit card industry: Credit reporting companies get their information from a variety of industries but more than half of the account information is supplied by credit card companies. Specifically, 40 percent comes from bank cards, such as general credit cards, and 18 percent comes from retail credit cards. Only 7 percent comes from mortgage lenders or servicers, and only 4 percent comes from auto lenders.
More than a third of disputes have to do with collections: In 2011, consumers reached out to the credit reporting companies roughly 8 million times, resulting in disputes of 32 to 38 million items in their credit files. Almost 40 percent of the disputes relate to debt in collections, and debt in collections is five times more likely to be disputed than mortgage information. According to the industry, some of this may have to do with consumers’ incentive to dispute any negative information on their reports.
Fewer than one in five people obtain copies of their credit report each year: The most effective way for consumers to identify errors in their reports is to obtain copies and review them. But only about 44 million consumers per year, or about one in five, obtain copies of their files.
Most information contained in credit reports comes from a few large companies: Most information contained in credit files comes from a small number of large banks and other financial institutions. In fact, the top 10 data furnishers provide 57 percent of the trade lines coming into the credit reporting companies. The top 50 furnishers provide 72 percent. And the top 100 furnishers provide 76 percent.
Most complaints are forwarded to the furnishers that provided the original information: The credit reporting companies resolve an average of 15 percent of consumer disputed items internally, without getting the data furnishers involved. The remaining 85 percent are passed on to the furnishers. Today’s report, however, found that the documentation consumers mail in to support their cases may not be getting passed on to the data furnishers for them to properly investigate and report back to the credit reporting company.
The CFPB is the first federal government agency that supervises both consumer reporting companies and those that provide consumer reporting companies with consumers’ credit information, such as large banks and many types of nonbanks. In July, the CFPB adopted a rule to extend its supervision authority to cover larger consumer reporting agencies, and in September, it released the examination procedures it will use to examine these companies. Previously, these companies were not supervised at the federal level.
In September, the CFPB released a study examining credit scores that compared credit scores sold to creditors and those sold to consumers. It found that while credit scores sold by credit bureaus to consumers were generally highly correlated with credit scores used by lenders, about one in five consumers would likely receive a score that could be materially different from what a lender would see.
In October, the CFPB began accepting individual complaints about credit reporting companies. If a consumer files a complaint with a credit reporting company and is dissatisfied with the resolution, the CFPB is available to assist. Consumers can find out more at: https://help.consumerfinance.gov/app/creditreporting/ask
The CFPB also published a Consumer Advisory about credit reports earlier this year at: http://files.consumerfinance.gov/f/201207_cfpb_consumer-advisory_check-your-credit-score-every-year.pdf
Credit restoration services, by default, have always been Reactive; letters are submitted to the bureaus and then the waiting game begins...and ends with receipt of the responses in sometimes 45 days or more!
This inconsistency has been accepted as part of the "process" by a majority of the industry. Well, we've decided it's time to break from the norm with the implementation of our new Proactive approach.
A proactive philosophy creates an atmosphere of less stress and shorter time-frames for you. When applied to our month-to-month program, this can also save you hundreds of dollars
over the term of your enrollment with us. Now, once our restoration process begins, we control the balance of planning and execution within your account by driving
results instead of relying
on the normal slow and bothersome paper-shuffle between company and client.
To learn more about how this new approach to credit restoration can potentially help you, please contact me direct. I would be happy to explore the possibility further.
In this day and age, it’s unusual for people to really listen to someone’s needs. If you select us to be your Credit Coach and Credit Consultants, we will listen. Your credit improvement plan will be based on your Credit Score Goals. Your Credit Coach will take the time to listen at your interview to your specific needs and base your credit improvement plan on those specific credit score goals.
One of the first questions we will ask you is to describe the ideal credit repair experience. Essentially, what you expected from us and what your end goals are. As we were speaking, we will cultivate your credit score goals and plan of action. Here is what other clients have said is their “Ultimate Scenario” for their credit repair program:
Raise my credit score high enough so we can buy a house
Eliminate my past credit challenges
Help give me a new start
Help me purchase a new car
Help me settle some of my debts
Lower my insurance premiums
I work in the financial industry and cannot get a job without a higher credit score
Our only goal is to help you fulfill your dreams! We know that if I can do that, you are more likely to refer us to people you know who may also need our services. Please do refer our credit services to your friends, family and colleagues so we may help them fulfill their dreams too. We’ll be sure to take extra care of them and provide them with the same high level of service and attention that we will give you.
Cambridge Credit Consultants is committed to helping you achieve your credit goals and we will keep them in front of us so we stay focused. It is very important that we understand what you are trying to accomplish in the beginning. This way we can help you in the best way possible but based on your needs and time lines. During your time with us, please let us know if there are any changes to your plan or if you feel we need a new strategy for you.
Thank you again for considering Cambridge Credit Consultants to assist you in restoring your credit. Rest assured that we will be your guide through this often-complicated process. Again, thank you for the opportunity to serve you.
Approving a borrower with a 600 credit score or 620 credit score is getting harder if not impossible. Our Credit Consultants receive referrals from anyone who works with clients who need a higher credit score and want to improve their credit rating.
If you have clients asking "how do I improve my credit score", we are your solution. Mortgage Loan Officers, Bankers, Insurance Agents, Credit Unions, and Auto Professionals use us to help make their borrowers more highly qualified. Realtors and Real Estate Professionals use us to help their clients purchase a new when they were previously not eligible and Lawyers use us to help their bankruptcy and divorce clients. We are now starting to see Temporary Employment Agencies use us to help their clients gain employment. Cambridge is not one of those bad client repair services, we are credit experts and will help you build your business.
Why Refer to Us
35% of Americans have a credit score of 640 or lower
Market yourself as the person who cares about your client and wants to help them improve their situation
Approve clients that couldn't be approved before
Get more referrals for yourself by serving your clients to the fullest, you help them and they will help you
We are Credit Experts and will help your clients raise their credit scores. Bad client repair services are plentiful and if you have had experiences with companies like that in the past, you will find us a breath of fresh air.
AND it is easy to keep track of all the referrals you send to us. We keep you up to date with automatic account status emails, and 24/7 internet access to all your files.
Watch a Video Tutorial of Our 24/7 Login System
How Do I Refer Business
(1) Call one of our Credit Experts
Call us and speak to a member of our staff about how we can help your clients. This call is free and you will receive invaluable information.
(2) Send us your client's credit report
With permission, send us your client's credit report and we will go over what we can do for them. In the future, you can just have your client contact us directly. You can be as involved as you wish. In some cases we will give your client some free advice and not charge them for credit repair. For others, they may not qualify for the program and we will notify you of that as well.
(3) Get email updates
You will receive email updates regarding the status of your client's account. You can also login to view your client's account at anytime, 24/7.
(4) Get a higher qualified borrower back
Scores should begin to improve within about 30 days. Some clients can improve their credit score enough in 30 days and some may take six months or longer. If your client wants to get into a new home, we can make that dream become a reality.
(5) Make more money by closing more deals and getting more referrals
Be able to tell your clients you can get them the best rates and market yourself as the expert. If your client is asking you, "how do I raise my score", Cambridge Credit Consultants is your solution. We can also help your clients realize the dream of homeownership.
The items on your credit report are called tradelines. They can either be positive or negative. Positive tradelines help your credit score and negative tradelines lower your credit score. Most negative items remain on your credit report for 7 years from the date of first delinquency, but there are exceptions:
Delinquencies (30 - 180 days late) remain for 7 years from the date of the initial missed payment.
Collection Accounts remain on your credit report for 7 years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked "paid collection" on the credit report.
Charged Off accounts remain for 7 years from the date of the initial missed payment that led to the charge off (the original delinquency date), even if payments are later made on the charged-off account.
Closed accounts are accounts that are no longer available for further use. Closed accounts may or may not have a zero balance. Closed accounts with delinquencies remain 7 years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain at least 10 years.
Lost credit card - If there are no delinquencies, credit cards that are reported lost will continue to be listed for 2 years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.
Bankruptcy- Chapters 7, 11, and 12 remain for 10 years from the filing date. Chapter 13 remains 7 years from the filing date. Accounts included in bankruptcy remain 7 years from the date they were reported as included in the bankruptcy.
Judgments (child support, civil & small claims) remain on your report for 7 years from the date the judgment is filed.
Tax Liens - (city, county, state, and federal) Unpaid tax liens remain 15 years from the filing date. Paid tax liens remain 7 years from the paid date of the lien. Federal can be cleared when paid or in a payment arrangement. Call us for details.
Inquiries remain on your credit report for 2 years, with those in the last 6 months usually given the most consideration.
Positive Accounts remain indefinitely and paid positive accounts remain 10 years.
The credit experts at Cambridge Credit Consultants understand credit law and how to use the laws to your advantage. As Grand Rapids credit repair leader, Cambridge Credit Consultants works with you during the dispute and verification process to achieve the best possible outcome in eliminating negative items that are impacting your credit score. Your credit coach will analyze your credit report to target for removal the inaccurate, misleading and unverifiable items. The good news is that the reporting system itself is flawed, the majority of negative items are on the report WRONG!
Last month we DELETED over 1200 Negative Items off of Credit Reports. Don't become a victim to high interest rates and absurd fees. Call us today for a free consultation. Improve Credit Score in 30 days.
Too many credit inquiries can lower your credit score, this I what this Grand Rapids Credit Repair and Credit Expert calls an “inquiry injury”. Your credit score will suffer if you have numerous inquiries. Please remember that 10% of your credit score is made up of inquiries. As your Credit Expert we want to help you with every point we can.
There is only one scenario in which your FICO credit score will not drop. This is when you are applying for a mortgage, auto loan or student loan. In those situations, FICO has altered the FICO scoring calculations to allow numerous inquiries. Thus, allowing you to shop for the best terms. You will still have the initial inquiry which can impact your score. However any inquiries, in a 45 day period of time, will only count as one inquiry. Please remember, this is for mortgage loans, student loans and auto loans only.
By now, you should know what your credit score is, and in the future you will continue to monitor it. One reason for this is so you will know if you qualify for something without having them pull your credit. Basically, before you apply for credit, ask what the minimum credit score is, what the minimum income requirement is, what the interest rate and payment schedule is.
By doing your research you will know whether you meet basic requirements and if you can afford the payment schedule. If you don’t meet the score requirement or find out the payment will be higher than you anticipated, you know not to even bother applying. In other words you have just prevented the injury inquiry.
Too many times people apply for credit without knowing the minimum requirements and specifics of the account they are applying for. Do your research; you should know what you are applying for before you grant a company permission to view your credit. Avoiding the inquiry injury is a Credit Expert strategy to keep your credit score from needlessly dropping.
If additional credit is what you are looking for, you can call your existing credit card company and ask for a credit line increase based on your payment history with them. You want to make it clear that you do not want your credit pulled.
Defensive Tip: The best offense is a good defense. Implement the strategies that you are learning from your Credit Expert, and you will be a winner!
Remember, if you have inquiries on your report that you did not authorize please call us. We can help you remove that erroneous information from your credit report.
Credit Experts disagree on how to fix credit and much of the advice is not in the best interest of the client but rather the credit repair companies bottom-line. If you have been researching the best ways to repair your credit you know that these opinions vary so how can you as a consumer know what credit repair program will work best for your current credit situation?
Our new Pay-Per-Deletion Program will help alleviate those concerns; no longer will you have to worry if you are spending good money after bad. Pay Per Deletion Credit Repair Program allows you to only pay for the items that are deleted, removed or corrected from your credit report. Our credit restoration program will show you how to fix credit and to raise your FICO credit score. Since this program is an “al-a-carte” program, you can pick and choose the items you want to include in your credit fix.
The first step is to have one of our credit consultants review your credit report and review your goals and objectives. Not everyone comes to us for the same reason. For some, the only need is to get a 620 credit score of 640 credit score to obtain a mortgage. If raising your credit score to qualify for a mortgage is you, your action plan for a higher credit score will be different than someone that wants to clean up their credit and reach a 720 credit score. Knowing your goals is imperative to your success.
The next step is for us to analyze your credit report and determine what needs to be done to raise your credit score. One of our credit experts will review your credit report and help you realize the impact of each account on your credit report, good or bad. Many times our credit coaching alone will raise your score more than half of the number of FICO points you need. Then you choose the items you want for us to include in your credit repair program, here are some examples of what you can include: collections, late payments, inquiries, charged-off accounts, judgments, tax liens, bankruptcies and other public records. Within your program we can even help you settle your debts for a fraction of what debt settlement companies would charge you. Most debt settlement companies will charge you 10% to 15% to settle your debts for you; this is in addition to the monthly fees they charge. Our credit consultants will help you settle your debts for just 5% of the amount owed, which is 50% to 65% less than our competition. In the first half of 2012 our clients realized over a 60% savings on the amount of debt they owed.
Remember, you will not pay for your credit repair program until the items have been removed from your credit report. This means you have no risk and if we do not remove or improve items on your credit report you will not pay a penny. So is there a down side or “catch” to this program? For some, this program may not be the best solution because of the amount of negative items on their credit report. If you have numerous collection accounts on your credit report, which are weighing down your credit score, you may be better off with our unlimited monthly program. Our monthly program will give you unlimited deletions for $79 a month, $99 for a couple, and you have a 100% money back guarantee.
For a Free Consultation and credit review call one of our Credit Consultants today. You can reach us at 1-877-497-2673 or email us at firstname.lastname@example.org
Need help from a Credit Expert but cannot afford to waste your time or money? Grand Rapids Credit Repair Company, Cambridge Credit Consultants, can help. We are credit experts and not like other credit repair companies.
We have helped hundreds of people just like you. Whether you want a 620 or 640 credit score to buy a home or a 580 credit score to purchase a car, we can help you fix your credit and raise your credit score.
Here is an example of someone who graduated from our program this past week. Scott was looking to buy a home but had some items from his past getting in his way. Does this sound familiar?
You can see in the responses from TransUnion that the tax liens were removed from the credit report as well as the collections were removed from the credit report. The FICO score jumped over 100 points by these items being removed.
It is true that not everyone will realize 100% success like Scott did. Our clients in the past 12 months have realized over 80% removal or correction rate on average. Take that success and add our 100% money bank guarantee and this makes us one of the best credit repair companies for consumers.
As a gift to you, click on the book icon for a free report on how to raise your credit score.
This ML rescinds changes announced in ML 2012-3 related to the following topics found in HUD Handbook 4155.1 and the FHA Total Mortgage Scorecard User Guide. This is effective 6-15-2012
FHA credit requirements will tighten once again on July 1 (moved from April 1 as previously posted), as announced in Mortgagee Letter 2012-3. Having a 620 score or even a 640 credit score may not be enough. Credit help, with a certified credit expert, may be imperative for anyone looking to obtain FHA financing.
There are two major developments that will affect your ability to obtain a mortgage, open collections and disputed tradelines.
Prior to April 1st – “FHA does not require that collection accounts be paid off as a condition of mortgage approval.” A low credit score or bad credit score was all that would stop you from financing a FHA loan. If you had a high enough credit score, most lenders would overlook the collections.
New collection guidelines- “If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing. If the total outstanding balance of all collection accounts is less than $1,000, the borrower is not required to pay off the collection accounts as a condition of mortgage approval”.
Prior to April 1st - “If the credit report reveals that the borrower is disputing any credit accounts or public records, the mortgage application must be referred to a DE underwriter for review”. For most lenders this was not an issue and your loan would be underwritten and closed.
New Guidelnes –Accounts must meet both of the following conditions:
- The total outstanding balance of all disputed credit accounts or collections must be less than $1,000, and
- Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit repor
“If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing. Disputed credit accounts or collections resulting from identity theft, credit card theft, or unauthorized use, etc., will be excluded from the $1,000 limit under the terms shown below. The mortgagee must provide in the case binder, a credit report or letter from the creditor, or other appropriate documentation, to support that the borrower filed an identity theft or police report to dispute the fraudulent charges.”
The good news, we can help. The bad news, there is no magic wand that make your credit challenges go away. We can help you remove collections from your credit report. What cannot be removed can be settled for less than what you owe. Regardless if you need a 620 credit score, 640 credit score or even a 660 credit score (another top 10 lender raised their requirements last week) we can help you get there. As one of the nation’s best credit repair companies we know what it takes to help you raise your credit score and fix your credit permanently.
Myth - If you pay off your credit card balances, your score will go up.
Fact – Paying your revolving accounts in full will not maximize your credit score, having a small balance will.
Many Credit Consultants and Credit Experts have published incorrect or misleading information when it comes to FHA Credit advice on credit card and revolving accounts. Given that 30% of your credit score is comprised of the amount you owe on your accounts, it is imperative to know the facts.
It is fairly common knowledge that paying down your credit cards will raise your credit score. The proportion of your revolving credit lines used is also known as your Debt to Limit Ratio. No, this is not an entirely true statement and we will explain. While you are reading this please remember that some of this may not make logical sense, but who said credit scores made sense? If they thought logically you would get points for paying cash and not being in debt, right?
Over the years we have we participated in over 500 Rapid Rescores. Rapid Rescoring is the process in which a lender updates an item on your credit report in an effort to raise your credit score. Here is an example: Monica has a $300 limit on her credit card and her balance is also $300, she has a 100% Debt to Limit Ratio. Her lender pulls a FICO score of 580 but needs 620 to approve her. The lender tells Monica to pay down her card to $45 and he will do a Rapid Rescore to raise her FICO score. Monica pays the card, gives proof to the lender and the lender submits the information to the Credit Report Provider. The Credit Provider submits the information to TransUnion, Equifax and Experian. In 3-5 days the updated information is reflected in her credit score and it rises approximately 50 points. This is obviously faster than the typical 30-60 days updates can sometimes take.
Here are some facts we uncovered in these rescores and would like to share. The following facts listed below have been confirmed by a minimum of 10 Rapid Rescores, each having a 100% success rate.
1) Managing your balances and paying down your accounts can result in over a 100 point increase
2) Having a zero balance on a revolving account will not give you as many points as a small balance. Make sure the balance is under 15% of the credit limit.
3) Having a balance between 1% and 15% of your credit limit will give you a higher credit score than being at 30% of your credit limit.
4) Department Store Cards have less positive impact than VISA and MasterCard accounts.
There are several more examples, but they are more specific to your particular credit profile or FICO Score Card. Knowledge is power, call today for a Free Credit Consultation.