Credit Repair Tutorial - Chapter 1: Introduction
Credit repair is one of the most sought after skills in the credit industry. The ability to repair a poor credit score can have a significant positive impact on a person’s life and change their bottom line. Our academic will discover among the methods you could optimize your rankings and make your credit score appearance as appealing as feasible to potential creditors, employers, insurers, landlords – and you!
Our Credit Repair Tutorial
The process of credit repair can be daunting and confusing. This tutorial is designed to help you understand how credit repair works. We will explain the different types of information contained in your reports and what you can do about negative items. Once we learn more about the items on your credit report, you will learn how best to dispute them with the credit bureaus. Your credit matters. You can do something about it. We hope that you will be inspired to take action today.
Credit Repair Benefits
The Math is Simple
Your credit will govern the cost of all dollar you acquire. The arithmetic is plain. The larger your credit scores the lower your interest rates. Let’s check out at a few of the potential fiscal benefits of credit repair.
Every Point Matters
- Here are the potential effects of a 100 point improvement in your credit scores. The following figures are from Fail
Isaac Corporation and based on national averages. - If you have a $300,000 mortgage, a 100 point improvement in your scores will save you $264 per month.
- If you have a $25,000 automobile loan, a 100 point improvement in your scores will save you $65 per month.
- Together your combined monthly savings equals $329.
Let’s Multiply
If you were to invest your $329 monthly savings into an account earning 5% per year for the next ten years you would accumulate $51,000. And over 20 years it would grow to $135,000.
And There’s More
The real financial benefits of credit repair go well beyond your mortgage and auto loan to include your credit cards and other consumer debt, not to mention the potential impact on employment and insurance. It adds up. Are you ready to learn more?
The Three Major Credit Bureaus
The Big Three
There are Experian, Equifax, and TransUnion, the three main credit bureaus. These three credit behemoths did not always rule the market. There were more than a dozen well-known credit bureaus that provided information to lenders twenty years ago. Some companies operated on a global scale, while others focused on gathering and selling local data. The current three-bureau environment is the result of a merger and regular market evolution. Despite the big three’s market dominance, there are other credit bureaus; we will discuss some of them in the following section of our credit repair tutorial.
The Business of Credit
The credit bureaus are not governmental organizations. They operate as for-profit enterprises. In general, they gather, manage, organize, package, market, and sell credit data. Prospective lenders who use the information to underwrite loans are their main clients. Data from credit bureaus is frequently used in marketing. And the consumer market has expanded significantly over the past ten years as consumers have become more conscious of the value of credit.
The Credit Repair Perspective
The credit bureaus are not your adversary when trying to repair your credit. Simply put, they are a component of the world we inhabit. Each of them does a respectable job of managing information on more than 200 million Americans. Working within the system is part of our responsibility as a credit repair business to resolve customer issues as quickly as we can.
Which Credit Report is Best?