A "Credit Bureau" is a private company that compiles and stores records on the credit history and payment habits of millions of individual citizens. They generate profits in the billions of dollars by selling these records to mortgage and other lenders.

The Credit Bureaus are not government organizations and have no legal authority.  But they nevertheless have enormous power and influence over the lives of individual Americans!

There are three major credit bureaus in the US. They are:

Experian
Equifax
TransUnion

By amassing information from public records, lenders, debt collectors and the court system, credit bureaus assemble information on the individual consumer into a file called a "Credit Report."

Your credit report holds information on your accounts with mortgage and car loan lenders, merchant lenders and credit card companies.

It also holds public records such as repossessions, court judgments, liens, foreclosures and bankruptcy.

Now when a potential lender is considering a loan application he will contact one (or more) of the credit bureaus and purchase a copy of the applicant's credit report.  Based on the information in the credit report and "Credit Score" the lender will decide whether the borrower is a good risk or a poor one.

After reviewing the credit report the lender decide whether or not to grant the loan. If the borrower is granted a loan, the credit report and score will determine what interest rate he will have to pay.

Based on the information in your credit report, each credit Bureau will assign you a "Credit Score" a 3 digit number meant to show your credit worthiness. A higher score means better credit.

Below is an evaluation of credit scores.

Below 585                   Very poor
585 - 669                     Poor
670 - 699                     Fair
700 - 729                     Good
Above 730                   Excellent

The bureaus determine the credit score differently than one another, and so your credit score will be different based on the credit Bureau reporting it. But they are likely to be in the "ballpark".

Click here to get your credit report and score.

In calculating your credit score the credit bureaus will consider five basic factors in various degrees, roughly as follows;

Payment History  35%

Have your bills been paid on time? 
Have you paid your bills late? 
How late have they been?
How frequent are the late payments?
Have accounts been turned over to collection agencies?
How many accounts are in collection?
Are there repossessions on your credit report?
Have you ever been in bankruptcy?

 Current Level of Debt  30%
What is the total amount you owe?

How Long is Your Credit History 15%

How many years have you carried debt? Lenders would rather see a longer history (of accounts paid on time) instead of a short one

Types of Credit  10%

There are primarily two types of accounts, "revolving" and "installment".

Mortgage and car loans are of the installment types. You pay a predetermined amount at regular intervals.

Revolving accounts (like credit card accounts) are more flexible and are not paid in predetermined amounts, but they often do require a minimum payment.

Pursuit of New Credit  10%

Are there are many recent "inquiries" on your credit report (lenders requesting a copy of your report)?

Credit bureaus keep records on millions of Americans, so it's no surprise if a few mistakes creep into credit reports. But sadly there are more than a few mistakes. In fact, it's estimated that anywhere from a third to an appalling 90% of all credit reports have mistakes.

Let's put that another way - even using very low figures there's a 1 out of 3 chance that your credit report is not accurate!

Considering how important your credit score is these are NOT very good odds - and that's looking at the LOWEST estimate!

And how many mistakes does it take to hurt your credit score?

............ Only one ............

Now one would think that when it comes to something as important as your credit ... something that affects your life to such a degree ... that the credit bureaus would make more of an effort to report accurately.

Are you thinking right now "there ought to be a law"? ...

Fortunately there is! The United States Congress passed one to address the problem ... the Fair Credit Reporting Act, or FCRA.

Under the FCRA consumers have the right to challenge the accuracy of information in their credit report. And when you contact one of the credit bureaus to dispute such information they have 30 days under the law to investigate. If during those 30 days they cannot or do not verify the accuracy of the information, they are required to remove it.

Even though the FCRA is a good law, there's still a problem.

From the perspective of the credit bureaus this law is a nuisance. There's nothing in it for them except lost time, money, and productivity.

And so to make it more difficult for the consumer they put roadblocks in the way.  There's a "loophole" in the FCRA that the credit bureaus often use, the "frivolous" issue. That is, if a dispute is "frivolous" the credit bureau is not required to investigate. And the worst part is that it's the bureaus themselves who initially decide if a dispute is frivolous.

Talk about putting the fox in charge of the henhouse!

Needless to say the bureaus will often label a challenge frivolous even though it is not. Now of course you can challenge them in court if you have the money, but most people aren't wealthy enough to hire the high priced lawyers the credit bureaus can ... especially those who are paying outlandish interest rates because of mistakes on their credit report!

We're familiar with the "roadblocks" the credit bureaus use to frustrate consumers and obstruct their efforts to remove erroneous information from their credit report. Utilizing your rights under the Fair Credit Reporting Act we aid you in challenging the correctness of information on your report to remove items that could be negatively impacting your credit score.

We know how to deal with the credit bureaus and get results!!

Although the credit bureaus would rather you don't seek help in challenging the correctness of your credit report, don't ever let them convince you it's illegal to do so. It most definitely is NOT!

Another trick they employ is to reply to your dispute and tell you that using help is wasting your money, and that credit repair companies are all crooks! And while it's true that some are, the bureau's intent is NOT to protect you ... it's to protect credit bureau profits by making it harder for the consumer!

Under the FCRA every American has the right to dispute - on his own - information on his credit report. But likewise, everyone also has the right to prepare his own tax return, and yet many people would rather hire an accountant to do their taxes rather than try to navigate the complexities of the tax code.

By allowing a professional to take care of your credit you stand the best hope of credit score improvement ... and getting back the good credit you deserve!

Results will vary widely, but in most every case there will be major improvement.

And bear in mind!

Nobody can guarantee your credit score will improve, at least no one who is the least bit honest. And No HONEST company will.

Everyone's situation varies. But in most cases there will be major improvement to one's credit report and credit score ... improvement that will make it possible for the client to get a mortgage, car loan, or a credit card ... and at a far more favorable interest rate.

Don't forget - depending on your situation just ONE error on your credit report could mean a difference in your credit score - and in whether or not you can buy a home.

It will depend on your own circumstances. Your credit history resulted over a span of many years, and it's not realistic to expect clean credit overnight.

Nevertheless, in some cases there will be major improvement in just a little over a month. Other times it takes longer. Very rarely it can take a year or more.

But most of the time you should see major improvement in your credit in 4 - 8 months time.