Jordan FeRoss asked:


If you are a consumer with credit issues, you will need to look into credit repair to correct those issues. A credit repair services company specializes in correcting items on your credit report that should not be there. There are many places that do this type of work, so you have your cream of the crop.

You will find advertisements for credit repair services all over the place. However, there are some that are not reputable. They will look out for their bottom dollar instead of looking out for the consumer. If you need a company to help you with credit repair issues, make sure to check them out first. A good resource to use is the Better Business Bureau. You can also do this online as the BBB has a website where you can inquire about different companies.

A credit repair services company works as deal breaker between you and the credit bureaus. There are consumers that may have items on their credit report that they wish to dispute. There are a few scenarios in that they may feel it’s too much for them to do or made previous attempts that did not pan out for them. Nevertheless, consumers still need credit repair assistance to get this resolved.

Enlisting the services of a credit repair services company can help you to get the assistance that you need. They can act as a middleman to get the credit repair assistance that you need. The company will contact the major credit bureaus on your behalf to get things straightened out. Your credit report will be checked to see what errors need to be corrected or removed from the report altogether.

The consumer has to pay a fee to the credit repair services company in order for them to do the work they need to do. The fee that you pay will used to retrieve your credit profile and get in touch with the credit bureaus to get rid of the information that doesn’t need to be there. Credit repair can be a time consuming process, but once everything has been corrected, then you look for your credit scores to rise. However, consumers must keep in mind that this is not an overnight process.

Credit repair is an ongoing process, and credit repair companies must stay on the course in order to get the results you need. Your credit report will eventually be free from errors and your credit score will go up. However, you as a consumer cannot let your guard down. There may be times where erroneous information that will still pop up on your credit report by no fault of your own.

Consumers must keep in mind that credit repair does not include removing correct items from your report, even if it is derogatory. It is against the law for companies that specialize in credit repair service to do that. Also, they are not allowed to retrieve your credit report for you. That is the job of the consumer. The important thing to remember about this process is that it is not an overnight fix.

Stephen Campbell asked:


Numbers of credit reporting bureaus or agencies gather information on the subject of the debtor’s credit history or files from reliable private and public credit data sources. They also get data from the creditors who extended the loan to the debtor.

Accordingly, the information is divided into five sets or categories with the corresponding percentages which reflect the significance of each category in the final computation of scores for your credit card debt, namely: (1) Owed Amount–30%; (2) History of Payments–30%; (3) Duration of Credit Record–15%; (4) Nature or Kinds of Credit Currently in Use–10%; and lastly (5) Latest Credit Inquiries –10%.

In general, these credit bureaus compute the debtor’s credit score using a three figure number which range from 300 up to 850. The higher the credit score, the better opportunity of acquiring low interest rates for the loan being applied for and a better opening for wealth accumulation.

The industry of credit-scoring has been making different opinions and wide-spread reactions to the public. The consumers fear that credit-based rating or scoring will pose a negative impact or unjust rating to them and will affect their economic standing and other monetary transactions.

Some credit bureaus justify their reason of gathering information and making credit rating or scoring. For them, their work is to help lending businesses formulate efficient and effective economic decisions.

Others create a distinction between the credit-based scores of insurance companies which predicts the loss of propensity and the credit scores which is just to predict the worthiness of a particular person to pay.

Each of different companies should develop its own credit-base rating or scoring algorithm to serve better the consumers. Below are some of the techniques adopted in credit scoring:

– Forming a Credit Assistance Group/Team–they are the quick response team that will give assistance to consumers calling through toll-free numbers. The public would certainly like to know the effect of credit records or rating to their application of loans, mortgage, employment and/or insurance transactions.

Also included to the team’s responsibility is the making of reports on the personal credit insurance of the consumers or client. This report will show the consumer’s variable score and the comparison with the aggregate rating or score

–Revising a New Method in Credit Scoring- this simplified way utilizes nine variables instead of the usual sixteen. Their algorithm will calculate the credit scores by assigning 100 as a foundation score.

–For those consumers with no credit records or whose credit histories are lacking, they will establish a program which will particularly cater to these groups of creditors to somehow uplift their credit ratings.