What entities dictate your Credit Score, and are they somehow tied to the government?
The “Big 3″, as they are often called, Equifax, Experian, and TranUnion, are the major consumer reporting agencies in the USA. Though your credit score is intertwined with nearly every aspect of your life, the government is not involved and has no authority or input on determining your credit score. These agencies use an algorithm based primarily on 5 factors to calculate your FICO/credit score (Fair Isaac Corporation). To be clear, your FICO score is used by creditors to determine the risk they are taking to lend you money. Simply put, the higher the score the lower their risk. Your score is comprised of and weighted in accordance with the following percentages: Payment History 35%, Amounts Owed 30%, Length of Credit History 15%, New Credit 10%, Types of Credit Used.
How is credit score determined?
In short, there are 5 factors:
1. Payment History (35%)
2. How Much is Owed (30%)
3. Length of Credit History (15%)
4. New Credit Applications (10%)
5. Types of Credit Used (10%)
Click this link for a more detailed explanation.
What, if any, are the legal repercussions of fighting the bureaus?
There are none! You have the right and authority to challenge any information on your credit profile. Accelerate Credit Repair takes advantage of the legal system and is able to challenge the negative items, on your behalf, with the bureaus. Our attorneys require that every item that is disputed be verified by the bureaus and that each item undergoes an extensive checklist concerning the accuracy of the derogatory information.
Do you advise to dispute all information in your credit report, regardless of accuracy?
No. We only advise you to dispute questionable negative items. You have the right to dispute questionable negative items and any credit information you feel to be inaccurate, incomplete, unverifiable, or obsolete.
Why are there so many errors on my credit report?
It would be fair to assume that since the bureaus not only collect your personal information but sell it as well, that they would do a stellar job at ensuring that everything is current and accurate. However, that is not always the case. The cost and resources needed to investigate every consumers’ individual credit report is not a priority of the credit reporting agencies. As a result, you as the consumer is responsible to determine the accuracy of your information.