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Experian's Bluff

We've been receiving a lot of inquiries recently due to Experian's new response to disputes.

They have been replying with a letter that is worded in a legally threatening manner implying that disputing inaccuracies on your credit report or using a credit repair service is illegal and that the "authorities" may be involved.

Let me assure you this is a bluff. First, Experian refuses to let consumers purchase their FICO scores. Now they don't want to investigate inaccuracies on your credit report. The reason? People buy scores, not credit reports. When you see your score you're more inclined to dispute. That's their first strategy to stop your disputes. The letter is their second strategy. Its a scare tactic they hope will keep you from disputing again.

It is your right to dispute inaccuracies according to the Fair Credit Reporting Act. Furthermore, it is LEGAL to hire a credit repair service to dispute for you. The Credit Repair Organizations Act was implemented to protect you from credit repair scams. If credit repair was illegal, the government wouldn't have created an Act to dictate the rules a credit repair service must adhere to.

How to Boost Your Credit Score Without Credit Repair

Removing negative items from your credit report is one technique for improving your credit score, but it's not the only technique in my tool box. I created this free video to teach you another little known insider strategy you can implement immediately to boost your score as much as 150 points in as little as 45 days.

I have used it on with many clients and have always seen fantastic results.

WARNING: Watch the entire video before taking any action. You need to understand how the strategy works before you can make a decision as to whether or not its right for you.

FICO Reveals 'Damage Points'

For the first time ever, FICO has revealed how much certain derogatory remarks can negatively effect your credit score. Conversely, we now have a more accurate idea of how much removing these items can positively effect your score.

As you can see from the chart, a maxed out credit card can effect your score as little as 10 points, while a recent bankruptcy can decrease your score by as much as 240 points.  Its also interesting to note that the better your FICO score is when the negative remark is added, the more of an effect that remark will have on your score. 

FICO determined how your score would be effected by using complex mathematical algorithms compiled by tracking hundreds of thousands of consumers over a period of years. Over time they were able to determine key indicators that revealed the increasing probability that a consumer would default 90 days or more on a loan or credit.

This chart helps to illustrate how a consumer who had an otherwise flawless credit history can suddenly become a high risk borrower after a recent negative event in their credit history, while those with lower scores are more likely to be habitually poor at budgeting or making timely payments. The sudden change in behavior is a warning sign and therefore caries a higher penalty.

Credit Repair Advice - Your Questions Answered

You have questions.  I have answers. 

Rules: Those who comment get their questions answered first.

Q: What am I Doing wrong? 
I just paid off a $1200 collection that has been on my credit for 5 years.  I plan on paying down two more cards this Thursday that are over their limits.  The only other negative item on my report is my truck which has a number of late payments reporting. Everything else is either 0 balance or paid in full.  Please let me know your thoughts. - Shane

A:  Without looking at your credit report, here's my best advice.
When paying off collections you can negotiate the terms.  If you pay in full you may be able to get the item removed from your credit report all together.  If you settle for less than the full amount, you may be able to negotiate a "paid in full" remark.  Still, paying it off is better than having it open.

You're plan to pay down the debt is solid.  Stick with it.

Regarding the late payments on the truck, I would ask the lender to remove the worst offense.  If you have 30's and 60's reporting, ask them to remove the 60.  As long as you're communicating with them and you've been making timely payments since your late, many will work with you. 

If they resist, ask for a detailed payment history.  See if they're reporting the late dates accurately.  You'd be surprised how often they make mistakes.

If I had your credit I'd look into your debt ratio, inquiries, ratio of credit cards to loans, etc.

Did I miss anything?

Post your comments below.

Best,

Brian Diez

PS: Discover how to get a 700+ credit score.

PPS: Just click here for your FREE cd, FREE ebook, and FREE coaching call with me!

Experian Refuses to Cooperate With FICO

Bad news. Effective February 14th, Experian will no longer allow consumers to view their FICO® scores based upon Experian data.

The good news is FICO® scores from Equifax and TransUnion will continue to be available on myFICO.com.

It is important to understand that a majority of lenders will continue to use Experian-based FICO® scores to make decisions about credit worthiness, yet these scores will not be available to consumers except for those enrolled in select Fair Isaac Scores on Statements® programs.

To obtain your credit report with all 3 FICO scores, please visit myFICO.com. The inquiry will not negatively effect your credit score.

I strongly encourage you to get yours now and schedule your free credit review.

Do you think it's fair that Experian won't let you see your FICO score?

Post your comments below.

Best,

Brian Diez

PS: Discover how to get a 700+ credit score.

PPS: Just click here for your FREE cd, FREE ebook, and FREE coaching call with me!