So, you're considering repairing your bad credit and restoring your credit score.  Maybe you're even going through the process right now but you're not getting results.  In order to be successful, let's start by understanding where credit scores come from. 

CREDIT SCORE FORMULAS – REVEALING THE SECRET SAUCE
     Perhaps one of the greatest mysteries in the financial world is how credit reporting agencies like Equifax, Experian and Trans Union calculate credit scores on consumer reports.  Each agency uses a different solution to do this, which in and of itself is troubling considering how much rests on that three digit number.  This explains why you have three different scores from three different agencies, and why sometimes it's possible to be denied credit from a lender who uses one agency as their source, and then get approved from another simply because your score with the agency THEY use is a little higher.  As a rule, they all use (or claim to use) the credit score calculating software offered by Fair Isaac Corporation (thus the acronym "FICO" score) but if that were the case, wouldn't your score be the same at all three major reporting agencies?  Not so fast.  You see the difference lies primarily in the fact that the contents of consumer credit reports differ – sometimes significantly – from agency to agency.  Positive trade lines may not appear on all three reports, and therefore result in a lower credit score assigned by each agency that lacks that positive information.  The same goes for negative information, which has the opposite effect on your score.  Still more relevant data such as who has requested your credit report recently will have an effect on your score, and the presence or absence of such information on your reports at the different agencies causes further discrepancies in your credit score.  THIS alone is a significant factor that makes it very difficult to analyze, reconcile, dispute and repair consumer credit reports. 

REPORTING SOURCES – THE "WILD WEST" OF ACCOUNTABILITY
     In terms of the need for regulation and accountability, the practice of providing consumer credit related data to credit reporting agencies is an absolute list-topper.  Nobody in their right mind would argue that the information provided to credit reporting agencies in order for them to properly assign credit scores should be anything but absolutely accurate, timely and relevant.  Unfortunately, like the gun laws of the wild west, there is very little enforcement.  A cursory check of just about any consumer credit report that has not undergone a serious audit will show numerous inconsistencies ranging from incorrect contact and prior residence information – to more serious problems like the reporting of negative trade lines that do not even belong to the consumer identified in that credit report.  Old accounts that are long paid-off can show as if they are still open with an outstanding balance.  Positive trade lines with a long history of prompt payments can show a gap in reporting that makes it unclear whether payment was actually made during those months.  Any number of errors and inconsistencies can be found as a result of the lack of adequate enforcement of the regulations governing those who supply the information to the credit reporting agencies.  And the net result of all of these inconsistencies is the assignment of credit scores that do not accurately represent the credit standing or credit risk of the consumer.

      So as you can see, there are serious concerns with respect to what information your credit scores are being based on, and whether or not all of the relevant information is even available to the credit reporting agencies as they make that all-important determination about your credit-worthiness.  At Mortgage Credit Experts we recommend that every consumer obtain their credit reports and find out what's contained in them.  You have the right to access your reports for free once each year, and can do so by visiting http://www/annualcreditreport.com