A "Credit Bureau" (also called a "Credit Repository" is a private company that gathers and stores records on the credit history and payment habits of millions of people. They generate billions in profits by selling these records to mortgage and other lenders.

The Credit Bureaus have no legal authority as they are in no way affiliated with the US government.  But they nevertheless have enormous power and influence over the lives of individual Americans!

There are three major credit bureaus in the United States. They are:

TransUnion
Equifax
Experian

 The credit bureaus gather information from lenders, debt collectors, public records and the court system. They put together this information on individual consumers into a file called a "Credit Report."

Your credit report includes information on your open and closed accounts with mortgage lenders, auto loan lenders, credit card companies, and merchant lenders.

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

Now when a lender is evaluating someone for a loan he will contact one (or more) of the credit bureaus and buy a copy of the credit report for that applicant.  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.

Each credit Bureau assigns you a 3 digit number based on the data in your credit report. This is called your "Credit Score" and it is meant to show your credit worthiness. The higher your score is, the better your credit.

This table will give you some idea of what constitutes a good or a bad score.

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

Each Bureau uses a different mathematical model in determining your score, and so your credit score will vary depending on which Bureau is reporting it. But they are likely to be not for apart.

To get your credit score and credit report right now:

In calculating your credit score five basic factors are considered in varying degrees, approximately as follows;

Payment History  35%

Have you made timely payments on your bills? 
Have there been late payments? 
Just how late?
How often have payments been late?
Have accounts been turned over to collection agencies?
How many?
Are there repossessions on your credit report?
Have you ever been in bankruptcy?

 Current Level of Debt  30%
What is the total of all your current debts?

Length of Credit History 15%

How many years have you carried debt? Lenders like to see a long history (of accounts paid on time) and not a short one

Types of Credit 10%

Most accounts are either "revolving" or "installment" accounts.

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

Credit card accounts are revolving accounts. You have flexibility as to how much you pay each time, but they often do require a minimum payment.

It's best to have a "healthy mixture" of both kinds..

Pursuit of New Credit 10%

Have there been lots of recent "inquiries" (potential lenders buying your credit report)?

Lenders would rather not see too many recent inquiries. It could mean that the consumer is in danger of "getting in over his head".

Credit bureaus keep records on millions of citizens, so it should come as no shock that there will be a few mistakes. But unfortunately, the mistakes number more than a few. In fact, it's estimated that anywhere from a third to a staggering 90% of all credit reports have mistakes.

Let's say it in different words - at a very minimum there's a 1 out of 3 chance that your credit report has errors!

Now considering the importance of your credit score those are NOT very good odds - and that's looking at the LOWEST estimate!

And how many mistakes does it take to negatively impact your credit score

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

Now a person would think that regarding something as critical as your credit ... something that affects your life to such a degree ... that there would be a greater effort to "get it right".

You may be thinking "Well, 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 everyone has the right to challenge the accuracy of information in their credit report. When you dispute information with the credit bureaus, by law they have 30 days to investigate your dispute. If during those 30 days they cannot or do not verify the accuracy of the information, by law they must remove it.

That's wonderful news for consumers. But there's a problem.

Looking at it from the credit bureaus' point of view the FCRA is a "thorn in the side." There's nothing in it for them except lost time, money, and productivity.

And for that reason they don't go out of their way to make it any easier for consumers.  They know how to utilize a "loophole" in the FCRA, the "frivolous" issue. If the credit bureaus deem a dispute "frivolous" they don't have to dispute it. And who initially decides if the dispute is frivolous? Why, the credit bureaus!.

Know there's a case of putting the fox in charge of the henhouse!

Needless to say the bureaus are quick to label disputes as frivolous even if they are not. And although the consumer can always take them to court if they can afford to, most people just can't afford to hire the high priced lawyers the credit bureaus can ... especially those who are paying exorbitant interest rates because of mistakes on their credit report!

We're adept at dealing with the "roadblocks" the credit bureaus use to confound 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 delete accounts that could be negatively impacting your credit score.

Although the credit bureaus would like to discourage you from seeking 3rd party help in disputing information on your credit report, don't ever let them convince you that it's in any way illegal to do so. It definitely is NOT!

Another trick they'll sometimes use 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, what the bureaus are really trying to do is NOT to protect consumers ... it's to protect credit bureau profits by making it more difficult for consumers!

Under the FCRA everyone has the right to challenge - 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 a professional accountant due to the difficulty of navigating the complexities of the tax code.

When you put your credit in the hands of a professional you stand the best hope of helping your credit score ... and getting back the good credit you deserve!

Results are going to vary, but in most every case there is going to be major improvement.

And make note!

No one can assure improvement in your credit score. And no REPUTABLE 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 enable the client to get a mortgage, credit card, or car loan ... and at a far lower rate of interest.

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

It will depend on your own circumstances. It took many years to form your current credit history, and it's just not realistic to expect excellent credit overnight.

Nevertheless, sometimes you'll see major improvement in just a little more than a month. Other times it takes longer. And in a very few cases it can take up to a year or more.

But in most cases there should be substantial improvement in your credit in 4 - 8 months time.