5 Things You Don’t Know About Credit Bureaus

Every American adult knows about the three leading credit bureaus: Equifax, Experian, and TransUnion.

But not everybody fully understands how these bureaus actually function. Even though credit reporting has been around for nearly a century, the general public is still relatively uninformed about it. As a new and inexperienced credit repair consultant, understanding the credit bureaus is the most important thing for you since you’ll be interacting with them quite often.

You can tackle them better if you know the following important things about them.

1. How They Get Their Information

Credit bureaus have data furnishers to thank for their sourcing of information. These data furnishers can include lenders, banks, and debt collection agencies. The furnishers share people’s credit-related information to credit bureaus under legal regulations. They also work with the bureau of their choice, which means that all three bureaus can have different data furnishers.

2. Who They Sell Data To

All three credit bureaus make a large percentage of their revenues by selling their customers’ information and data. Of course, there are federal and state laws under the FCRA that regulate who this information is sold to. The bureaus are legally required to only sell data under “permissible purposes” i.e. legitimate reasons. Lenders, employers, and insurance companies are typically the only ones to fulfill this requirement.

As a credit repair consultant, you can let your customers know that they can choose to opt-out of bureaus selling their information for marketing purposes.

3. They May Report Differently

The credit bureaus don’t interact with each other since they’re competitors in the industry. When they don’t share and compare information, they don’t report the same either. So, as a credit repair consultant, you might identify errors in a customer’s credit report from one bureau and not in the others. In essence, the three reports you’ll acquire won’t be identical.

4. You Need to Dispute with Them Separately

Many new credit repair consultants fail to realize that all three credit bureaus are separate entities. Even if you find the same error on all three of a customer’s credit reports, you still need to dispute all of them separately with each respective bureau. Each bureau conducts its specific investigation into your claims and then decides accordingly. This also means that the results of your disputes with each bureau might differ too.

Are you already running or starting your own credit repair business? Let MC-Credit Solutions LLC Company guide you through it!

The team of credit repair software experts at our company is dedicated to helping credit repair businesses grow. We offer credit repair training courses, credit repair certification classes, and even a credit repair software called the Client Dispute Manager. The training classes are hosted by credit repair software and business expert Mark Clayborne. He can help you gain the industry knowledge you’ve been looking for.

Our software can also help streamline all of your business operations in no time. Try it for free today!

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