Yes, it’s true! The credit bureaus are making dividends everyday from the mistakes on your credit report! It’s a well known fact that over 90% of credit reports contain inaccuracies. You would think with today’s technology that these millions of errors could be fixed, right? Ok, so how do they make money from these errors? To begin with, everyone has heard of “online credit monitoring” in today’s era. The Big 3 (Equifax, Transunion, Experian) own the most popular online credit monitoring services which consist of www.equifax.com, www.truecredit.com and of course you have Experian with their ever so goofy commercials to www.freecreditreport.com.
If you know that your bills have always been paid on time, you have no credit card debt and you’ve never heard the answer no after a loan application, how would the Big 3 capture your business? Let’s think outside the box now. If your credit report could get mixed with someone else’s (this means that someone else’s bad credit ends up on your report) credit report from simply having a similar name, being a junior/senior or having only 5 of the same digits in your social security number while living on a similar street, that leaves you vulnerable to having a bad and dubious credit report!
Now with the fear in mind that you could get turned down when applying for an unsecured business loan, asked for a high down payment, pay an extraordinary rate or even pay a higher premium for insurance policies, $9.99 – $29.99 per month to monitor your credit reports and catch errors doesn’t sound that bad! It is my opinion as an experienced credit specialist in credit repair, that The Big 3 want to keep these errors at an ever higher rate and plant fear in everyone’s mind so that they can obtain as many monthly online credit monitoring subscriptions as possible!
According to a U.S. Census report from July 2009, the U.S. population is estimated at 307,006,550. Another statistic by Transunion states that only 35% of Americans have a good FICO score above 700. With that said, over 100,000,000 American citizens would never need online credit monitoring services without the fear of mistakes on their reports! That means The Big 3 have gone after an estimated 1.5 Billion Dollars that would have never been touched!
I truly believe that profit is not a dirty word! If we didn’t have businesses and profit didn’t exist, nobody would have a paycheck to deposit in the bank! At this point though, I truly believe the credit bureaus have gone too far!
It would take an entire book to share all the dirty secrets I have learned over the years! Stay tuned for more information in our future posts.