Why Credit Bureaus Hate Credit Repair Companies?
After being in the real estate, finance and credit world since 1997, I have a long history when it comes to this question. One thing I do know for sure is: As a consumer you are NOT the customer when it relates to the major credit bureaus!! The companies they SELL your data to are the ONLY one’s they care about: (i.e., insurance companies, banks, etc.).
The ONLY reason credit bureaus even answer calls from consumers is because they were FORCED to due to the laws that have been implemented to protect consumers.
You have to understand, credit bureaus are data collectors. Their main objective is to harvest your data and put it on the market for data buyers to make a purchase. So, when you decide you want to “look into” the data on your file or even worse…”freeze” your file, they are losing money.
The information that creditors report on your credit file is ALSO revenue for the credit bureaus so, when you are working on your own or with a credit repair company to dispute these items…you are taking profits away from their bottom line. This is why they send stall tactic letters and often times, take their time to remove negative data from credit files. You and YOUR information equal a hefty payout for them and they want to protect their wealth at all costs.
Now, when it comes to credit repair companies, I would say 85% in the marketplace are working diligently to help their clients build a strong credit profile. It’s the other 15% that give the industry a bad name! The truth of the matter is, yes, you can repair your credit on your own but with most businesses, this same concept is true.
-We can cook for ourselves, but restaurants stay open.
-We can change our own oil, but Jiffy Lube stays packed.
-We can cut our own grass but having a landscaper for convenience works for many people!
There are plenty of things we can do on our own but the reason MOST businesses exist is because people either don’t want to or they simply just don’t have the time.
When you find a credit repair company that shares your goal to put you in a better financial position than when you first signed up, they are communicative, they provide results and they work hard on your behalf…you have found a great source that should be trusted.
The reason credit bureaus do not like credit repair companies is because their job is to alter their program.
They prefer that consumers remain blind when it comes to their credit. The more you stay in the dark, the more profitable you are to them.
Having good credit is a plus but there are MANY data buyers who are looking to purchase your BAD credit as well. Think about it…if I have a 750 credit score and you have a 620 credit score, who’s getting the higher interest rate? Banks, insurance companies, utility companies all make money on those hefty deposits and interest rates your subjected to because of your poor scores.
When a credit expert enters your life and guides you to the land of credit excellence, advises you to opt out of having your data sold, etc., that credit repair company becomes a thorn in the side of the credit bureaus. We were all taught that knowledge is power but you will notice the one thing that is left out of the education curriculum is how to manage your credit and debt! That’s because ignorance is oh so much more fruitful especially when it comes to your personal credit.
Look at it this way…
You ever wonder why it takes so long for your credit scores to increase but make ONE mistake (a 30 day late payment) for instance and watch how fast your score plummets! If the benefit for the bureaus was for consumers to all have 700 plus credit scores, they would work hard to make that happen. That is NOT the case! This is why they spend so much time, trying to block you from removing negative items, why their scoring algorithms are often changing, why they will keep you on hold forever when consumers call to “question” their files…and the list goes on.
With this in mind, they spend millions pushing the narrative that credit repair companies are bad or you shouldn’t pay for their services until they complete your file. Now, ask yourself this…if you have put yourself in a position to have bad credit (or life circumstances occurred) and now you owe thousands of dollars in debt, may even have a bankruptcy on your credit file and you are asking a professional to help you fix this problem so you can access more credit or whatever your goal is…would you trust someone to pay you 90 to 120 days later??!!
Just like you are trying to live and maintain your life, would that company that desires to help you not deserve to do the same? Of course they do BUT…the credit bureaus want credit repair companies out of business this is why they push the narrative of “don’t pay until they produce results” and then they work hard to block those results so you will believe you got scammed.
It’s a horrible, yet intentional game they play. Fortunately, there are many people in the industry who know how to beat the credit repair companies at their own game!! Not using games or unscrupulous tactics, but by simply leveraging the consumer laws in your favor!
The credit bureaus have been taking advantage of consumers for years (scamming). Reporting outdated, inaccurate information and so much more. If you are working with a company that has your best interest at heart, allow them to do their job or teach you how to do it for yourself.
You deserve to have a thriving and prosperous life and for many that opportunity begins with repairing your personal credit. It opens doors that poor credit will stop you from entering into. Having poor credit does not have to be a 7-10 year sentence. Remove that narrative from your thinking. Bad credit is fixable, you just need the right team on your side to show you how to do it yourself or to do it for you.
Don’t let the credit bureaus and their REAL customers win.
You deserve to live a great life and to pass on wealth to future generations.
Ofc: (202) 802-9900
The Credit Lady