Why Credit Reports have Flaws!
1. First, M, Last name
2. Current address
3. Previous address
4. Employer
5. Social Security number
6. DOB
7. Public Record (bk, liens, judgements, ect)
8. Credit History
First problem is, well think about when you are applying for credit? 90% of the time when you are applying for credit the cashier will offer 10% off is you apply for credit. Well the kid or cashier is not enforcing that you complete every field on the application. They are not trained financial consultants, they are just cashiers that are making min wage, that application is not being reviewed by anyone but it's being sent in directly to the lender who in turn sends it to the credit bureaus to find out if your are credit worthy to extend the credit. The bureaus should enforce that all fields be completed but they don't. They have come out with a mathematical algorithm that will determine or not whether that application is part of your credit history. It could be as simple as part of the information matching up could end up being added to your credit file.
Let's say your first name with 7 of the 9 numbers of your social security that might determine that is your credit file...The only way to override that is if there is an exact match.
Let's say John Smith applies for credit and his true social is 123.45.6789 but when he is completing the form he gets distracted or the cashiers inputs the incorrect number 123.45.6798...Now because his name is John (same as mine) and the social inputted was 123.45.6798 which is mine, that credit card will be applied to my credit file.
Now note that the credit bureaus have a software to prevent this happening called Metro2 in which a 3rd party could enforce that all of the fields be completed so that less errors would occur. BUT...the bureaus PROFIT from these inaccurate accounts. The average person has around 12 negative items on their report that equals about $2.50 per client that disputes their report. So there is no incentive to use the Metro2 system.
The FBI has stated the Identity Theft is the largest growing crime in America but on a recent survey, it was determined that 44% of Identity Theft cases are do to credit files being merged as stated above. Now this may not seem like a big deal but 10% of the credit bureaus profit came from the sale of Identity Theft Prevention. So think about it? They are selling you insurance to protect you against something that they are the main cause of. It's almost like credit extortion!
That's why there are so many flaws on your credit report?
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