Disputing Something Negative
Question: I was reviewing my credit report and I decided on disputing something negative. The result was that it was deleted however that same negative account is on the other two repositories. Will they tell the other two repositories and how long should long would one have to wait for the update.
Another good question about collections and how to handle them successfully. Disputing one account with one of the three repositories will not automatically correct it at the other two repositories. They don’t communicate, Equifax, Experian and TransUnion are individual companies. Even though consumers that may have been successful with one of the repositories doesn’t mean necessarily that they will be successful with that same account at the other two repositories. Consumers have to do the same process at all three of the repositories. They can not do it for one and hope that the other two pick it up.
That is not going to happen. Consumers have to take that original documentation and then provided it to the other two repositories.
The other repositories might have standards that are different than the first bureau. Consumers might be able to successfully remove it off one of the repositories and then not successfully remove it from the other two. Each individual repository is a separate database and they’ve got to address it that way.
About the FICO(r) Score, can you tell us more about that?
Yes, the FICO score is a credit score model developed by two guys one named William Fair and Earl Isaac, so that’s where
the Fair Isaac came from. Those two individuals last names and they shortened it to FICO. That’s the ticker symbol, you can buy shares on the stock exchange. FICO is a company that they started out of the garage with four hundred dollars and it’s grown into like up 900 million dollars a year business.
What FICO is trying to do is predict future behavior, One guy was a mathematician, the other guy was an engineer and they created these mathematical formulas in the fifties to try and predict people’s behavior. Not just their shopping or repayment behavior but all behavior. FICO was very early in that process with very basic kind of computing power. They were able to create this model which is strictly looking at consumers likelihood to repay.
If consumers know what FICO is looking at (past credit behavior) and trying to predict the likelihood that they will pay in the future, on future debt. FICO is not looking at their address, income, age, race, where they live or anything like that. FICO only looks at how have they paid in the past and how will they will pay in the future. I really think it’s a good model and it’s not trying to say this person is good this person that is bad. It is just ranking the order of risk for the lender
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