7 True Lies About The Credit Reporting Industry
You Must Know If You Need Financing and Have Bad Credit.
First off, make no mistake…
The “big three” credit bureaus (Trans Union, Experian, and Equifax) do
NOT want you to read this special ‘underground’ expose about them.
Why? Because the credit bureaus and the banking institutions, desperately need consumers to accept and
believe several untruths about the credit reporting system.
Unfortunately for consumers, not knowing what’s ‘really going on’ can cost you tens or even hundreds of
thousands of dollars during your lifetime.
This special report will reveal the truth to you about how the credit bureaus operate. More importantly it
will also reveal what you are really up against if you have credit problems.
True Lie Number 1:
The credit bureaus maintain accurate records regarding the financial responsibility
of every adult citizen.
This is PURE FICTION! The average credit report is inundated with damaging errors. Did you know it’s
estimated that a whopping 43% of all Americans have erroneous information in their credit history.
True Lie Number 2:
Your credit report is ‘CAREFULLY’ analyzed by lenders when you apply for
This as once true, but not today. In the 1960’s when you applied for financing a bookkeeper in a dusty
back room requested a credit report from your ‘local credit bureau.’ In fact, in those innocent early days
ALL credit bureaus were local!
He would then review every aspect of your credit report line by line. If there was a problem, you might be
telephoned or called in for an explanation.
Or, you might even be asked for a personal pledge attesting to your responsible intentions. Then a
decision would be rendered, usually, but not always, in your favor.
An amazing system with a very personal touch. Unfortunately, the innocence and simplicity of that era
expired long ago.
Why? Because there’s a major flaw inherent with this method of making credit decisions. It’s time
consuming. Manual analysis of a consumer credit report is a tedious process. Time costs money. It also
requires skilled human beings to render good judgment.
Unfortunately for you, the consumer, this model of doing business is not cost effective. Not for large and
greedy commercial banks.
Their goals are simple. To extend credit to millions of people while minimizing their risk in the process.
With trillions of dollars in profits at stake in the capital lending markets time is of the essence.
Ultimately technological automation was the answer to the need for speed.
With the advent of the FICO
scoring system, credit making decisions have changed radically. In essence, a computer looks at your
Then it calculates a number (your FICO Score) in a nanosecond. This 3-digit number can make a or break
a lending decision
True Lie Number 3:
Adding a 100-word consumer credit explanation statement will increase your
chances of getting approved for financing.
Once again, in the early 1970s when the Fair Credit Reporting Act first gave Americans the right to
include such statements on their reports, life was different.
Prospective creditors actually reviewed consumer files with authentic human eyeballs. So in those
unhurried days, a comment placed in the report by the consumer might have made a difference at
Today the 100-word statement can only serve to harm the consumer. First, these personal statements are
almost never read by potential creditors. There’s no need. Your FICO Score determines if you get
Second, those statements only serve to make your situation worse. Why? Because let’s say a lender does
take a peek at what you wrote. The statement only confirms the negative information already on your
For example, let’s say a consumer attaches a statement that reads something like this: “These payments
were made late only because I was suddenly laid off (or sick), but that unfortunate situation changed very
quickly, and we have never been late with this or any other account since.”
That may sound responsible, but unfortunately here’s what it states in reality: “Yes I really was late
paying my bills.”
“Plus, I’m not intelligent enough to have an emergency fund to cover basic minimum payments if
something goes wrong financially. Therefore, I am a bad credit risk.”
Extenuating health or employment circumstances are simply viewed as excuses. They can serve only one
To demonstrate irresponsibility… Period!
True Lie Number 4:
Negative information must remain a part of your credit history for 7 years.
This statement is a flat out lie. Even so, anytime you call your creditors to challenge information in your
credit report that’s what they will tell you. “Sorry, by law all negative information must remain on your
credit report for seven years.”
The next time you hear that, know this: The customer service representative is not being honest with you.
Sure, the credit bureaus want you to believe this lie also. They’ve based their entire business model upon
reporting derogatory information to their subscribers.
Here’s the truth: The credit bureaus are NOT required to report any information about you for any
minimum length of time.
True Lie Number 5:
You can’t repair bad credit without the assistance of a credit repair agency.
Once again, this is false. Here at my law firm we repair bad credit. We’ve helped literally thousands
and thousands of people over the years.
But the fact of the matter is that YOU CAN repair your
credit. You don’t need assistance from anyone.
All you need is the correct strategy and the right tools. Once you know what to do it’s very easy to
repair your credit history. I know this for a fact. I’ve been in the business for over 28 years.
True Lie Number 6:
It’s illegal to start a new credit file.
Back in the early 1990’s a group of west coast attorneys came up with a unique concept. Why not start
a new credit file to use in place of your damaged one?
The new file would be created by applying for an Employment Identification Number. The EIN would
be used in place of the person’s social security number, when applying for credit.
At first, the idea actually worked. Almost if by magic, people were suddenly free of the burden of bad
credit virtually overnight.
However, the FTC soon ruled that the practice was fraudulent and deemed it illegal. So, the question
remains. Is there a way to legally create a new credit file?
Fortunately, there is, and the good news is that it’s 100% legal. The practice involves creating business
or “Corporate Credit.” Wealthy real estate investors and business owners create new business credit
files all the time.
Many aren’t even aware that a business credit report is being maintained on them. The full details of
creating corporate credit are beyond the scope of this report.
However, if you are interested, I’ve included a step-by-step course as a bonus, when you secure a
copy of The Attorney’s Guide To Credit. It will provide you with everything you need to create a brand
new credit file starting from scratch.
True Lie Number 7: Repairing your credit report is illegal.
Such statements are the most insidious of all. In fact, this is the very same psychology a criminal predator
uses with his victim: “I’m taking advantage of you, but follow my rules.
Do not defy me or you will pay
serious consequences. If you do attempt to repair your credit you’ll only suffer more damage in the long
run. Keep to yourself.
Remember that can tell lies about you if I wish. And if you have any problem with any of this, speak only
to me about it.” These facts cut straight to our constitutional citizenship: All of us have a fundamental
right to defend ourselves.
Whenever we are accused of anything, whether that accusation appears in the newspaper, on a rap sheet,
on a credit report, or anywhere else, we are guaranteed the right to prove our own innocence against such
Lies About The Credit Reporting Industry, USA Credit Score