How The Credit Reporting System Works
The credit reporting system is a business relationship between two parties: 1) independent agencies that collect credit information called credit bureaus; and 2) merchants who pay for a copy of this credit information on an as-needed basis. Credit bureaus refer to these merchants who pay a fee for their service as subscribers. As with any business, the main focus of the bureaus is to meet the needs of their customers, the merchant subscribers (not you).
When you apply for credit with a local merchant, the merchant turns to a credit bureau to obtain a copy of your “credit reputation” to help him evaluate the risks in extending credit to you. The bureau doesn't actually approve or deny your credit, but rather supplies the merchant with your payment history as reported by other subscribers with whom you have received credit. However, the bureau will use a closely guarded secret formula to assign a credit score to each individual based on the information in the file. This information is the most significant factor in the merchant's decision regarding your “ability and willingness” to meet your future financial obligations. The merchant is counting on the credit bureau's information to serve as a filter to help separate good credit risks from poor risks.
The shortfall of this system is that the product, you, has little clout in this relationship. The merchant's primary motivation is to avoid bad credit risks, and the bureau makes a profit by charging the merchant for helping him do that. The consumer has no positive financial impact on the bureau. Thus, while you are out of the loop, you are surrounded by it.
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CREDIT RESOURCE REVIEW
 Consumers facing credit challenges must consider this easy-to-follow interactive resource. We cannot say enough about the Fresh Start product. Overall, it is the best resource we've seen. It walks you step-by-step through each of the remedies available to you to remove negative credit from your credit history. Great tips on analyzing your credit report, disputing bad marks with credit bureaus, negotiation strategies, common mistakes, good explanations of current laws, and professionally written sample dispute letters.
You will also find chapters devoted to special situations such as: government student loans, divorce, bankruptcy, judgments, old delinquent accounts and credit card fraud.
One of the truly unique aspects is the "Vault" access that comes with Fresh Start. This is a restricted area of the web where users can access additional resources, articles and feedback dealing with these subjects.
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