How to Leverage the Credit Bureaus For Funding

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All right. How are we going to leverage our credit report and credit scores and credit bureaus to best maximize what you are trying to do?

Most of our clients are asking us questions like, “What if I got a trade line that only reported to two credit bureaus?”

First, you have to understand that to have three credit bureaus, okay, you have two different models, you have the FICO, which is the Fair Isaac scoring model, okay, and you also have Vantage.

Now, there’s plenty more out there, but the two main ones are your Vantage 3.0 and your FICO. Vantage 3.0 is scoring miles 501 to 990, so 501 to 990, whereas FICO is anywhere between 350 and 850.

So understanding that FICO is more prominent. There are still over 2,400 companies nationally that use just Vantage, 2,400 lenders.

Now, let me tell you this. If you’re buying a house, typically what they do is they call it a mid score.

So if you’ve got a 500 credit score, a 550 and a 600, when you’re buying a house, what they’re looking for is the mid score.

The mid score between 500 and 600 is that one 550 score. So they’re going to pull all three, but they’re going to use that as the deciding factor for your loan requirements, okay, and your iteration fees, and your percentage, and your length terms, and your loan, all of that stuff.

So, first, understanding that there are two different scoring models. Understand also that not every score is going to be the same. And let me share this with you, how this works.

On the East coast, we have Equifax.

It’s based out of Atlanta. So the primary credit bureau that most of these lenders, credit cards are pulling from, if you’re doing your pull on the East coast, so all the way up from Maine all the way down to South Florida, typically pulled from Equifax.

Now, if you’re talking about the middle of the country, Midwest, then those are typically pulling TransUnion.

That’s the prominent credit bureau they’re going to pull from. On the West coast, okay, California area, Las Vegas area, they are going to pull Experian.

Not all lenders and credit cards and things that you have on your credit report are exactly pulling from the same credit bureaus.

So TransUnion and Equifax tend to be the most accurate together as far as the most similar score.

Experian is a little bit off but in terms of the partnership between Equifax and TransUnion, they tend to be the scores that have been closest in the model.

Now, if we live on the West Coast and we’re applying for a credit card that’s primarily out of the East coast if you look it up and it’s based out of Maryland, then typically it will pull the Equifax pool.

Same thing if you’re over here.

You’re on the Equifax site, and you’re in Atlanta, Georgia and let’s say you’re pulling a BMW vehicle that is based out of California, Los Angeles, it is going to pull Experian.

Even though you’re on this side of town, the company itself is based out of the state.

So not just because you’re here in the area does it pull that, you actually have to look deeper and say, “Okay, where’s the company actually from?”

So that being said, all credit bureaus are not going to have the same credit score. It’s impossible.

Some of them are going to be very, very close.

But if you’ve got a vehicle, if you’ve got a home, you’ve got credit cards, you’ve got things on your credit report, understand that the scores are going to be different because each one of those cards may pull from a different bureau.

So one score maybe 655, the other one maybe 677, okay, and the other one maybe 691.

They’re not going to be exact. And the reason for that is because they’re pulling from different places. Same thing with inquiries, and same thing with collections.

If you’ve got a bunch of collections on your credit report, understanding, know that that collection company may only pull from two credit bureaus.

Maybe that collection that you got after making three, four mispayments finally goes to collection, the collection company is like, “Oh, we only pulled TransUnion and Equifax.”

So your Experian never gets touched with a collection. So you’ve got multiple collections on Experian, TransUnion, but then your Equifax is completely clean and no collections.

Now, when I say leverage, and part of this video is understanding your credit report so you can leverage the credit Bureau that you want things to happen for.

A lot of clients come to us, you posted tradelines, it didn’t report to all three. Maybe it hit two credit bureaus.

There are some lines that report to two and not three credit bureaus. Understand this, it is the banks, it is not us. I do not own Bank of America, Discover, Capital One or Chase, unfortunately. If I did, I wouldn’t be here on camera, I can tell you that if I own those banks.

But I can’t tell you this. It’s the banks that report the data, not Wholesale Tradelines.

So if a line doesn’t report to all three, it is simply because that bank typically doesn’t report to all three.

So understanding this, now, here’s where the leverage part comes in.

I put on three tradelines and you call us up and you’re like, “Hey, I need a gold package. I need some revolving lines. I want some high credit limits. I want some good age.”

We get you on a gold package. That gold package reports to TransUnion and let’s say Experian, let’s give an example but one of the lines or two of the lines miss Equifax.

If you understood this part right here, you’d save yourself a headache. Understand that if the three lines that we put on, two of them hit two credit bureaus and one of them missed Equifax.

All you want to do is contact the credit companies.

Do you really care if it’s a Best Buy Citibank, or a Navy Federal credit card if you got $10,000 Visa and you could use it anywhere?

Does it really matter if it is a Citibank Best Buy credit card that is worth $10,000 or a Navy Federal $10,000 Visa card?

If they’re both Visa and you could both use them, do you care what card it is?

No.

So understanding what credit card companies or loan companies, understanding what credit bureau they’re pulling for upfront, you could leverage your credit report.

“Okay, cool. I got three trade lines that are reporting to Experian. Okay. And it looks like my Rental Kharma posted to Experian, and it looks like this reported to Experian. Well, I’ve got five really good accounts on Experian and my collection didn’t even hit Experian, my collection hit Equifax and TransUnion. Oh my goodness. What could I do? Could you actually contact banks that only pull Experian?”

Let me say that again.

Everything posted to Experian, all your good lines, you’ve already got good positive history on Experian, maybe you don’t, but you just need a gold package, you put them all in there, all of our tradelines report to Experian

…this is an example, and you had a couple of negatives that did not report to Experian, could you contact banks or loan companies or even get a vehicle that only pulled from one Bureau from that Experian that you had no negatives on that all your trade lines post to?

Yes, you could, absolutely 100%, but you have to know what kind of stuff. You’re like, “That’s it. I’m done. My trade lines only reported to TransUnion, Experian, and I’ve got my collection on Equifax, and one of the trade lines out of three posted Equifax. I’m done. Can’t do anything.”

No.

Know that you can pull from Experian, just know what banks are pulling from that credit bureau.

Takes a little bit of due diligence, takes a little bit of knowledge, understanding that if you had everything good, go through your credit report.

If you need more age, more credit limits, we do that.

That’s what we add the tradeline for.

If you have no collections on that credit bureau, I have banks, hundreds of banks that I can share with you that only report to certain credit bureaus.

So if you’re like, “Okay, cool. Everything looked good on Experian. I want to put a couple of trade lines on.”

We put the trade lines on, they all post to Experian. Boom, you’re going out, you’re leveraging, getting credit cards that only pull from one bureau because if you’re trying to pull a credit card or get a loan from a company that has three collections, it’s probably unlikely.

So I can let you know, “Hey, this credit card only pulls from this Bureau.” “Cool. Let’s rock and roll.”

So understanding leverage and understanding your credit report first and that you have companies that can only pull one credit bureau.

I wanted to share this with you guys, very, very important.

But here’s the deal.

The way FICO works and the way Vantage works, there’s still a ton of companies out there that that are pulling from Vantage, some of them do a combo of FICO and Vantage, some of them are just Vantage, some of them are just FICO.

So if you’re looking at your Credit Kharma credit report or you’re looking at PrivacyGuard, those are going to be the prominent ones that are based on Vantage 3.0, okay, and then FICO obviously, the Fair Isaac credit.

There is typically like your Experian credit check total, freecreditreport.com, those are going to be from the FICO.

That being said, leverage, look at your credit report tonight, see what’s going on, see if you need tradelines added to the best report you have, and then contact us and say, “Look, I want to put trade lines on this. I want to make sure they hit this credit bureau.” I can have my guys basically say, “Hey, I’m looking for this specific credit bureau.”

We can actually pick tradelines that typically report to those credit bureaus for you.

So if you knew you had five collections and nothing was hitting on Experian, you call me up, you’re like, “Hey Mike, I need three trade lines that report to Experian only.”

I can pick cards that typically report to that credit bureau.

Then I can also say, “Okay, these credit cards actually pull from that credit bureau, so that way they’re not pulling from the ones that are negative from the collections that are on your Equifax and TransUnion.”

I’ll see you tomorrow on Tradeline TV, and until tomorrow, my name is Mike with Wholesale Tradelines.

Take care.

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