You may see CREDCO on your credit report. This is relatively common and normal when you apply for a loan. We will explain who CREDCOs are and how to remove them from your credit report as they can negatively affect your credit score.
First of all, you should know that when CREDCO appears on your credit report, it is because the lender you are applying to has requested a credit review. Credit reports assess your credit history and help establish your credit score, making it easier for the lender to estimate your risk of default.
What is CREDCO?
CREDCO stands for the consumer information arm of housing data analytics corporation CoreLogic. If this doesn’t ring a bell, it is a provider of credit reports.
These reports are used to evaluate credit applications for housing or vehicle loans (and for personal loans).
What distinguishes CREDCO is that its information combines reports from three of the major US credit reporting agencies:
It is, therefore, very easy for lenders to use the services of these reports, which bring together all the major credit bureaus’ existing delinquency lists or credit reports into a single assessment.
So, if you find the CREDCO acronym on a credit report, it indicates that the lender who has requested the financing has, in turn, asked this organisation for a credit report on you.
Does CREDCO being on your credit report affect you?
Although there is often a fear of credit history reports appearing when you apply for a loan, actually having CREDCO on your credit report doesn’t need to be a bad thing.
If you have a good credit history, simply the presence of the signature will indicate that there is no bad credit history. A lot of continuous inquiries can have a small negative effect on your credit score, but it is slight.
The presence of CREDCO is important when you have a relatively bad credit history or when it reflects a problem with financial loans or related debts.
Remember that if the debtor situation that led to the negative rating is overcome, it should no longer appear on your credit report in less than two years.
Can you challenge a CREDCO valuation that is not in your favour?
Many people think that it is not possible to complain when CREDCO has negatively assessed their credit history. This is not true; in fact, at least two options can be implemented for this challenge.
The first is to send a dispute letter. The dispute letter is sent when the report is considered in error or reflects a situation that has changed.
Also, if you think you are subject to identity theft or fraudulent activity. In this case, you must also file a report with the FTC beforehand. Upon receipt of dispute letters, the credit bureaus must review the information contained in the news and remove any inaccurate information. Timeframes vary and a resolution can take between 30 and 45 days.
The second option would be to use what is called credit repair companies. These are intermediaries between the debtor and the creditor and the credit bureaus. These intermediaries can perform in-depth credit report enquiries to help gather all the necessary documents and evidence.
By using the professional services of a credit repair company, you eliminate a lot of red tapes. However, they are all operations that you can perform yourself if you invest a little time. Therefore, these types of companies offer the user the convenience of not having to perform bureaucratic tasks.
Why are credit histories assessed?
The assessment of credit histories and their incorporation into the user’s credit score has been common for many years. The only thing we have seen in recent years is modernising the assessment formulas.
The explanation for this type of report is really simple: financial or credit institutions need to assess the risk of delinquency in the most accurate way possible. To do so, they will use all the tools at their disposal, including the documentation requested from the user.
Credit history reports provide valuable information on the user’s financial debt behaviour in this context. They are often complemented by information on non-financial debts.