"The First Choice in Credit & Screening"

18. May 2017 18:05
by mthomas

Effective July 1 2017, Credit Bureaus will suppress most lien, judgment records from credit reports

18. May 2017 18:05 by mthomas | 0 Comments

The credit bureaus will suppress much of the lien and judgment records from the credit report which they estimate will impact 8.9% of consumer reports (19.5 million consumers).

The national BLJ (bankruptcy, lien and judgment) report identifies civil court records on individuals including bankruptcy filings, tax liens, as well as collections and judgments from more than 3,600 jurisdictions including small claims, municipal, county, state and federal courts. The report provides information on the debtor, plaintiff, amounts, dates, amendments and releases.

The report searches the national court records using the person's name (first, middle and last) to identify the number of potential records and then filters those by the persons, address, and their social security number (bankruptcy only).  Since lien and judgment records do not include the SSN, the national search with a 4-point match on name and address provides the surest way to ensure no missed records while minimizing the chance of a false positive.

In short, the new implementations, which are meant to protect consumers, mean judgements, liens, and bankruptcies might not show up on an individual's credit report if there are discrepancies in information used to identify a person. Also, these items will not show up on credit reports unless:

-Medical records have completed a 180-day waiting period to ensure all payments have been made and all insurance credits have been accounted for.

-There is consistency among the bureaus with regard to how an item is reported

-All authorized users reported by data furnishers have a date of birth included on the reporting

-The item reported, like a traffic ticket, does not include an agreement to pay (signed by the user). These items will no longer be included.

More information can be found by visiting nationalconsumerassistanceplan.com

CIC Credit will be able to provide supplemental reports (like the one included) that can be appended to all credit reports starting June 26th ahead of the July 1st change. 

12. January 2017 00:01
by mthomas

New Soft Credit Report Service!

12. January 2017 00:01 by mthomas | 0 Comments

SoftPreQual by CIC Credit
Prequalified Borrowers – No Disclosures

Get ready for SoftPreQual, the newest consumer lending offering from CIC Credit. SoftPreQual is a
prequalification tool to turn customers into borrowers faster! SoftPreQual helps you qualify more
consumers with soft inquiry credit reports and without the need for disclosures. SoftPreQual is an
easy software application for you to put on your website.

As a prequalification tool, SoftPreQual only requires name and address, so it moves consumers
quickly through the process. It is designed to target the millennial generation who does a majority of
their research and work online instead of face-to-face, the goal of which is to then feed
instantly-prequalified consumers into full loan applications.

Key Points:

  •  SoftPreQual reduces cost and brings lenders more qualified leads
  •  SoftPreQual reduces application fallout rate
  •  SoftPreQual doesn’t impact Borrower score because it uses a soft inquiry
  •  SoftPreQual requires no firm offer of credit
  •  SoftPreQual does not require declination letters or risk-based pricing notices

 Technical Description and Product Features

SoftPreQual is a simple-to-use, smart web page that lenders place on their website to turn
consumers into borrowers. When used by consumers, it orders and delivers a single-bureau
ExperianTM credit report. It posts a soft inquiry to the bureau, so the consumer score will not be
impacted. The returned credit report cannot be used as an application for credit, meaning that you
will need to order a full hard-inquiry report when the borrower is ready to fill out a full loan

The benefit is that the disclosures that you normally would need to deliver (Risk-Based Pricing
notice, Declination letter) are not required. SoftPreQual saves you the time and hassle of not having
to disclose an offer of credit when the borrower doesn’t prequalify.

  • The SoftPreQual report is only a pre-qualifying report and is not meant to be used for firm offers of credit.
  • SoftPreQual posts to ExperianTM as a soft inquiry.
  • SoftPreQual is fully private label friendly: Your brand, your name, nothing else.
  • If you have existing bureau codes, you can use your own codes, or use our solution.

Turn Consumers into Borrowers Instantly with Names Texted to Your Device

When consumers use SoftPreQual, loan officers instantly receive a text message, letting them know
that they have a lead to reach out to. Loan Officers know the borrower name, address, email and
phone number immediately. In this high-touch world of text messaging, nothing shows millennial
borrowers quality service like instant responses.

SoftPreQual can be fully private labeled with your brand, and your loan officers can create individual
pages too.

SoftPreQual Management Console

You have access to a fully-equipped management console to set up and configure the criteria exactly
how you want. The SoftPreQual management console allows you to give authorized users in your
office access to SoftPreQual. You can configure your own borrower-facing pages with custom
products, automated decision, borrower messaging, and more.

Private Branded Web Links

SoftPreQual delivers customized web links to you per user, allowing loan officers to present products
and services directly to borrowers. Loan Officers can promote their sales efforts further by putting the links to
their SoftPreQual page on local business websites such as car dealerships, home improvement
centers, realtors, and more.

Ask your CIC account executive to be setup today!
615-386-2282 or sales@ciccredit.com 

18. October 2012 19:32
by mthomas

Consumer dispute credit facts

18. October 2012 19:32 by mthomas | 0 Comments

There’s been quite some confusion as of late regarding the differences in dispute verbiage and what we can and cannot remove and what documents are required. The Following are the different types of dispute verbiages that can appear on a credit report and what is required to remove them through the rescore process.


·         CONSUMER DISPUTES THIS ACCOUNT INFORMATION – This is a standard consumer dispute and can (almost always) be removed with just the completed/signed consumer letter we provide to the client.  If it’s a joint account, they must have the attached letter completed and signed by both consumers.  Equifax will not accept a letter signed by two consumers unless it has the plural wording “I/We”.


·         ACCOUNT PREVIOUSLY IN DISPUTE-NOW RESOLVED-REPORTED BY SUBSCRIBERANY dispute that makes reference to “CONSUMER DISAGREES”, “REPORTED BY SUBSCRIBER” or “REPORTED UNDER FCRA” requires a letter from the consumer AND a letter from the creditor stating that the account is no longer in a dispute status.


·         CONSUMER DISPUTES - REINVESTIGATION IN PROGRESSThis is a consumer initiated dispute and is actively being investigated by Equifax.  A rescore request to remove the dispute verbiage cannot be processed.  The consumer has two choices: 


1.         Wait until the investigation is complete and they receive the results. 


2.        Contact Equifax Consumer Affairs (800-203-7843) and request that the investigation be stopped and the dispute verbiage removed. 


 If they choose to call Equifax to have it stopped, they should ask them how long it will take for the dispute to be removed from their report and a new report will need to be pulled after that date.  If CIC submits a request through rescore to have this type of dispute removed, it will go into investigation until the current investigation is complete.  No exceptions.


5. November 2010 01:36
by mthomas

Extra Credit - 2nd edition

5. November 2010 01:36 by mthomas | 0 Comments


Because Mortgage Professionals Deserve a Little Extra Credit

Understanding Credit

The three credit reporting agencies in the United States, Equifax, Experian, and TransUnion, collect data about consumers used to compile credit reports. The credit agencies use FICO (Fair Isaac Company) software to generate FICO scores, which are sold to lenders. Each individual has three credit scores, one with each Bureau, as the three credit agencies have their own databases, which they do not share with each other.  They each gather reports from different creditors, and receive information from creditors at different times.

A resident of the US is permitted by law to view their credit report once a year at no charge by visiting the website AnnualCreditReport.com. The individual’s “credit score” information is available for an additional fee from each of the three credit reporting agencies. This consumer credit score model provided to consumers may differ from the mortgage credit score model and the auto score model.  This is because each industry’s score model has different factors that are weighed differently in each score model.

A FICO score is between 350 and 850, exhibiting a left-skewed distribution with 60% of scores near the right between 650 and 799.

Once credit has been established and maintained, credit scores are based on five factors to varying degrees: payment history (35%), total amounts owed (30%), length of time (15%), type of credit (10%) and new credit (10%).

The largest impact on credit scores is payment history and amount owed, which is why it is important to pay bills on time and keep balances low.

Debt should be kept to a minimum and funds should be moved around as little as possible. It may be beneficial to leave all accounts open, even if they have a $0 balance.

Different types of credit (i.e., a mix of credit cards, installment loans and fixed payments) can also be beneficial to a credit score.




Key Factors That Impact Your Score:

1. Payment History (35%)

It is essential to pay your credit bills on time. Every 30 days late, collection, judgment, or Bankruptcy significantly drops your score.

2. Amount You Owe Compared to Balances (30%)

Your available credit compared to the amount owed. It’s a good rule-of-thumb to be at 40% or less of the available balances

3. Length of Credit History (15%)

Easy rule-of-thumb: the longer your accounts are open, the more positive impact it will have on your overall credit score.  In fact, if you happen to have a card that is over 10 years old with even a little activity, it would probably be a bad idea to close that card.

4. Mix of Credit (10%)

Generally speaking, if you have loans, such as a car loan, as well as open credit cards, it helps prove to creditors that you have experience borrowing money.

5. New Credit Applications (10%)There is a model that compensates for people shopping rates on home and car loans, but it can hurt your credit score to have multiple reports pulled in a short amount of time.




Factors That DO NOT Impact Credit:

  • Age
  • Race
  • Sex
  • Employment History
  • Income
  • Marital Status
  • If you’ve been turned down for credit

    Length of time at current address
  • Whether you own a home or rent
  • Information not contained in your credit report

Establishing New Credit:

Credit may be initially established through a bank, as a Secured line of credit, in which a credit card is linked to a specific amount of money deposited in the bank, typically $300-$500.  If the credit card is not kept in good standing, the bank can then take the secured funds for payment. 

This Secured line of credit will report to the Bureau, but won’t help the score very much until the bank decides to change it to an Unsecured line of credit. Then it will begin helping the credit score increase.

Initial credit may also be established with a department store credit card (for example), but borrowers should beware of the high interest rates associated with these cards and pay off the balances in full.

Several factors can be used to establish credit initially, though not on a credit report can include bank accounts, employment history, residence history and utility bills.

Although they are not reported directly to credit bureaus, bank account history may be important to lenders for first time loans and should be kept in good standing.

While they are also not reported to credit bureaus, utility bills (such as electric, telephone, cable and water) can, at times, also show a lender the risk associated with a new borrower.