Despite the massive efforts of the credit reporting agencies to persuade you any different, there are many credit repair organizations that are no different than many other services. Just like most industries, less-than-honest businesses do exist and therefore are damaging to their clients and also to the credit repair industry as a complete.

A credit report is used by potential creditors to evaluate the credit worthiness of an applicant. This particular article has a comprehensive record of just how much borrowed by you, the transaction history, amount of credit available and the length of your credit history etc. These records are compiled as well as maintained by 3 credit reporting agencies, Experian, Equifax and Transunion. The agencies use a credit scoring system designed by Fair Isaac Corporation called the FICO score to evaluate people.

Poor credit loans have became increasingly common recently, what with rising debts, and the amount of those with poor credit scores on the rise, lots of financial lenders are just not ready to tackle the possible risk of loaning money to such high risk customers. The handful of banks that are willing to do so are charging a top premium for their services, and thus people who already have really stretched financial resources are experiencing the pinch even more drastically.