Credit Scores & Credit Reports: How the System Really Works, What You Can Do, 2nd Edition

It is of little surprise here that reviewers trend towards either a 1 or 5 star extreme. This book assumes a sophisticated audience with deep interest in the subject matter - and for such readers, it provides sharp insight as to the nuances and reality of credit scoring, what a score means to consumers, and how scores and reports may be manipulated for better or worse by a variety of parties. There is also some very necessary coverage of an often ignored fact... credit scoring and report data collection lies in the hands of a small group of privately held, for-profit companies that have limited accountability to consumers and a heavy lobby presence. This scenario provides the potential ingredients for corruption and abuse, just as it would in any market where profits and lack of transparency are allowed to cohabitate. For most consumers, a credit score is mysterious and rather arbitrary - while constantly changing, for most of us, a score is only seen and important when it makes or breaks major transactions. This book tears away the veil, and in a methodical fashion. This quickly earns Mr. Hendricks a "must read" recommendation to mortgage brokers, loan officers, independent lenders, consumer advocates, small business owners, certain among lawyers, privacy awareness groups, accountants, and anyone else whose business model, clientele, or personal dealings are directly influenced by credit ratings. The book is well-suited for reference, but can quickly be read from cover to cover, and is one of the most comprehensive and current works on the subject as a whole. Keying from another review, a consumer wishing for a brochure style summary to help quickly convey quick answers to basic questions may another work is more accessible for such needs. This is a dense, thorough approach, and is not explicitly geared for the self-help crowd. Keep surfing if you are in the market for "The Idiot's Guide to Why They Repossessed My Car." Audience issues aside, those reviewers who have suggested Mr. Hendricks' work contains errors state this without examples or reliable supporting data, and appear to have a personal agenda in their biased assessments. There certainly do exist many gray areas in the world of credit reports and scoring - for example, the formulas used to create scores are generally unpublished and proprietary - but the author demonstrates experience and strong, often first-person research and citations that guides educated guesswork when required - and any such gray areas are consistently noted as precisely that by the author.

Having written about credit for fifteen years myself (I am the author of The Ultimate Credit Handbook), I know a lot about credit reports and scores. But I learned even more from this book. Hendricks brings a very unique perspective to the topic of credit scores because of his years of experience as a privacy advocate. I found his references to court cases and the testimony of credit reporting agency executives eye opening. The chapter that explains how lenders often get different reports than consumers, and the subject of "cloaking" was alarming. If you really want to understand how credit reports and scores work -- from what I would say is an insider's perspective -- I'd recommend this book highly.

I thought I had a pretty good idea what a credit score was, how it worked, and how to get mine. I was wrong. I had no idea how complicated the process was, how many different variables entered into it, and how easily I could do damage to myself.I understood that I had a right to a free credit report. I had no idea how deeply the "free" option was buried, how much digging had to be done to find it, and how limited the information would be--all in an effort to drive me to the paid options. Thanks to this book, I now know, step by step, how to get the information I need, and know which options are free, which cost money, and when I need each one.While I've been fortunate enough not to be hit with identity theft, I know people who've had to cope with it. I'm relieved that I now own a complete resource on how to deal with it. I know how to challenge errors in my credit report. I hope I won't ever need to use a lot of what this book provides me, but I'm sure glad I have a copy on my shelf.I'm also glad to have read the reports on the insurance industry, the use of credit in discriminatory practices, opting out of having personal data shared, and other issues. Coming from the editor and publisher of PRIVACY TIMES, the information is timely, insightful, and important.If you've got any serious credit history, privacy concerns, an intent to make a major purchase, or feel vulnerable to identity theft, you'll value having this book in your library.

Evan Hendricks is one of the world's leading experts on privacy. In his new book he delves into the frightening world of credit reports, showing how your financial history is misreported and used against you. If you've ever wondered why your credit isn't as good as it should be, or what is happening behind the scenes in the world of credit this book is a must read. Hendricks has been editing Privacy Times since the early 80s. He writes well and he really knows his stuff!