Blog: Steve Ely, CEO of eCredable

More proof that Alternative Credit data is helpful to consumers and to creditors

By Steve Ely on 3/15/2013

If you're reading this post, you already know that eCredable is in the business of helping consumers prove their creditworthiness, by verifying the routine bills they pay which are not reported to the national credit bureaus.  We have created a credit rating that you can share with a potential creditor, which allows them to quickly determine your level of creditworthiness - just like they do with a FICO score.

Vantage has announced a new score which will help millions of consumers have better Vantage Scores - not better FICO scores.  But it's still progress, especially for the lenders who use the Vantage score when determining your credit risk, and what kind of terms you might be offered.  But don't get too excited.  It takes years for creditors to adopt new scores, so you'll need to be patient.

credit score
credit scores
credit scoring
FICO
VantageScore

Don't lend to friends

By Steve Ely on 3/14/2013

It's better to just say "NO" sometimes . . .

How traditional credit scores are developed

By Steve Ely on 2/27/2013

Barry is a real expert in this space, and does a great job of explaining how traditional credit scores are developed.  With alternative credit (which is what we use at eCredable), the process is very similar except that we focus on your actual payment activity for accounts not typically reported to the national credit bureaus (things like rent, insurance, and utilities).  

How does paying off a loan affect your credit score?

By Steve Ely on 2/20/2013

Paying off loans is great for reducing your financial burden, and getting out of debt.  But it's not so good for your credit score.

Pay Off Debts
credit scores
get out of debt

FTC Study on Accuracy of Credit Reports

By Steve Ely on 2/13/2013

I worked at Equifax for 7 years, and we spent a lot of time trying to improve the quality of the data received from "data furnishers" - that is, the companies who extended consumer credit in the first place, and choose to report the payment history to the credit bureaus.  

There's an old saying in computer programming GIGO, or Garbage In - Garbage Out.  That's the world of most credit reporting agencies.  They're 100% dependent upon the creditors who report payment information to them, and if poor quality processes are used by the creditors, the bureaus are going to receive bad data which is all they can report on.  I found it interesting that the recent story on 60 Minutes about this topic completely focused on the credit bureaus as being the entire problem, when they should have given equal time to the data furnishers.  

I'm not talking about the big banks and credit card companies.  They do a great job of scrubbing the data before they submit it to the bureaus.  It's mostly the little guys (e.g. neighborhood furniture store) who don't have the resources to make sure everything they report is accurate.  

In any case, order your credit report and make sure it doesn't have any errors.  If it does, take the time to fix it now, so you don't have to deal with when it really counts - like when you're applying for credit.

credit
Equifax

Is this housing recovery real?

By Steve Ely on 2/6/2013

There are many signs that point to a sustainable housing recovery, which is good for everyone.  In my home town of Atlanta, the year-over-year improvement is 90%.  Just goes to show how bad it actually was a year ago . . .

home loans
Mortgage

You should always pay your credit cards on time

By Steve Ely on 2/4/2013

Even though many cards offer an extended grace period, or an option to pay late, you should still pay your credit cards on time.  Jason tells you why.

credit cards

Applying for a Mortgage?

By Steve Ely on 2/1/2013

Here's some really useful tips from Barry at Credit.com on some potential pitfalls.  Check your credit report early!

credit reports
Home Loan
Mortgage

5 Loans That Don't Require Good Credit

By Steve Ely on 1/31/2013

Another great article by Gerri Detweiler, which features one of our business partners - RoadLoans

auto loan
car loans
no credit
poor credit

New study shows over 50's more likely to have more credit card debt

By Steve Ely on 1/22/2013

In 2008, people over 50 were less likely to have more credit card debt than their juniors.  A recent study shows that trend has reversed, largely due to the impact of job loss.

credit cards