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Steve Ely, CEO of eCredable, used to work for Equifax running the Direct Consumer Business. One of the challenges he experienced was they had a very limited scope in terms of how they could help consumers. Consumers really wanted help with financial advice or with their credit file but that was not what they were there for. Their primary business was to serve companies, not consumers. He left that company to become CEO of a company that does serve consumers and individuals.
Introducing eCredable!
A service that helps individuals build a true picture of their payment history that every creditor must take into consideration when they use other credit related information to determine your credit worthiness.
What is the difference between traditional credit score lending and eCredable?
FICO score:
A numerical score based upon Amounts Owed (debt), Credit History (from debt products), New Credit (new debt), Type of Credit (debt), and Payment History (on the debt). In summary, borrow a lot of money and pay interest regularly over a long period of time and you will have a great credit score, allowing you to borrow more money, get lots of credit offers in the mail, and be a target for identity theft.
eCredable’s AMP (All My Payments) Credit Rating:
An A – F grade of your true payment history, NOT JUST PAYMENTS MADE ON DEBT PRODUCTS. Your electric bill, rent payment, daycare tuition, the month-to-month type bills most of us have that are never factored into a FICO score. If you have debt, your current payments are taken into consideration when you include that in your eCredable profile.
Who can eCredable help that FICO doesn’t?
- Graduates: Starting out their adult life as an individual with bad credit or no credit. Ever try to get a cell phone without a credit history? Ever been turned down for an apartment because of your credit score? Get past dummy lending (getting approval from a FICO score) by showing your AMP Credit Report.
- Immigrants: Why would you come to this country only to learn you have to incur debt in order to “build their credit”? Individuals that are here legally and don’t have a traditional credit history can show that they have a good payment history with eCredable’s AMP Report. They can apply for bank accounts, get better rates on car payments (which I don’t recommend), even use it when applying for a job with a company who looks at your credit score.
People who had bad credit and just can’t wait for their FICO score to improve: Why wait for your credit score to “heal”? Use the eCredable Report to get better terms or interest rates when lenders- Debt-free lifestyles: Continue to pay the light bill, phone bill, even child care and you will likely qualify for the best rates on car insurance and mortgage rates – even when you have a zero credit score.
Build your AMP Credit Report
Other resources mentioned in this episode:
- Vid-torial: Annual Credit Report
- Review Your Credit Report blogpost
- Equal Credit Opportunity Act: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre15.shtm
- Blogpost Rewind: I’m working on my Debit Score
- eCredable Facebook page
- Follow Steve Ely on Twitter
Hey Steve just listened to the show. Good interview, I think this eCredable could really catch on. You know I am definitely going to being promoting it as an alternative to the FICO score and will be using it myself when we move in the next year (hopefully.)
Hi Steve,
I am at credit score Zero. I always was.
I am an immigrant who never had any debt in any country. I believe in producing resources before consuming them. I am a computer science engineer and use critical thinking every day all day. After years and years of thinking I still can not convince myself to get a credit card or go into debt. I always hear “you have to have a good score because of the system”. Well I design systems, and I know systems come and go, What remains are principles and moral standards. I don’t want to go in debt monthly/regularly in order to finance a house later on.
Do you have a step by step guide? or things to do (or not to do) for people like me. I see your article is from 2011, do you still think that eCredable is a good choice? What other tools or tips do you have?
Thanks,
Lehel
Hi Lehel,
Good for you! Do what’s right for you and your family – not what everyone else says is the status-quo.
Yes, eCredable is still a great way to prove your true credit worthiness. In face, I just had Steve Ely on my new show http://stevestewart.me/changing-credit-scores-from-123-to-abc-with-ecredable/
As far as a step-by-step guide: I don’t really have one but could probably answer it in one sentence. Pay your bills on time, check your credit report for errors (see http://stevestewart.me/how-to-get-a-free-credit-report-in-under-4-minutes/ ), and have a large down-payment for the size house you want to buy.
Traditional advice is to put 20% down, but I’d like you to put down as much as possible so long as you aren’t neglecting retirement savings or other savings goals (like replacing an old car). The more you put down, the more likely you are to be approved. At least that is what I believe and will be working towards with our next house (5ish years away maybe).
I am hosting a webinar on Tuesday night with Jon White. We will be talking about buying a house. If you are interested then go to http://stevestewart.me/blab/ Tuesday 4/5/16 9:30pm EST.
Does that help?
Hi Steve,
Thank you very much for your reply, I am checking out the links you provided. I will definitely tune in for the webinar.
Thank you for your expertise.
Lehel