Credit Bureaus say credit repair doesn’t work and it’s all a scam, the Federal Trade Commission tells people (and so do the credit bureaus) that there is nothing they can do that you can’t do yourself.
BUT ISN’T THAT TRUE ABOUT EVERYTHING TODAY???
You can repair your own car yourself; fix your own plumbing or electric issues in your home. You can even represent yourself in court. So why this is not also called a scam?
Economics for one thing, the credit bureaus bring in approximately 11 billion according to a survey that came up in the last year or so. Most articles that you see on the internet are done by seasoned reporters who are good at their job but smart enough to need the expertise of a credit expert for some quotes. I have done many of these. When I first started I was excited and was ready to talk about the type of scams the credit bureaus pull but was told that can’t be mentioned.
When I asked why I was told it’s because the article is being sponsored (paid for) by one of the credit bureaus.
So that means most articles you see out there may be sponsored by the companies who sell your data. That is why you hear the phase “don’t believe everything you read on the internet”. Now its not like they are out there spreading tons of false information of course but understand when they say the main things like pay your bills on time and don’t overspend that is 100% excellent information.
Funny how they never mention much about if the companies that pay them illegally… sorry “make a mistake” on your credit report that hurts your credit score. I have looked at over 15,000 credit reports and never once have I seen a mistake that was in favor of the consumer.
Don’t real mistakes go both ways? At least some of the time?
So how to know if you’re a good candidate for credit repair. Our job is to provide a service, sometimes clients don’t want to bother with trying to figure it all out, others know they are in way over there head like I would feel when I lift the hood of my car.
Of course remember when you call companies to check them out going with your gut feeling helps but understand 98% of the time you are talking to a sales person who’s job is to make you feel comfortable with them and like them so you need to keep your eyes open on a few things first.
#1, after every question you ask after answering they say are you ready to get started?
#2, do they make it sound very easy and there are going to be no problems getting you fixed up. ALERT, unless the negative information is not your (ID THEFT or if you share same name as dad etc) IT’S NEVER EASY! This is one of the things that the warnings about credit companies are warranted.
#3, Do they make claims they can’t verify? For example, they are the number one rated or Industry leader in credit repair. ALERT: there are no surveys done on this, ask them who did the survey and watch them do the Michael Jackson moonwalk backsliding.
So those are just a few things to be on the lookout for, so now let’s talk about when it’s not worth wasting a single dollar of your hard earned money. I have had several people come to me wanting to fix their credit and after reviewing the credit report they would be a fool to pay me or anyone else for that service. They were just lucky they got one of the honest ones and I told them why and if they don’t believe me when calling others what to look out for.
UNDERSTAND the number one thing is if you recently stopped paying on your credit cards don’t expect to be able to pay someone to go in and fix that huge mess.
If the credit card is still open or just closed and your 90 days late and letting it go it will still keep reporting late payments until it’s charged off (180 days).
I have had many people come to me after they started to or stopped paying on all their credit cards or car payments and then ask me to help them as they want to buy a house. This I hate to say are people who are not living in reality and would not be a candidate for credit repair. Why would you expect a bank to loan you maybe 100-300k for a home when you can’t pay a $50 or $100 a month payment on time? It makes sense when you say it out loud but unfortunately very few people put thought into things or make the attempt to educate themselves on the subject matter of interest.
If you were investing in homes and put debt on credit cards and you had to let them all go, paying a credit repair company may not be a good option for you especially if they are large debts as at least in Texas (other states vary) you can be sued for 4 years after the charge off date.
So two main reasons why you may not be a credit repair candidate is brand new delinquent late payments or recent charge offs and very large credit card debts or car repossessions that put the difference of what is owed on your credit file.
Many times if there is a large amount of debt I suggest they talk to a bankruptcy attorney which of course I am not but after 11 years in this business I know enough to tell them the ramifications on any option out there that they have and tell them what I believe is best and point out future ramifications of the decisions they will make today.
When trying to find a credit repair company look for credentials, number one are they registered and bonded with the state they are doing business in?
NOW…. This is really not a credential it’s the law, that’s like an attorney bragging they passed the bar; you kind of have to do that.
Asking for referrals at first glance sounds great but a referral for credit repair is like a referral on a resume…. Do you really think they are going to give you a bad one?
So look for things they make claims to for things you can verify. Telling you they have 30 years of experience and finding out they are personal banker’s means absolutely nothing. So just be wary.
If the credit person you’re talking to tells you what will or should be easy, what will be more difficult or certain things they can guide you on but you have to do yourself that is the making of what sounds to be a good honest credit company who understands the credit bureau frustration tactics and demonstrates what sounds like the ability to help you.