My Credit Repair company did nothing… Or DID they?

Credit Repair is a Two-Way Process Between You and Your Credit Repair Specialist

Many people I speak with said they have hired a credit (repair, restoration, management) company before and they did nothing as they claim. “I paid them and nothing happened”.

But then I start asking a few questions and then what comes up is they really didn’t pay attention to instructions and even didn’t pay a few bills on time which depending on the bill dramatically drops their credit score or even had a few new collections pop up on their credit.

Then a few more questions later I find out the company was a “no contract company” with “unlimited disputes” and a monthly fee. There was no follow up, no procedures in place to help the client along.

Most people expect to pay a credit company and everything gets fixed. HOWEVER, what most fail to understand is that your credit report is a mathematical equation. It does not care how old you are, what your race or religion is or how much or little money you make.

Just because you pay a company to fix something doesn’t mean it’s going to get fixed. A credit report must be reviewed an analyzed to determine if the score is able to be increased in the time frame a client is trying to achieve to reach a certain goal.

The main problem is 99% of credit repair sales people (aka- National Sales manager, National Sales Director, Area Manager, Senior Credit Consultant) are commission based. Which brings the problem that they are being told what they want to hear in order to sign them up so they can get paid. While this is totally understandable the issue is their goals are not aligned with the customers goals and time lines.

It is human nature to blame everyone but yourself. People need to understand that correcting credit issues is a two way street. Both parties have responsibilities in the transaction. The customer needs to understand they are paying for a service and needs to know that the company they are hiring have a system in place to help them if they forget part of their responsibilities due to life situations.

While you can’t blame the credit company for you not paying your current bills or new negative information popping up on your credit report. But you can blame them if they do not have a system in place to help you along this credit repair/restoration process, after all is this also not what you’re paying them for?

Understand credit is a fluid concept.. information is typically always being added to it and depending on the type of information being added a score may dramatically jump up (ex: paying down a maxed out credit card) or dramatically drop (current late payment or new collection).

Before hiring a company, take some time to do a little research to make sure they have your best interest at heart. If after every question you are getting pushed to sign up that may indicate they just want your money or they need you money. Either one does not sound like your interests are being placed first.

About Wayne Sanford:

The majority of consumers have no working knowledge of the credit system and the game it plays with their lives. A consumers’ basic credit education has come from late night infomercials, the internet and other sensational media outlets. They have no real idea of how the credit game is played and how they can stack the deck in their favor. Wayne The Credit Guy is the “go-to” advisor willing to put his name and reputation on the line – giving no-nonsense and answers as consumers ante up to the credit game. Roll the dice and learn how the Real World of Credit works and how you can play too. 

Debt Collector B.S.

Great, funny story that I just got from a client a few minutes ago that not only needs to be shared but also to educate consumers to debt collector scare tactics. She called to tell me she got a call from a process serving company asking for her ex-husband’s name (not hers) and said she wanted to know if she would be home to receive the paper serving. She stated do I sound like a man? The answer was no of course so she asked so why would you ask if I would be home to get served papers for someone else that I have no affiliation with for the last 5 years. The lady replied that’s not my job I just make these calls and ask.

She gets a call later in the day from a man who says he is recording the call and has a bit of an attitude with her on a debt that she said the last time she paid on it was in mid-2009. He states the date of last payment was sometime early 2010. Of course the original fee (turns out the card was hers) was approx. $500 but they were trying to collect approx. $1,300.

During her conversation with him he put her on hold 6 times… this is a delay tactic that crappy debt collectors do to make it seem that they are more important than you and make you wait thus making it seem “more official”.

I trained/educated her like I do all my clients to ask what was the charge off date. He kept repeating that he is recording the call for legal purposes to bring to court all of her false responses and then when she mentioned she had an advisor (me) he quickly got very snippy and said well I hope he is an attorney and you can just tell it to the judge this week and then hung up on her.

I told her that is the telltale sign of a BS debt collector. I advised her to contact the original creditor and talk to their collection department (for true peace of mind) and ask them what was the date of charge off and if they sold the account when did they sell it?

Turns out the account was sold in February 2010 to a collection company and while technically she does owe the debt the threats of a lawsuit were illegal and unable to occur as in Texas as in many other states (but different times for different states) is four years. So the debt collector who was the new owner of the account failed to take advantage of the legal remedy they had thus resorted to this type of tactic.

While the statement is obvious that you should always pay your bills, very rarely does anyone ever get credit of some sort with the intention of not paying them. However life happens and if creditors take advantage of every law out there for them, should consumers not do the same?

What Home Buyers Just Don’t Understand About Their Credit

What Home Buyers Just Don’t Understand About Their Credit

Many times towards the end of my credit program I ask a client who was the person that referred them to me if I don’t have access to the information right then. Too many times I am told. “I don’t remember so just tell me where I need to go”.

This is a typical response mostly due to the fact customers do not understand the home buying industry. I always tell them most loan officers or realtors if you are not qualified typically toss you aside and don’t bother sending you somewhere for help as you’re not a qualified buyer. I also tell them while I cannot force you to go back to your Real Estate Agent or Loan Officer what you need to understand is unless they work for a major bank the loan officers are commission only as well as the realtors. Which of course means they do not get paid until they sell a home or a loan.

It’s important to know this as each of them go through a lot on the hopes that you can qualify to purchase as a serious buyer.

They cared enough to send you to someone who can and did help you. The right thing to do is what karma says to do. You show that loyalty back to that professional who cared enough to point you in the direction of someone that can help put you in the position of being a home owner. So now you can go back to them as a qualified buyer and you now have someone to refer friends to as you can say with confidence they cared enough to help you when others did not.

About Wayne The Credit Guy:

Wayne Sanford, also known as “Wayne the Credit Guy“, is the owner of New Start Financial Corporation. With nearly a decade of experience working in the credit industry, Sanford has personally reviewed more than 13,000 consumer credit files for mortgage professionals, investment groups and consumers.

Labeled as the “Company with Credentials“, New Start Financial Corporation works with financial professionals and consumers across the country. Sanford and his staff offer “real world” advice and help layout the best course of action consumers need to follow in order for them to achieve their financial goals.

Perfect Credit Score Makes News

There is a difference between good credit and perfect credit. In fact, perfect credit is so rare, it makes news when it happens. Like a Vegas Casino, the credit game is set up with the house winning more than not…contact Wayne the Credit Guy and learn how to make the credit game work for you.

 Less than 2/10ths of 1% of the “scorable” population has a perfect 850 FICO score.

Understanding Credit & Credit Scores

Dallas Credit Repair Expert Talks Credit Scores

Understanding Credit & Credit Scores

One thing people need to realize that credit is a fluid concept. It is a mathematical equation where creditors and possibly collection agencies are reporting information on your personal consumer credit file. Taking that into account and the possible amount of information that is changing slightly or greatly the results of this will equate to the changing of your credit score, typically on a monthly basis however as new information is added or removed that score can change just like a math equation.

What also confuses people is how it seems every place they go to pull their credit they get a different credit score so which is the real one? The answer is actually a very simple one.

Different lenders place different point values on the same bits of information thus while you will never see the exact same credit score from a car and mortgage lender they typically are not very far off, typical variations range from 10-30 points.

The above does not factor in if the score is from the Vantage score model as that is a topic for another time.

About Wayne the Credit Guy:

With nearly a decade of experience working in the credit industry, Wayne Sanford has personally reviewed more than 11,000 consumer credit files. Sanford is a regular credit advisor for television and radio news programs and frequently contributes to several of the more renowned financial websites on the internet today. Sanford is a licensed and bonded credit company and is Fair Credit Reporting Act certified by the Consumer Data Industry Association.