Car Dealer Ads “ Let us help you with your credit”

Car Dealer Ads “ Let us help you with your credit”

My name is Wayne Sanford, I am the owner of New Start Financial Corporation and have been in the credit industry now for over 11 years going on 12 years soon.

I have analyzed over 16,000 credit reports and a large majority of them are for people trying to purchase or refinance their homes.

Prior to the meltdown one of my companies was approved by Dealer-track who provides the software platform for most large dealerships across the country, for the average consumer think of it like after you deal with the sales person and sales manager then go “in the back” to fill out the paperwork with the finance manager and get all the “extra coverage” presented to you to buy.

Now there is NOTHING wrong with that for both parties, the dealership makes more money and the consumer gets more valuable coverage if they want it to protect them from financial unforeseen incidents.

What I get a REAL kick out of is the advertisements some of them use to make it look like they are doing you a favor by saying they can help you with your credit and they created a separate division to help consumers with challenged credit or credit “with a few bumps on It”.

As with most advertisements if there is even a sliver of truth to it then advertising people literally make a molehill into a mountain.

What pops in my head is an old TV advertisements from some bank about use our bank not the others as we don’t change a fee for you to talk to the bank tellers as well as some other ridiculously made up fees.

While most of it was an outright lie, they made you think are you getting charged those types of fees and don’t know it? Answer—you’re not but their point was they don’t charge some fees that others do.

So let’s explore that same concept with car dealerships and other types in the same way, my personal opinion if they have to lie to you to get you in the door that’s strike one in my book, but it’s done all across the industry so for the small percentage of educated that read this let’s put a little more knowledge into your Christmas/holiday stocking.

REALITY Check # 1:

  • ALL dealerships have 95% of the same lenders.

Bank lenders have sales representatives whose job is to go to dealerships and say use our bank to sell your product, we will give you great rates and help you make more money and sell more cars.

The job of this sales representative for the bank is not to have them in one dealership but as many dealerships as possible. That does make sense, doesn’t it?

Car Loans are Securitized:

There are what are called in the industry “Bottom feeder” lenders, these are lenders that are willing to loan money for a car at a 480 credit score, if they are willing to put several thousand down for a down payment and charged them the state maximum of 24% interest.

I would almost call this a temporary loan as how long can the customer keep up a payment that is obviously crazy as just like with mortgages majority of the interest gets paid first before the principle ( approx. 70% of pmt is interest ).

So a $20,000 at 24% interest costs the customer $14,560 in interest and is approx. $575 a month. This does not count the few thousand that was given for a down payment.

At 10% interest? Payment is $425.00

The car lender will then repossess the car and sell it at auction and place a collection and possible lawsuit against the client and since very little was paid on due to all the interest paid in the beginning of the loan. Sounds like a good business but I personally don’t know how those people sleep at night ( the lenders not the dealerships).

Our Department/Program will help your credit:

If you know my blogs you know I have a tendency to deviate when I get a thought in my mind I feel you need to know (think of it as backstory).

ANY TIME an account goes on your credit and you make on time payments it will help your credit, that’s not rocket science. And don’t be deceived into thinking it is going to increase your credit score by 100 points.

And while I always say your credit report is like a thumbprint and everything is report specific so your credit score will increase but if it increases 5 points then all the advertisements about helping your credit they mentioned to you to get you in the doors was not a lie.

Credit repair is a service but it is also a bit of a skill as one would need to know all the inner workings of it and how lenders view that report and score. If a credit expert does not know this then how can they truly help the client and if you are the client are you not paying for that expert advice? Too help you navigate thru a system that media (paid by banks and credit bureaus) that makes it seem like all you have to do is click a button and things will be “fixed”.

If you think that then wow is all I can say, I recently was contacted by a client you found me on the internet and read some very nice reviews on me which I thought was nice but was screwed over by a company in the past and wasn’t sure about doing it again, she said her husband got a lot of negative information removed from her credit but she was still declined for a loan.

So I said to her well it’s like going to a dentist, if you don’t check out the dentist first and they are not good, whose fault was that for not checking them out and are you now going to stop going to the dentist?

I told her you need someone who specializes in mortgage credit to help you get into your home and obviously just deleting some negative information didn’t do the job so a decision needs to be made and I will not “sell you” on me, my credentials speak for themselves, if you want me to help I will be here for you now or a year from now if you decide to make that choice.

I do not push people into a decision as I believe we are all adults and can make their own decision without undue influence.

* Want to learn more about how the credit system works?

Buy my book for easy to understand concepts of how credit works and how lenders look at you just email me today at:

Debt Settlement Company Credit Associates flat out lies on commercials

Debt Settlement Company Credit Associates flat out lies on commercials

As we get older we seem to fall into certain patterns or habits, so for me every morning I wake up and as I get ready for work I have the morning news on. This somehow happened to me a few years ago, I think it’s automatic the moment you cross over the age of 40.

One of the consistent annoying commercials is one from the debt settlement company called “Credit Associates”. I always get amazed at how TV networks don’t get sued for airing what is flat out lie to the public.

They start almost from the beginning by saying “there is a secret the credit card companies don’t want you to know, if you have more than $5,000 worth of debt you have the right to settle that debt for a fraction of what you owe”.

NOTE/LIE # 1: there IS NO secret…..

NEWSFLASH for consumers reading this ANY book, commercial or Ad if you even see or hear the sales person saying they have a secret that banks don’t want you to know it is such a lie it’s crazy. Example, how can it be a secret if they are advertising to tell you?

It’s a gimmick trick to get you to call so they have a chance of selling you so don’t be a sucker.

Back to my point….

There is no law that says any debt over $5,000 gives you the right to settle on the debt based on what they say in their commercials.

$5,000.00 is probably their bottom line that they can charge before they can make any decent sort of profit that is worth their time and expense on the consumer while dragging out the process.

While I have no clue how they get away with lying like this what I can say is I actually got a solicitation call from them so I jumped up for joy and pressed “1” to talk to a representative.

My representative was named “John” he did not sound like anyone I know named John. I will point out and I said I was interested but I was super curious as is my nature and wanted to know what was “the secret” or law that allowed me to save thousands like their commercial said since I was never aware of or heard about.

Wouldn’t you know it but John didn’t seem to know what I was talking about and went into his script.

I kept interrupting him to say I want to know first what this law is first before seeing what his company can “do to help me”. He kept trying to read through the script and I said “ hey if this information is above your paygrade then that’s no big deal so put me on hold or transfer me to a supervisor so I can get the answer and then back to you to move forward”.

I was giving him EVERY option available to get me the answer (if there was one) and he would not or should I can could not answer the question. I then started saying “listen your company advertises this so why are you not prepared to answer this question which is in the first 10 seconds of your companies commercial or at least be able to transfer me to someone who can at least tell me the answer”?

As I had some time at the moment and justified however long I dragged this out for utilizing the time for this blog I must have been on the phone for at least 15-20 minutes.

Towards the end of him trying to push past my question and finishing his script and I said to “John” that if your incapable or unwilling to answer the simplest question on the 1st sentence of your companies commercial it’s obvious this company is a scam company so answer the question the next time you speak or I am hanging up the phone.

Shocking result of what happen next? I hung up the phone.

What most of these companies do is basically take advantage of your unwillingness to talk to your creditors. The collectors can be jerks and some are nice. Once a bill has gone past the 120 day mark creditors are open to ‘re-discuss” the original terms of the agreement. Now of course to get to that mark your credit score is destroyed and you may be a candidate for credit repair but maybe not as your credit report is file specific. Think of the term different strokes for different folks.

Without any knowledge whatsoever you should be able to get them to give you a minimum of 20-30% discount off of the current debt owed. An experienced person in this industry can go much lower, I have gotten an average when helping clients with this issue anywhere from a 70-90% savings.

Quick story to end this blog, had a client ask me to look at what their in-laws got themselves into and said sure will be happy to give my opinion. It was a debt settlement program, they had several credit cards and they were paying $375 a month into a “pot” so to speak and when the funds grew large enough they would go in , settle one account and so on.

The issue was in all of the fine print and there was a lot of it but on the page with the fees etc it was CLEARLY marked that this “company” was charging “$221.00 a month” to take their money as their fees that they have not performed and would not perform until these particular clients had at least $1,000 to settle debt # 1.

So they were only saving approx. $154 a month towards settling their bills. They were in shock but I said I didn’t understand why they were as this was clearly printed and they said the person didn’t tell them that and they didn’t look at the paperwork and only signed where he said they needed to sign.

I then said, you mean the “Sales person”??

They got silent really quick, and I gave them advice on what to do but said they have no recourse as they signed the papers and the fees were clearly marked.

You can do this yourself and save some money if you want to or if you choose to hire someone make sure you get some solid numbers and make sure you’re getting some good savings. I had a guy who owe $127,000 in unsecured debt and got everything settled for less than $40,000 which included my fees so he saved over $80,000.

That was one heck of a job and time consuming but normally do not deal with something that large typically.

Moral of this story, READ what you sign and NEVER make an impulse buy/decision. If your being constantly called about your decision then it seems they NEED your money, go with the person who makes you feel comfortable, has a background that can be validated by outside parties and follows up with you when YOU ASK THEM TOO.

* Want to learn more about how the credit system works?


Have questions about your credit where you may need my help?


Buy my book for easy to understand concepts of how the credit system works and how lenders look at you.

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Shopping for credit repair on Craigslist???

Shopping for credit repair on Craigslist???

So I was actually on craigslist looking to see if there was anyone that installed artificial grass (I have 4 large dogs) it popped into my head and I just did a quick search for credit repair.

WOW! Was I in for a shock, the absolute BS that was being advertised on this section blew my mind away so that got me thinking about another educational blog on credit repair services. I hope this help all that read this, even you other credit repair companies that try to educate you and not get screwed.

I even spent some time looking at their websites, at least the ones that actually HAD a website all I could really do is shake my head I WILL NOT mention any company names as that’s just wrong and unprofessional.

First thing is first… there is no “QUICK , FAST “ credit repair, the reality is you did some damage to your credit file and it will take some time to get yourself back up to where you once were and while creditors or debt collectors have special access to report items on a consumer credit report if you challenge ANYTHING the law allows 30 days for them to investigate or correct. I say this as I have seen some ads saying corrected in 5 days, consumers cannot do that. If they are using a trick to say it’s called a rapid rescore only loan officers have access to this program.

NOW, when an investigation is sent out to the credit bureaus the timeline for response is 45 days.

As of the writing of this blog just in the DWF (Dallas Fort Worth) area there were 1637 posting for credit repair just under the services section, so I can only imagine how many across the country there are in each city/town and as I type this I keep clicking on another one and shocked at all the illegal statements being made.

Now let me state everything they say on these things I will make the official disclaimer that I do not know if they can do it but my almost 12 years of experience says most of these claims are a joke or a flat out lie.

But what I do identify is some of them who claim anywhere from 15 year’s experience to 30 years of “credit repair experience” can’t seem to understand the basic laws (both state and federal) of our industry in the contracts they provide.

So I can then pose these questions to you:

If they don’t know the simple laws of their own industry now how comfortable to do feel giving them all your information and paying them your hard earned money?

CPN’s otherwise known as Credit Privacy Number, is flat out illegal (federal crime) for you to use to obtain new credit. No gray area, anyone saying otherwise is lying.

Here are a few “questions” you may want to pose if you decide to call these companies:

Q- With all of the years and years of experience you have why do you not have any 3rd party credentials to validate your company?

  • Enjoy the backtracking double talk you will get on this one.

Q- You keep using the word “legally” like we fix your credit with legal credit repair. Can you explain to me what is illegal credit repair and how do you define your “legal credit repair compared to the “illegal credit repair” your comparing yourself to?


As I write this I keep glancing over so this may be a long blog, one just said “LICENSED BY THE ATTORNEY GENERAL”. I’m seriously thinking about sending this over to my contact at the AG’s office for CSO’ now but it is a Friday.

Sorry! I will try to focus, but I hope you are learning and enjoying this week’s blog.

Another one says they are “Pro’s” but they can’t seem to spell correctly, not just one word but several, WOW! Hey guys, it’s a 2 paragraph ad and it’s called spell check!

For the companies that “SELL TRADELINES:

Q- FICO changed the scoring model for when you are added as a “Authorized User” this is called piggybacking. FICO changed it back in 07-08 after a news article about paid trade-lines so why are you charging so much when they changed how much it can help me?


Here is a possible answer first, when a “dispute” is logged on your credit report the negative account is not calculated into the score so your credit score “jumps up”.

Think of this as a false positive, if this is how they get you to call them then that is a very deceptive method in my opinion.

Q- But when the dispute is on the report my score jumps up while that is disputed, once its removed, doesn’t the score drop again?

The answers is yes, but see how they explain that after they realize you can’t be double talked about what they advertise to get people to sign up with them.


If they tell you their services are guaranteed, then ask for a copy of the contract to review. In the”fine print” it usually says that any item they remove is worth anywhere from $50-150 per item, NOT ACCOUNT but item. So if your name is spelled wrong four times. That’s worth between $200 – $600 according to the contract you signed.

The devil is in the details, so buyer beware.

Ok, so that’s enough for now as I could literally go on for hours. Here is the reality:

  • Your credit can’t be fixed “quickly so don’t fall for the scam, it needs time to heal.
  • Don’t believe what the SALES PERSON is telling you, do some research on the company, if there isn’t any then that’s what we call a clue.
  • ANY credentials they brag or claim can it be verified?
  • New SS #’s or CPN’s are ILLEGAL
  • If they have been around this industry for 15-20 years why is there very little about you online?

My overall opinion of companies that advertise on craigslist as you can see is very low, if I had to say why is it done then one opinion can be these are companies who look to steal your money and not do anything to help you, another one is maybe they actually do what to help but are incredibly under qualified and truly do not know how to help someone.

And a final one is how good can you be when you do not know the simple rules/laws that you have to operate under?

And if your one of these company owners that are reading this no issues, call me and I will be happy to tell you what is legally required according to federal and state law on your credit agreements so at least that part of your business is legal.

* Want to learn more about how the credit system works? Take it from someone who has real experience fixing someone’s credit (even as current as today as I review all investigations that leave my office).

I’m basically obsessed with credit and how it works as well as what these companies do to consumers.

Buy my book for easy to understand concepts of how credit works and how lenders look at you just email me today at:

It’s that time of the Year

It’s that time of the Year

2016 is over!

Here comes 2017!

“I’m going to lose weight, take better care of my body”.

“Finally do all those jobs around the house”.

“Start saving money”!

“Catch up on my bills”!

These are just a few things we all say when the New Year is coming. This is also a prime opportunity for collection companies to start sending everyone their “Start the new year right” letters and calls trying to take your tax return money.

There is never enough time to discuss the legal and ethical thoughts (on both sides of the fence) on this topic but myself like I hope ALL credit companies should tell you not to pay collection company (Junk Debt Buyers).

NOW, let me point out that in most states the timeline for you where you can be sued is 4 years, however many states had ridiculous timelines ranging from 5-10 years where they can sue. (Find out and just move, that is a state that flat out doesn’t like its residence).

Is there a way to fight when a collection company files a lawsuit against you? Of course there is, can they even legally do it? EVEN if they have all the documents they are legally required to have. The issue is 99% of consumers have no clue how the legal system works in this matter and if you hire attorneys they will want a ton of money from you which makes it seem counterproductive.

And no one will pay an attorney the amount of money required to take a case all the way to the higher courts and odds are the collection company won’t either as if they lose the case now there is precedence that can be used by others across the country and destroy their industry which is in the hundreds of millions of dollars if not billions of dollars a year.

So that’s what the little guy has to deal with. So some things to know, an article published by the CFPB in 2014-15 showed debt buyers purchased junk/delinquent debts for 4-6 cents on the dollar.

Yet they try to collect the full amount from consumers or will be “generous” as they “want to help you”, and will offer a 50% discount off of the old delinquent debt they bought for 5% on the dollar.

Depending on your debt, you do the math on an account the original creditor wrote off the debt and got a tax benefit from and then either sold the debt or gave to a collection company to collect on.

How is this legal you ask? Just say thank you to your government and a special provision in the IRS tax code.

This is also the time people get their tax refund and look to clean their credit up in order to move forward in their lives to buy a house or a car or refinance each of them to save money, so here are a few things to think about. As the saying goes, if it walks like a duck, sounds like a duck….. It’s a duck.

What do I mean by that? The people you typically speak to and inquire about credit repair services are sales people. In this industry they are commission only sales people. Regardless of what they tell you. Isn’t it a smart thing to really not believe what a sales person tells you? You would be amazed and people I talk to tell me “that’s what the person told me” and then when I clarify “you mean the sales person” then it clicks in their head how they got scammed. Their job is to get you to pay them, that’s how they get paid, I will let you figure out the rest.

If it sounds to you that in order to make all your problems to go away all you have to do is to pay them then just run.

So then what do you do? Other than call me of course that’s why I’m an expert in credit education and credit repair services. What you need to do is ASK QUESTIONS and research the companies you are looking at giving your hard earned money to, does your conversation with them seem too good to be true? If they brag about their experience is there ANYTHING to back it up like 3rd party confirmation? I’m currently 47 years old and could claim I have been in this industry doing credit repair for over 20 years and the grey in my beard would make that a plausible story as “it sounds good”.

If the company tries to get you to sign up on the very first call that’s another red flag. I always tell people to give it some thought and crunch their numbers as I have been doing this for almost 12 years so if they need to get started in 2 months or 11 months I will still be here for them when they are ready.

That’s the end of this week’s blog/Wayne rant.

So while this blog was just to help guide you a bit towards figuring out what you need to look for when it comes to the new year’s goals there are so many little things that factor into this it can’t be put in one blog so feel free to give me a call or contact me my information is below and I can tell you what is the best direction for you to take is.

Yes believe it or not if I can’t help you I will provide you options on what’s best for you. =)

*** Want to learn more about how the credit system works? Buy my book for easy to understand concepts of how credit works and how lenders look at you contact me today to get it at:

or call us at 469-424-3031

Timeshares, Your Credit Report and Your Credit Score

Timeshares, Your Credit Report and Your Credit Score

My name is Wayne Sanford, I have been in the credit repair industry now for over 11 years. In that time I have analyzed over 16, 000 credit reports for clients across the country from a credit repair viewpoint. While credit repair is a service and like any service out there that you can do it yourself and for a small percentage of people there are issues that you just do not need a credit repair company’s help. Especially times where it’s only a minor bit of advice that is needed.

IF credit repair was as easy as people/government & media make you believe then EVERYONE would have 700 credit scores.

The fact is it isn’t, laws are formed against the consumer, laws are used AGAINST the consumer so to be naive enough to think that a credit company who deals with these companies on a day to day basis doesn’t know more than you is an uneducated thought.

THE ISSUE is finding a good company that wants to help you not just take your money or keep you as a customer on the books for years. So that is where you need to research them and check out reviews and identify which reviews are the obvious bogus ones..

GOOD LUCK and enjoy the information in this blog and I hope it helps!

I recently read an article about timeshares and made me think about adding the topic of credit to it as a blog which it was a great article but was missing a few things so I figured I would throw in my two cents on the topic and elaborate on several things consumers need to know that the article missed.

You typically hear about these high pressure (once you get there) sales pitches about getting a free 2-3 day vacation and a $100 credit towards something as long as you attend their 90 minute presentation about their product giving you the ability to “buy in for pennies “of the actual price so you have a vacation spot to go to after paying for the airfare of course.

Now everyone is different and I’m sure there are plenty of people who love their timeshare but I encounter most of the people who succumbed to the pressure and “just signed for it” since it seemed like a good idea at the time.

A VERY LONG time ago I attended one of these with an ex after saying no multiple times he even asked us to “fake it” so when we got up for the table with him (where there was about 30 others in same situation talking) he would make announcement that we signed and then everyone claps. At the time I could care less but it gives a sales impression to the others that maybe they are missing something if they don’t sign.

But that was a younger me from almost a decade and a half ago and definitely would not happen now.

Technically this time share is looked at by lenders as a mortgage which it actually is. Either type of timeshare (a deeded interest of ownership or right to use with no ownership).

I have heard of many people who at one point were just looking to sell their interest for $1 just to get rid of it but could not find any takers (We call this a clue).

Timeshares are for a specific market; typically you have a fair amount of discretionary income the couple is usually in their mid-30’s and up. They actually buy data from the credit bureaus to target their customers would can afford their product which in by all rights seems fair, they can’t force you to buy their product after all.

Nonpayment of this debt drops your credit score dramatically when it occurs and then slowly effects your credit less as time goes on. Doing what’s called a “Deed in Lieu” is basically they are agreeing to just sign away your rights to the timeshare and allow the lender to take back control and the interest in the property back.

This is where the article does not elaborate, just like a car you decide you don’t want or because you found out the “sales person or dealer” lied to you. Calling the lender and yelling does no good as all they did was lend you money to purchase the product.

If these timeshare companies use such high pressure tactics to get you to buy that means it is very difficult to sell them so why agree to take it back? They were already paid by the lender. It’s like a car repossession, so they can sell it again and again. See the huge profit in this???

When you stop making payments it starts hurting your credit of course. The above deed in lieu I mentioned is the lender releasing you from the debt to take back the property rights. In the coding of the credit bureaus which ranges from 0-9 there is no code for “deed in lieu” as the article mentions. So if you are lucky enough to get them to agree to a deed in lieu and make all payments on time your score WILL NOT change.

THE PROBLEM is future lenders look at that like a foreclosure which as of now there is a 3 year rule (with some exceptions) from buying another home. So it does not have to say foreclosure but if a lender sees “settled on account” or “short sale” or even “paid for less” then a future mortgage lender and underwriter view this as a home loan agreement you got into and then could not make the payments and had to give the rights back to the 1st lien holder, make sense now?

HOWEVER it all depends on the coding and wording on the reporting of the account on your credit & how it’s reported so it’s possible it can get overlooked by a future lender.

Any major purchase which this falls under requires some research and scrutiny. If you can’t take the paperwork home or have your attorney review the paperwork (Want high quality attorneys practically free just shoot me an email) and then look at your budget and plan for something to go wrong so if it did can you still afford the payment. That is a major question you need to ask yourself.

I’m not saying this is a bad idea but it’s something that requires more research than a 90 minute tour allows with 60 minutes of hard selling so don’t fall into the “act now” trap.

NOTE: a 30 day recent late payment can drop your credit score anywhere typically from 60-90 points depending on the rest of your credit file.

*** Want to learn more about how the credit system works? Buy my book for easy to understand concepts of how credit works and how lenders look at you at