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:

wayne@waynethecreditguy.com

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 http://waynethecreditguy.com/waynes-store

Would you like to save 15% on your purchase today?

Would you like to save 15% on your purchase today?

You get store employees telling you this almost every day you go shopping, however now at this time of year it seems to get you to think about it a little bit more.

Before I continue if you’re not already a consistent reader of this let me give you a mini breakdown of my background. My name is Wayne Sanford, a credit expert now in this business almost 12 years. I have reviewed over 16,000 plus credit reports for consumers across the United States, 90% of them typically have a financial goal whether it is short term or within a year. These goals are usually buying/refinancing a home or purchasing a car.

Credit repair is a service, just like fixing your car, your plumbing or representing yourself in court. Sure you can do it yourself, but if it was as easy as the media and news articles out there make it seem to be everyone would have 700 + scores.

Fact is its not and the companies reporting against you or on you have teams of attorneys who have taken advantage of every little law to their advantage and credit repair ( if you have the right company) can do the same for you.

Now back to the sales pitch of getting a store card. I always advice a majority of my clients to say no, everyone knows credit is important but you do not realize truly how important credit is until its needed TODAY and then It’s too late.

Surprisingly as credit is a math equation which is based on logic it’s amazing sometimes how illogical the credit system can actually be. First let’s discuss some of the logical aspects.

The store employee asks you if you want to save 15% and apply/get a store card today. It’s not guaranteed that is the first thing i want to point out. Then your credit gets hit with a hard inquiry (an inquiry that can lower your credit score).

Now I will note it can lower the credit score it is not always the case , it is credit report specific as every credit report is unique.

Now if you are buying $1,000 worth of things I would say yes as that’s a savings of $150. But the odds are you are not buying that much.

Another question is how is your discipline? Many people cannot handle credit very well unless they have either really messed it up in the past or are lucky to have a parent or guardian who really drills home the concept of how truly important credit is.

This next part is the logical aspect of the credit system grading a credit card (revolving account). If you get a store card then the card can only be used at that store. A regular credit card (Visa, Mastercard, Discover, American Express) can be used all over at every store (at least the ones who accept it).

This logic dictates then that these types of cards will be graded at a higher level than a store card. Now a store card can actually stay in your drawer for years and not get closed as the holder believes eventually you will come in and use it. The other main cards will close your account after a certain time frame (each lender has their own timeline) if you have not used it for a while.

That is some of the pluses and minuses of each card. Now if you were thinking this blog will tell you exactly what to do it cannot. As I mentioned earlier each credit report has a different amount of data on it than the other credit reports on other people so it is unique and what affects one person one way will not affect the other the same way.

However, my overall advice on this subject matter? I usually say no to store credit cards.

So that’s it for today, hope those of you that get these offers just say no.

Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand:

How the “Real world of credit” works. wayne@waynethecreditguy.com

And of course if you need some credit work to increase your credit score or have credit questions just email me or call me today to discuss!

Wayne

When am I ready or NOT ready to buy a home

When am I ready or NOT ready to buy a home

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

However what I ALWAYS try to explain to people is the news media and government entities make it should like hiring a credit company is a waste of money think about it. IF it was as easy as they make it sound like EVERYONE would have 700 credit scores.

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

THIS WEEKS BLOG:

One of my many mottos’ is “I’m going to tell you the truth whether you like it or not.”

Over the years I am always surprised by getting credit reports to analyze of people wanting to buy a home “today”. And then a ten second review of their credit file tells me that perhaps many, many people really have no clue about some of the basics of home lending. Even the common sense type of things you would think someone would be aware of.

Many times it is typically “in hopes” of a lender tell them yes they are approved for a home loan. But let’s delve into just a little bit of what a lender wants to see and not see so if you are not a 700 credit score then reading this will save you time and headache.

We will first address some of the initial common sense things that should put a halt to any plans to buy a home to save you the aggravation of the documents and paperwork needed that has to be collected.

The first thing is if you are CURRENTLY late on any bills such as a car payment or credit cards. If you are stop right here!

A credit score tries to predict how you will pay your bills in the future (immediate and long term). So, how you pay your bills today count a lot more than how you paid them 5 years ago.

So think about it, if you were the lender how comfortable are you lending your money to someone who can’t pay their car payment on-time two months ago or is currently behind on a credit card bill with a $50 minimum payment?

The correlation of that to your credit score is equally devastating; one brand new late payment typically drops a credit score up to 70 points and possibly more depending on the individual credit report.

Credit is a math equation; it doesn’t take any job loss or sickness with any special consideration.

I have had people contact me asking for me to help them with their credit report so they can buy a home and they are behind literally all of their bills (reporting on their credit report) and also maxed out on all of their credit cards.

My first words to them (but said much more tactfully) is do you even have the money to pay me for my services if your behind all your bills. And if you do have the money to pay me then why are you not using that money to pay your bills?

I will tell you reading this and anyone I come across is if you remotely fit this profile then I will tell you like I have told others the following:

  • Catch up on your bills so your no longer behind
  • Continue to make a minimum of 6 months of on-time payments
  • Then call me and we will re-pull your credit report to assess the status of your credit file.

Buying a home is a huge commitment as well as it reaps a lot of benefits (tax breaks for one). So that means it is something you need to plan for.

Unless you are buying a home out in the country land and are using a USDA loan or you are a veteran using a VA loan these are the only two loans that finance 100% of the loan.

But you will still need money to pay some fees that come up leading up to getting the home loan.

The days of getting a home for no money down or $500 have basically fallen by the way side. Those types of loans are what caused the mortgage meltdown back in 2008-2009.

The 2 main types of loans out there are FHA loans and conventional loans (we will not be discussing jumbo loans in this blog today).

FHA loans require 3.5% of the house price down so for example if you’re buying a home for 100,000 you have to bring a check to the table for $3,500.00

A Conventional loan requires a 5% down payment so for the same loan the amount you pay is $5,000.00

HOWEVER, the obvious isn’t always the best so when you are ready to qualify then sit down with a loan officer and go over the interest rates for both and all the “fees” and then do a comparison to see which loan is best for you. Don’t take the loan officers worked for it ( SORRY loan officers reading this, not everyone is as ethical as you so people have to be careful!).

Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand.

how the “Real world of credit” works. wayne@waynethecreditguy.com

And of course if you need some credit work to increase your credit score then call me today to discuss!

“Time Warner” How they plan to screw you over

“Time Warner” How they plan to screw you over

BEING PROACTIVE!

Let me start this as I was recently told to do and introduce myself to any new readers of this blog.

My name is Wayne Sanford, I have been in the credit repair industry now for over 11 years. In that time I have diagnosed over 16, 000 credit reports for clients across the country. 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.

However what I ALWAYS try to explain to people is the news media and government entities make it should like hiring a credit company is a waste of money think about it. IF it was as easy as they make it sound like 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!

THIS WEEKS BLOG:

Ok, I did cover this in another blog from a general industry understanding but after too many times to count since then I have been dealing with SO MANY issues with this company I thought it best to focus on them and their HORRIBLE practices.

Of course let me officially start off by saying this is my opinion (my educated opinion that is) as a credit expert in this industry for over 11 years. So while many companies in this industry have these kind of issues I am focusing on the company that seems to be the worst of the bunch with what I am about to cover.

As time warner has locations throughout the U.S in your market typically they tell you to bring in your box to return the equipment so you are not charged as the equipment IS NOT YOURS so if you keep it will get charge and have no one to blame but yourself.

So like I have said before and will continue to say, understand that when it comes to credit and your credit report you are guilty until you can prove your innocence.

That means if you DO NOT save that stupid small piece of paper they give you as “proof” you returned your cable boxes when the debt collector comes a calling and puts a $800 collection on your credit report ( for est. 2-3 cable boxes) saying you never returned the cable boxes and you tell them you did they say;

“Sorry but our records show you did not so if you do not pay it this collection will hit your credit report and drop your credit score”.

And you can’t complain to Time Warner directly since its their records the debt collectors are using. So due to their poor tracking system you are literally held hostage.

To make matters worse it’s more like extortion with no benefit as most of them will report it as a paid collection and not delete the account from your credit report.

So if you are thinking of hiring a credit company to help you the first I (and hopefully they) will tell you is don’t do anything without talking to a credit professional first.

Of course I will then tell you if your calling someone other than me then PLEASE check out the company your calling and review and VERIFY their credentials.

So….

Now the main thing is how do you become proactive and not allow this to happen?

One major way is once the boxes are dropped off and you pay your final bill, give it a few days and then log into your online account and confirm the balance is $0.00 and then print out the page and then make lay a copy of the “little pink receipt” on it and MAKE SURE the #’s on it are legible or that will be issues years down the road.

Take that page and toss it in a box labeled as “receipts”.

So down the line when you get this phone call (and odds are you will) you can confidently tell the debt collector if they don’t have the collection account removed from your credit report you will sue them as you have DOCUMENTED PROOF that their information is incorrect and has to legally removed the collection if they have already reported it on your credit.

Personally I find it repulsive what they do the same way banks pay a check out of an old closed account of yours and then hit you with a “insufficient funds fee” but that’s a blog for another day.

The reality is these kind of “mistakes” generates millions of dollars to the company by screwing over the little guy who is ill equipped to deal with the training these “people” have based on the laws they try to take advantage of and the consumers total non-understanding of these or any protocols.

So that’s it for today, hope those of you with Time Warner or plan on getting them memorizes this future problem and helps you down the line.

Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand:

How the “Real world of credit” works. wayne@waynethecreditguy.com

And of course if you need some credit work to increase your credit score then call me today to discuss!

Wayne