The Real Problem with Disputes
Credit bureau disputes are the essential backbone of every successful credit repair program. And almost without exception it is necessary to start the process with these disputes. But if your efforts are confined only to disputing your issues with the credit bureaus you are virtually guaranteed to be disappointed.
Hitting the Credit Repair Wall
If you send a dispute letter to the credit bureaus you will receive a response back within thirty days or so. You might be excited to see that some of the problem items have been removed. You are also likely to see that some of the items that you have questioned have been verified. This can be frustrating. What is the next step? You might think that a second dispute is in order, and you may be right. Or you may be wrong. Read carefully. Has the credit bureau asked you to address all future inquiries to the original creditor? If so you may discover that additional credit bureau disputes produce no results.
Moving On
Many consumers in search of professional credit repair services will find an ample supply of credit repair companies offering a basic low cost program that consists entirely of credit bureau disputes. What happens to this consumer when the credit bureaus ask you to direct future inquiries to the original creditor? There are two possibilities.
The End of the Road
If you sign up for a credit repair program that only offers credit bureau disputes there is almost zero likelihood that you will end up as a satisfied customer. After the first round of disputes you may get few additional results. Or, if the company that you have chosen does offer additional levels of service you will probably find it necessary to upgrade to a more expensive version of the program in order to get the results that you desire. The truth is that the dispute only version of the program should never have been offered.
An Honest Approach
Remember that I started by saying that credit bureau disputes are the essential backbone of every successful credit repair program. It is so. In fact, it’s absolutely logical to start your dispute process with the credit bureaus. But to stop there would be like putting your socks on and then imagining that you are fully dressed. A truly effective credit repair program will seamlessly move from credit bureau disputes to creditors as a natural part of the process. Collection agencies can be challenged as needed in the same way.
The Educated Consumer
Credit Repair can and will produce fantastic results if done in a competent and comprehensive manner. Would you go to dinner at a restaurant that only cooks the food half way? Would you hire an auto mechanic that takes your engine apart but doesn’t quite put it back together again? Of course not! Make sure that your credit repair company will complete the job that you hired them for.
A Smooth Process
It is our opinion that a credit repair program should be inclusive of every step that is necessary to produce the final desired result. And the credit repair professional should be armed with every tool needed to do the job. We believe that the process should be offered as a unified whole. Our customers hire us for the most important reasons in the world. Their goals are inseparable from the quality of their financial life. We believe that credit should be taken seriously.
Beyond the Dispute
A comprehensive dispute process encompassing the credit bureaus, creditors, and even collection agencies is essential for success. But it is also equally imperative that these activities occur in the context of a complete understanding of both the credit scoring model and the way creditors view credit in making a decision. I cannot emphasize this enough! A good credit repair company always has their customer’s goals in mind. You do not want to complete a credit repair program and discover that your scores have suffered or that you don’t meet lenders criteria for credit content. When selecting a credit repair company make sure that they have the universal perspective that will produce the real results that you want. It turns out that the details can make all of the difference in the world.
Copyright © 2007 Power Mortgage Corp. All Content. All Rights Reserved.
Tuesday, June 26, 2007
Wednesday, June 20, 2007
Awesome Benefits of Credit Repair
What Do You Want From Life?
Do you own a home? Do you have the security of a savings account? Can you afford to set aside a percentage of your take-home pay for investment? Everything that you do in life is connected to your credit report. There is nothing that can have as significant an impact on your life, and ultimately on your financial freedom. It’s worth taking a close look.
The Interest Rate Connection
Most people that embark on a program of credit repair have a single and valuable short term goal in mind. The most common goal is home ownership. In many cases consumers with credit issues simply can’t qualify for mortgage financing. These individuals would like to improve their credit scores enough to obtain mortgage approval. There are also a large number of people in credit repair programs that currently own homes but due to credit issues received expensive sub-prime financing. They would like to improve their credit scores enough to refinance into a better mortgage and reduce their payments.
Building Personal Wealth
Both of these goals are valid. Historically home ownership has been the foundation of almost all personal wealth. Home ownership is also likely to be the largest financial obligation that you will have in your life. And the quality of your credit will determine the size of the monthly payment associated with home ownership. The importance of this connection is enormous.
Home Ownership Costs and Benefits
Homeowners with sub-prime mortgage financing typically pay a premium of up to two percent on their mortgage rate. This interest premium on a typical $200,000 mortgage amounts to $333 per month, or $4,000 per year. In addition, sub prime borrowers are usually limited to some form of adjustable rate financing that often results in additional premium costs to them over time. There are many benefits to home ownership that may outweigh these extra costs. But there are also actions that you can take to eliminate the extra costs and the looming adjustable rate adjustments as soon as possible.
Credit Repair Works
Don’t underestimate the power of credit repair. You would do yourself a horrible disservice by ignoring the potential improvement in your credit report that can result from an informed review of the content of your credit and a systematic program of repair. Dealing with the credit bureaus can be challenging, but if you take some time you can learn how to do this yourself, or you can hire a reputable credit repair company.
Enormous Benefits
What is credit repair worth to you? The case above is pretty typical. An improvement in your credit score may very well save you in excess of $333 per month. What would this do for your life? If you were to deposit that $333 each month into a money-market account earning 5%, in ten years your account would have grown to $51,000. In twenty years this same account would have a balance of $136,000. Not a bad return on your credit repair efforts.
The Tip of the Iceberg
If instead of investing your monthly savings in a money-market account you were to apply that $333 each month to the principle balance on your new mortgage, assuming an interest rate of 6% you will pay off your mortgage in seventeen years instead of thirty. Would you enjoy being mortgage free? What if I were to tell you that your mortgage is just the tip of the iceberg? Do you want to know the real benefit of great credit? Consider every single thing that your credit will affect. Think about your auto loans, credit cards, personal loans, and equity lines. The math is staggering.
Take Action
It’s up to you. Make sure that your credit is every bit as good as it can possibly be. Don’t let anything stand in the way of taking action. You can undertake a program of credit repair on your own. Or you can check out a couple of good credit repair companies. Speak to them on the phone. Ask questions. They should have many years of experience in dealing with the credit bureaus and be experts in the field of credit scoring. There is so much to gain. Be proactive.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Do you own a home? Do you have the security of a savings account? Can you afford to set aside a percentage of your take-home pay for investment? Everything that you do in life is connected to your credit report. There is nothing that can have as significant an impact on your life, and ultimately on your financial freedom. It’s worth taking a close look.
The Interest Rate Connection
Most people that embark on a program of credit repair have a single and valuable short term goal in mind. The most common goal is home ownership. In many cases consumers with credit issues simply can’t qualify for mortgage financing. These individuals would like to improve their credit scores enough to obtain mortgage approval. There are also a large number of people in credit repair programs that currently own homes but due to credit issues received expensive sub-prime financing. They would like to improve their credit scores enough to refinance into a better mortgage and reduce their payments.
Building Personal Wealth
Both of these goals are valid. Historically home ownership has been the foundation of almost all personal wealth. Home ownership is also likely to be the largest financial obligation that you will have in your life. And the quality of your credit will determine the size of the monthly payment associated with home ownership. The importance of this connection is enormous.
Home Ownership Costs and Benefits
Homeowners with sub-prime mortgage financing typically pay a premium of up to two percent on their mortgage rate. This interest premium on a typical $200,000 mortgage amounts to $333 per month, or $4,000 per year. In addition, sub prime borrowers are usually limited to some form of adjustable rate financing that often results in additional premium costs to them over time. There are many benefits to home ownership that may outweigh these extra costs. But there are also actions that you can take to eliminate the extra costs and the looming adjustable rate adjustments as soon as possible.
Credit Repair Works
Don’t underestimate the power of credit repair. You would do yourself a horrible disservice by ignoring the potential improvement in your credit report that can result from an informed review of the content of your credit and a systematic program of repair. Dealing with the credit bureaus can be challenging, but if you take some time you can learn how to do this yourself, or you can hire a reputable credit repair company.
Enormous Benefits
What is credit repair worth to you? The case above is pretty typical. An improvement in your credit score may very well save you in excess of $333 per month. What would this do for your life? If you were to deposit that $333 each month into a money-market account earning 5%, in ten years your account would have grown to $51,000. In twenty years this same account would have a balance of $136,000. Not a bad return on your credit repair efforts.
The Tip of the Iceberg
If instead of investing your monthly savings in a money-market account you were to apply that $333 each month to the principle balance on your new mortgage, assuming an interest rate of 6% you will pay off your mortgage in seventeen years instead of thirty. Would you enjoy being mortgage free? What if I were to tell you that your mortgage is just the tip of the iceberg? Do you want to know the real benefit of great credit? Consider every single thing that your credit will affect. Think about your auto loans, credit cards, personal loans, and equity lines. The math is staggering.
Take Action
It’s up to you. Make sure that your credit is every bit as good as it can possibly be. Don’t let anything stand in the way of taking action. You can undertake a program of credit repair on your own. Or you can check out a couple of good credit repair companies. Speak to them on the phone. Ask questions. They should have many years of experience in dealing with the credit bureaus and be experts in the field of credit scoring. There is so much to gain. Be proactive.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Tuesday, June 12, 2007
Credit Repair and the American Dream
A Great Investment
Home ownership has always been considered an integral part of the American Dream. Over the last fifty years those that were able to realize this dream have experienced a great financial benefit. Home ownership, in fact, has contributed more to the wealth of the individual than any other investment. But there is another side to home ownership; it is also the most significant financial obligation that most people will ever undertake. If managed properly home ownership can be a source of great pleasure. If mismanaged, the results can be devastating.
Better Rate More Choice
I have helped people repair and restore their credit reports since 1989. The most common concern amongst our customers has always been the impact that their credit report will have on the mortgage application process. The relationship between your credit and your mortgage is simple; the better your credit, the lower your interest rate and the more choice you will have among mortgage programs.
The Potential of Credit Repair
If you have had credit issues in the past it is essential to your financial life that you have a very clear understanding of how credit repair can help get you back on solid financial ground again. To understand the potential of credit repair there is a myth that needs to be dispelled. This myth is that you are the only one who can repair your own credit. This is a line that was originally promulgated by the credit bureaus and is now parroted by others.
Can You Do it Yourself?
The motivation of the credit bureaus to sell the do-it-yourself campaign was obvious to those of us in the credit repair business. The credit bureaus are well aware of the fact that the vast majority of individuals that undertake the effort to repair their own credit do not have the time or tenacity to understand the system. And without a proper understanding most people will quit out of frustration, or give up believing that they have done everything that can be done. Either way, the credit bureaus will save time and money.
The Role of the Credit Repair Professional
All professions provide the benefit of a mastery of their own field. Although it is certainly true that you could repair your own credit, it is equally true that you could make your own clothes or repair your own car. The economy thrives on the diversity of expertise that is offered in the marketplace. Those that do not have the time or energy to do the extensive research needed to do a job properly can hire someone else to do the work for them. A credit repair professional offers the benefit of his experience in dealing with the three credit bureaus, creditors, and collection agencies. He should also have an in depth understanding of everything that can have an impact on your credit score.
Improving Your Credit Scores
Would you like to purchase a home or refinance to a lower interest rate? The mortgage that you are able to obtain will be entirely dependant on the content of your credit report. As a credit repair professional I speak to people daily who have been told that they either cannot qualify for a mortgage due to their credit, or only qualify for a very expensive sub-prime mortgage. In our examination of their credit reports we often discover that there are a significant number of errors that are depressing their credit scores dramatically.
Putting Your Credit to Work for You
Much of the misreported information that appears on credit reports goes unrecognized. Items such as duplicate accounts, understated high credit limits, and misstated account opening dates are often ignored because they are not derogatory per se. These items along with the obvious erroneous derogatory information can all be cleaned up. And the results can make the difference between an affordable mortgage and a stressful monthly payment.
Choose Carefully
The American Dream is achievable and it depends on your credit. If you have the time and inclination to learn credit repair yourself you should make the effort. If you do not feel up to the task you should hire someone to get the job done for you. And, in making the decision you should remember the potential impact that your credit can have on your life. You work hard for your money. Make sure that your credit works just as hard for you.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Home ownership has always been considered an integral part of the American Dream. Over the last fifty years those that were able to realize this dream have experienced a great financial benefit. Home ownership, in fact, has contributed more to the wealth of the individual than any other investment. But there is another side to home ownership; it is also the most significant financial obligation that most people will ever undertake. If managed properly home ownership can be a source of great pleasure. If mismanaged, the results can be devastating.
Better Rate More Choice
I have helped people repair and restore their credit reports since 1989. The most common concern amongst our customers has always been the impact that their credit report will have on the mortgage application process. The relationship between your credit and your mortgage is simple; the better your credit, the lower your interest rate and the more choice you will have among mortgage programs.
The Potential of Credit Repair
If you have had credit issues in the past it is essential to your financial life that you have a very clear understanding of how credit repair can help get you back on solid financial ground again. To understand the potential of credit repair there is a myth that needs to be dispelled. This myth is that you are the only one who can repair your own credit. This is a line that was originally promulgated by the credit bureaus and is now parroted by others.
Can You Do it Yourself?
The motivation of the credit bureaus to sell the do-it-yourself campaign was obvious to those of us in the credit repair business. The credit bureaus are well aware of the fact that the vast majority of individuals that undertake the effort to repair their own credit do not have the time or tenacity to understand the system. And without a proper understanding most people will quit out of frustration, or give up believing that they have done everything that can be done. Either way, the credit bureaus will save time and money.
The Role of the Credit Repair Professional
All professions provide the benefit of a mastery of their own field. Although it is certainly true that you could repair your own credit, it is equally true that you could make your own clothes or repair your own car. The economy thrives on the diversity of expertise that is offered in the marketplace. Those that do not have the time or energy to do the extensive research needed to do a job properly can hire someone else to do the work for them. A credit repair professional offers the benefit of his experience in dealing with the three credit bureaus, creditors, and collection agencies. He should also have an in depth understanding of everything that can have an impact on your credit score.
Improving Your Credit Scores
Would you like to purchase a home or refinance to a lower interest rate? The mortgage that you are able to obtain will be entirely dependant on the content of your credit report. As a credit repair professional I speak to people daily who have been told that they either cannot qualify for a mortgage due to their credit, or only qualify for a very expensive sub-prime mortgage. In our examination of their credit reports we often discover that there are a significant number of errors that are depressing their credit scores dramatically.
Putting Your Credit to Work for You
Much of the misreported information that appears on credit reports goes unrecognized. Items such as duplicate accounts, understated high credit limits, and misstated account opening dates are often ignored because they are not derogatory per se. These items along with the obvious erroneous derogatory information can all be cleaned up. And the results can make the difference between an affordable mortgage and a stressful monthly payment.
Choose Carefully
The American Dream is achievable and it depends on your credit. If you have the time and inclination to learn credit repair yourself you should make the effort. If you do not feel up to the task you should hire someone to get the job done for you. And, in making the decision you should remember the potential impact that your credit can have on your life. You work hard for your money. Make sure that your credit works just as hard for you.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Thursday, June 7, 2007
Credit Repair: Overcoming Fear
Overcoming Avoidance
There is nothing funny about credit repair fear. Well, maybe it would be humorous if the side effect were not so potentially devastating. Do you know anyone who can’t seem to get themselves to the dentist? Years slip by. Eventually they make their appearance at the dentist office holding their head and moaning with the pain of a toothache. Millions of consumers have the same relationship with their credit reports.
Everything Counts
I wince at the sound of the dentist drill. I understand. But there are some things that need to be taken care of. If you wait until there is a serious problem before taking action you may discover that the price of inaction is well beyond your means. Your credit report affects everything in your life. A regular course of maintenance is in order. Did you know that over 70% of all credit reports contain errors? Did you know that even innocuous looking errors like account opening dates can have a major impact on your credit?
The Ripple Effect
In a recent blog entry I wrote, “You should not overlook the myriad items that are determined by your credit scores. Your automobile loan payment, like your mortgage payment, ripples through your lifestyle by limiting other purchase choices that you make. Credit cards, personal loans, debt consolidation loans, home equity loans; all count.”
It all Adds Up
This ripple effect should not be underestimated. A positive swing of fifty points in your credit score can translate into thousands of extra dollars in your pocket each year. Every single dollar of savings is a dollar that is available for other things that you would like to do with your life. The right decisions about maintaining your credit report can easily send you on a Caribbean vacation, pay for your night classes, send your children to a better school, or maybe just get you that new big screen television that you want.
The First Easy Step
So, given the importance of your credit, it would make sense to find a way to steel your nerves for the job of a comprehensive review of all three of your credit reports. Let’s take the first step. The Fair and Accurate Credit Transactions Act, in response to the frightening number of errors that continue to appear on consumer’s credit reports forced all three credit bureaus to provide a free copy of your report each year. Take advantage of this law. Go to annualcreditreport.com and get all three reports. Once you have your reports you are on your way. Don’t think too far ahead. There are a couple of handy tricks that will make the job easy, even for those with a paralyzing fear of paperwork.
Organization is the Key
The key to getting through the job of credit repair is organization. Don’t bother trying to deal with all three reports at one time. Sit down with one report. Get a nice clean legal size pad and a pen. Don’t jump ahead to the derogatory section. Start at the top and work your way down line by line. Check every thing. Account opening dates, high credit limits, duplicate accounts, current balances; all are important.
One Report at a Time
Each time you find something that is wrong make a note on your pad. Each report comes with dispute instructions. Follow the instructions and dispute every item that you noted. I suggest that you leave the other two reports for another day. There are no economies of scale to assaulting all three reports at one time. Each bureau needs to be attacked individually.
Less is More
Take your time and address each dispute as clearly as you can. It should be helpful to know that the credit bureaus do not want to hear the story of your life. They also do not want to hear any explanations. Just say what you need to say. Be neat. If you take your time the experience should be painless and you should get very satisfactory results.
It’s Your Life
If you simply can’t make your way though the job you should hire a good credit repair company to do the job for you. Credit repair should be very affordable and should never lock you in for any pre-determined period of time. Your credit is very important. You work hard for your money. Make sure that your credit report is working just as hard for you.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
There is nothing funny about credit repair fear. Well, maybe it would be humorous if the side effect were not so potentially devastating. Do you know anyone who can’t seem to get themselves to the dentist? Years slip by. Eventually they make their appearance at the dentist office holding their head and moaning with the pain of a toothache. Millions of consumers have the same relationship with their credit reports.
Everything Counts
I wince at the sound of the dentist drill. I understand. But there are some things that need to be taken care of. If you wait until there is a serious problem before taking action you may discover that the price of inaction is well beyond your means. Your credit report affects everything in your life. A regular course of maintenance is in order. Did you know that over 70% of all credit reports contain errors? Did you know that even innocuous looking errors like account opening dates can have a major impact on your credit?
The Ripple Effect
In a recent blog entry I wrote, “You should not overlook the myriad items that are determined by your credit scores. Your automobile loan payment, like your mortgage payment, ripples through your lifestyle by limiting other purchase choices that you make. Credit cards, personal loans, debt consolidation loans, home equity loans; all count.”
It all Adds Up
This ripple effect should not be underestimated. A positive swing of fifty points in your credit score can translate into thousands of extra dollars in your pocket each year. Every single dollar of savings is a dollar that is available for other things that you would like to do with your life. The right decisions about maintaining your credit report can easily send you on a Caribbean vacation, pay for your night classes, send your children to a better school, or maybe just get you that new big screen television that you want.
The First Easy Step
So, given the importance of your credit, it would make sense to find a way to steel your nerves for the job of a comprehensive review of all three of your credit reports. Let’s take the first step. The Fair and Accurate Credit Transactions Act, in response to the frightening number of errors that continue to appear on consumer’s credit reports forced all three credit bureaus to provide a free copy of your report each year. Take advantage of this law. Go to annualcreditreport.com and get all three reports. Once you have your reports you are on your way. Don’t think too far ahead. There are a couple of handy tricks that will make the job easy, even for those with a paralyzing fear of paperwork.
Organization is the Key
The key to getting through the job of credit repair is organization. Don’t bother trying to deal with all three reports at one time. Sit down with one report. Get a nice clean legal size pad and a pen. Don’t jump ahead to the derogatory section. Start at the top and work your way down line by line. Check every thing. Account opening dates, high credit limits, duplicate accounts, current balances; all are important.
One Report at a Time
Each time you find something that is wrong make a note on your pad. Each report comes with dispute instructions. Follow the instructions and dispute every item that you noted. I suggest that you leave the other two reports for another day. There are no economies of scale to assaulting all three reports at one time. Each bureau needs to be attacked individually.
Less is More
Take your time and address each dispute as clearly as you can. It should be helpful to know that the credit bureaus do not want to hear the story of your life. They also do not want to hear any explanations. Just say what you need to say. Be neat. If you take your time the experience should be painless and you should get very satisfactory results.
It’s Your Life
If you simply can’t make your way though the job you should hire a good credit repair company to do the job for you. Credit repair should be very affordable and should never lock you in for any pre-determined period of time. Your credit is very important. You work hard for your money. Make sure that your credit report is working just as hard for you.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Subscribe to:
Posts (Atom)
