Your credit score plays a very important part in your finances. Today, more than ever before, your three digit credit score can determine how much you pay in financing charges for virtually everything, from a car, to a home or refinance, or credit cards. Your credit score can even affect your insurance rates and whether you are hired for a job. Each of the three credit bureaus, Experian, Equifax, and TransUnion, produces their own version of your credit score. They will vary somewhat as each bureau uses a slightly different formula when calculating your credit score.
What's a Good Credit Score?
Credit scores from all three credit bureaus generally range between 450 and 850. The higher your credit score, the better chance you have of saving money. Typically, a credit score in the 700+ range will help you qualify for lower, preferred interest rates. Credit scores of 650 and below will make it harder for you to qualify for the lowest interest rates available. But don't get discouraged, your credit score can always be improved, and it can happen much faster than you think with positive credit habits.
Today, your credit score is used by more and more companies who rely on your credit score to successfully manage risk. Credit scores are a two-edged sword for consumers. A good credit score can save you money, A higher credit score can put you at a major financial disadvantage over the course of your life. It's important for you to maintain good credit habits: Pay your bills on time, don't carry too much debt, pay down the debts you have, and maintain a good, healthy mix of credit accounts: real estate, installment credit, credit cards, and retail/department store cards. Be smart. Use credit wisely.
www.dynamiccreditsolutions.com
888.299.9978
Wednesday, April 29, 2009
Saturday, September 13, 2008
Top Ten Reasons Why Mortgage Brokers Don't Use Credit Repair
On the surface, using these services seem to make so much sense you would assume everyone in the mortgage originating industry would be using these services. However, this is simply not the case! So the question is, why not?
First let's outline the top 10 reasons loan officers give for not using these services and then let's examine them in greater detail.
•1) Credit repair doesn't work!
•2) Credit repair makes a clients credit worse.
•3) When negative items are removed they come right back on.
•4) Removing old negative items does not improve score that much.
•5) I repair client's credit myself.
•6) It costs too much, my clients can't afford it.
•7) Almost everyone I work with has great credit.
•8) I don't trust people in the credit repair industry.
•9) The process takes too long and is a waste of time.
•10) Unless I can do the loan this month, I really don't care.
Credit repair doesn't work.
OK, so here is the bottom line, it does work! When you go on the internet and do a search on credit repair you will see links to a number of websites providing information on credit repair. If you have gone to these websites you know there are a couple of things repeated over and over again. The first is that accurate information cannot be removed from your credit report. Moreover, do not let anyone tell you that it can be. Secondly, there is nothing a credit repair company can do for you that you cannot do for yourself.
What you may not know is that these web sites are created or financed by the credit bureaus. So why are they spending money on these websites? The credit bureaus make money each time credit information is pulled. People with low scores or damaged credit have their credit pulled dramatically more often than those with good credit. Credit bureaus are fundamentally opposed to credit repair companies for one simple reason, it costs them money!
Dynamic Credit Solutions has years of experience in the credit repair industry. The credit bureaus hate us and our clients love us. We do not dispute that the client has these trade lines; we simply take the creditors and credit bureaus to produce the information that they must have to verify the debt. More specifically, they must prove that everything is exactly accurate. If they do not have the documentation or something is being reported incorrectly, by law they must remove it!
Knowing the specifics of the ever-changing laws is crucial. Now if the consumer knows the ins and outs of the laws as well as and has years of experience doing this work day in and day out they could possibly get the same results. They can also represent themselves in a court of law, do their own taxes, and sell their own homes. But they hire attorneys, accountants, and realtors everyday to get the job done most effectively and as fast as possible.
Credit repair can make a clients credit worse.
This is a common misconception. People often mistake credit repair for consumer credit counseling service. Nothing can be further from the reality. Consumer credit counseling almost always destroys a consumer's credit and credit score and should not be mistaken as credit repair done by a reputable credit repair company. Also, many of the consumer counseling services operate as "non-profit" entities and are subsidized by large credit companies (for example: credit card companies, banking and finance companies.)
When a credit counseling agency sets up a 12-36 month payment arrangement between a consumer and a creditor they are actually setting up 12-36 months of late payment history for the consumer. Even if the client makes the payments arranged by the consumer credit counseling service on time, those payments are reported to the credit bureaus as late payments. Dynamic Credit Solutions primary focus is credit score improvement. This is done by removing negative items on the client's credit report as well as educating the client on how to use credit to positively affect the credit score. The value of our advice can last a lifetime.
When negative items are removed they come right back on.
After we have removed negative items from a credit report it is always possible that the original creditor can re-report the negative item. However, this is rarely the case. Given that the original creditor generally will only hold the debt for 4-6 months, they do not waste time or the money to check on these items and re-report them. What typically happens is that the debt is sold or transferred to a collection agency which will re-report them in an effort to pressure the client to pay the debt. When this occurs we can go back and dispute the items under the same dispute that removed them in the first place. For this reason the term of our credit score improvement service membership with our client is one year.
Removing old negative items does not improve score that much.
This is another common misconception that is totally untrue. While it is true that negative information is weighted meaning the older it is the less negative impact it will have on the credit score. Common sense should tell us, the very fact that this information remains on the credit report for 7-10 years means it is affecting the score in a negative way until it is removed from the credit report. Although many credit repair companies focus only on the dispute process of a consumer's past derogatory trade lines, Dynamic Credit Solutions adds a comprehensive educational program to be prepared for the future. Additionally, if a client does not have any or few positive trade lines in their credit files, we can advise them on the best and quickest methods of accomplishing this.
I repair my client's credit myself.
Consider this, as a loan officer you are paid to originate loans. The more loan volume you write the more money you make. A simple business concept called leverage dictates that the way to make the most money is to spend your time doing the things that generate the most income for your business. For you that means meeting with clients and taking applications. Show me a loan officer who processes their own loans and I'll show you a loan officer who does very few loans. Focus on the things that pay you the most money for the time you spend doing them and delegate the other tasks to people who are proficient at those things. How many times have you spent hours trying to repair someone's credit only to be unsuccessful or to have them go somewhere else to get the loan?
Allow Dynamic Credit Solutions to be your, "Ace in the Hole" for all of your short term and long term credit score improvement needs.
It costs too much, my clients cannot afford it.
Given the tremendous impact credit score has on a person's overall financial life, the question really should be, how can your client afford not to contract with Dynamic Credit Solutions? Credit affects your client's mortgage payments, car payments, credit card payments, as well as auto and homeowners insurance, and the list goes on. If we improve your clients score 50-100 points how much can you lower their monthly mortgage payment?
Generally speaking, however much you are able to lower the mortgage payments we can assist the client in lowering the cost of their monthly obligations by an equal amount. So, if you lower the mortgage payments by $250 per month we can probably lower the other bills by $250 a month for a total of $500 a month. This is $6000 every year because of credit!
Almost everyone I work with has great credit.
A few years ago I would have looked upon this as a legitimate objection; today this statement is simply disingenuous. The reality is, if you have been in the mortgage business for 10 years or more you are seeing more bad credit reports than you probably ever have. With the coming changes in the bankruptcy laws this trend will only increase. Currently almost 75% of people in the market for loans are candidates for sub-prime mortgage products.
Dynamic Credit Solutions can fix these broken people for you while you are doing other more productive things. When they are fixed you will be the first to know (even before the client) by our notification systems. You now have a client who thinks you walk on water as well as have another transaction that otherwise may have been a "no deal."
I don't trust people in the credit repair industry.
Every industry has people who do not operate in the most professional manner. We at Dynamic Credit Solutions look upon this as a tremendous opportunity to distinguish ourselves. In addition, a lot of the negative stigma in the credit industry about credit repair companies is hyped up by none other than the credit bureaus themselves. Think about it for a minute, if a consumer dispute by a consumer or a credit repair company is going to add overhead to the credit bureaus operations and if the dispute process is successful, then the consumer will not be applying for credit as often because they do not need it as much, with this reducing the credit reports sold by the credit bureaus, is it any wonder that the credit bureaus would create bad press about credit repair companies. Dynamic Credit Solutions clearly understands and abides by the regulatory requirements for our industry, both federal and state. Our goal is to enhance your credibility with your clients as opposed to undermining it. Give us a try; see if we are not the most professional credit score improvement company you have ever worked with.
The process takes too long and is a waste of time.
There are many credit repair companies who only work on 1-3 negative trade lines at a time, one bureau at a time, until they are removed. If the client has 20-40 negative trade lines which is not uncommon, this could take 2-3 years. Given this, we understand why you might feel the process takes too long. At Dynamic Credit Solutions we pride ourselves on speed. Like a championship football defense in the blitz mode, we attack every negative trade line at the same time to get the greatest impact in the shortest period of time.
Unless I can write the loan this month, I really don't care.
Generally, people who make this statement will not be in the business very long. That being said, we do understand why loan officers feel this way. The constant pressure to produce can be unbearable. So let us address this question with honesty. The reality is, in certain situations we may be able to bring the score up in 30-45 days to get a loan done. Bear in mind if it can be done we are uniquely qualified to get it done. The goal of service is to increase the scores 50-100 points in 90-120 days. This may allow you to do a band-aid loan today and guarantee a second transaction in the future. In addition, the long term loyalty this can create between you and your client will keep them coming back for life and referring you to all their friends, family, co-workers, etc ...
This is why when you understand Dynamic Credit Solutions you don't send us people because you have nothing better to do with them, rather you send your clients to Dynamic Credit Solutions because you care enough about them to do so.
The final note is you can write 1-5 additional loans every month by working with Dynamic Credit Solutions! What are you waiting for?
www.DynamicCreditSolutions.com
First let's outline the top 10 reasons loan officers give for not using these services and then let's examine them in greater detail.
•1) Credit repair doesn't work!
•2) Credit repair makes a clients credit worse.
•3) When negative items are removed they come right back on.
•4) Removing old negative items does not improve score that much.
•5) I repair client's credit myself.
•6) It costs too much, my clients can't afford it.
•7) Almost everyone I work with has great credit.
•8) I don't trust people in the credit repair industry.
•9) The process takes too long and is a waste of time.
•10) Unless I can do the loan this month, I really don't care.
Credit repair doesn't work.
OK, so here is the bottom line, it does work! When you go on the internet and do a search on credit repair you will see links to a number of websites providing information on credit repair. If you have gone to these websites you know there are a couple of things repeated over and over again. The first is that accurate information cannot be removed from your credit report. Moreover, do not let anyone tell you that it can be. Secondly, there is nothing a credit repair company can do for you that you cannot do for yourself.
What you may not know is that these web sites are created or financed by the credit bureaus. So why are they spending money on these websites? The credit bureaus make money each time credit information is pulled. People with low scores or damaged credit have their credit pulled dramatically more often than those with good credit. Credit bureaus are fundamentally opposed to credit repair companies for one simple reason, it costs them money!
Dynamic Credit Solutions has years of experience in the credit repair industry. The credit bureaus hate us and our clients love us. We do not dispute that the client has these trade lines; we simply take the creditors and credit bureaus to produce the information that they must have to verify the debt. More specifically, they must prove that everything is exactly accurate. If they do not have the documentation or something is being reported incorrectly, by law they must remove it!
Knowing the specifics of the ever-changing laws is crucial. Now if the consumer knows the ins and outs of the laws as well as and has years of experience doing this work day in and day out they could possibly get the same results. They can also represent themselves in a court of law, do their own taxes, and sell their own homes. But they hire attorneys, accountants, and realtors everyday to get the job done most effectively and as fast as possible.
Credit repair can make a clients credit worse.
This is a common misconception. People often mistake credit repair for consumer credit counseling service. Nothing can be further from the reality. Consumer credit counseling almost always destroys a consumer's credit and credit score and should not be mistaken as credit repair done by a reputable credit repair company. Also, many of the consumer counseling services operate as "non-profit" entities and are subsidized by large credit companies (for example: credit card companies, banking and finance companies.)
When a credit counseling agency sets up a 12-36 month payment arrangement between a consumer and a creditor they are actually setting up 12-36 months of late payment history for the consumer. Even if the client makes the payments arranged by the consumer credit counseling service on time, those payments are reported to the credit bureaus as late payments. Dynamic Credit Solutions primary focus is credit score improvement. This is done by removing negative items on the client's credit report as well as educating the client on how to use credit to positively affect the credit score. The value of our advice can last a lifetime.
When negative items are removed they come right back on.
After we have removed negative items from a credit report it is always possible that the original creditor can re-report the negative item. However, this is rarely the case. Given that the original creditor generally will only hold the debt for 4-6 months, they do not waste time or the money to check on these items and re-report them. What typically happens is that the debt is sold or transferred to a collection agency which will re-report them in an effort to pressure the client to pay the debt. When this occurs we can go back and dispute the items under the same dispute that removed them in the first place. For this reason the term of our credit score improvement service membership with our client is one year.
Removing old negative items does not improve score that much.
This is another common misconception that is totally untrue. While it is true that negative information is weighted meaning the older it is the less negative impact it will have on the credit score. Common sense should tell us, the very fact that this information remains on the credit report for 7-10 years means it is affecting the score in a negative way until it is removed from the credit report. Although many credit repair companies focus only on the dispute process of a consumer's past derogatory trade lines, Dynamic Credit Solutions adds a comprehensive educational program to be prepared for the future. Additionally, if a client does not have any or few positive trade lines in their credit files, we can advise them on the best and quickest methods of accomplishing this.
I repair my client's credit myself.
Consider this, as a loan officer you are paid to originate loans. The more loan volume you write the more money you make. A simple business concept called leverage dictates that the way to make the most money is to spend your time doing the things that generate the most income for your business. For you that means meeting with clients and taking applications. Show me a loan officer who processes their own loans and I'll show you a loan officer who does very few loans. Focus on the things that pay you the most money for the time you spend doing them and delegate the other tasks to people who are proficient at those things. How many times have you spent hours trying to repair someone's credit only to be unsuccessful or to have them go somewhere else to get the loan?
Allow Dynamic Credit Solutions to be your, "Ace in the Hole" for all of your short term and long term credit score improvement needs.
It costs too much, my clients cannot afford it.
Given the tremendous impact credit score has on a person's overall financial life, the question really should be, how can your client afford not to contract with Dynamic Credit Solutions? Credit affects your client's mortgage payments, car payments, credit card payments, as well as auto and homeowners insurance, and the list goes on. If we improve your clients score 50-100 points how much can you lower their monthly mortgage payment?
Generally speaking, however much you are able to lower the mortgage payments we can assist the client in lowering the cost of their monthly obligations by an equal amount. So, if you lower the mortgage payments by $250 per month we can probably lower the other bills by $250 a month for a total of $500 a month. This is $6000 every year because of credit!
Almost everyone I work with has great credit.
A few years ago I would have looked upon this as a legitimate objection; today this statement is simply disingenuous. The reality is, if you have been in the mortgage business for 10 years or more you are seeing more bad credit reports than you probably ever have. With the coming changes in the bankruptcy laws this trend will only increase. Currently almost 75% of people in the market for loans are candidates for sub-prime mortgage products.
Dynamic Credit Solutions can fix these broken people for you while you are doing other more productive things. When they are fixed you will be the first to know (even before the client) by our notification systems. You now have a client who thinks you walk on water as well as have another transaction that otherwise may have been a "no deal."
I don't trust people in the credit repair industry.
Every industry has people who do not operate in the most professional manner. We at Dynamic Credit Solutions look upon this as a tremendous opportunity to distinguish ourselves. In addition, a lot of the negative stigma in the credit industry about credit repair companies is hyped up by none other than the credit bureaus themselves. Think about it for a minute, if a consumer dispute by a consumer or a credit repair company is going to add overhead to the credit bureaus operations and if the dispute process is successful, then the consumer will not be applying for credit as often because they do not need it as much, with this reducing the credit reports sold by the credit bureaus, is it any wonder that the credit bureaus would create bad press about credit repair companies. Dynamic Credit Solutions clearly understands and abides by the regulatory requirements for our industry, both federal and state. Our goal is to enhance your credibility with your clients as opposed to undermining it. Give us a try; see if we are not the most professional credit score improvement company you have ever worked with.
The process takes too long and is a waste of time.
There are many credit repair companies who only work on 1-3 negative trade lines at a time, one bureau at a time, until they are removed. If the client has 20-40 negative trade lines which is not uncommon, this could take 2-3 years. Given this, we understand why you might feel the process takes too long. At Dynamic Credit Solutions we pride ourselves on speed. Like a championship football defense in the blitz mode, we attack every negative trade line at the same time to get the greatest impact in the shortest period of time.
Unless I can write the loan this month, I really don't care.
Generally, people who make this statement will not be in the business very long. That being said, we do understand why loan officers feel this way. The constant pressure to produce can be unbearable. So let us address this question with honesty. The reality is, in certain situations we may be able to bring the score up in 30-45 days to get a loan done. Bear in mind if it can be done we are uniquely qualified to get it done. The goal of service is to increase the scores 50-100 points in 90-120 days. This may allow you to do a band-aid loan today and guarantee a second transaction in the future. In addition, the long term loyalty this can create between you and your client will keep them coming back for life and referring you to all their friends, family, co-workers, etc ...
This is why when you understand Dynamic Credit Solutions you don't send us people because you have nothing better to do with them, rather you send your clients to Dynamic Credit Solutions because you care enough about them to do so.
The final note is you can write 1-5 additional loans every month by working with Dynamic Credit Solutions! What are you waiting for?
www.DynamicCreditSolutions.com
Monday, August 25, 2008
The Truth About Credit Repair.......What Can And Can't Be Done!
Now contrary to what the credit bureaus would like you to believe, Credit repair does work and can work for 100% of people in most circumstances. This is, of course, provided you are getting the best advice and have a trustworthy professional working on your case.
The reason credit repair has received such a bad name is due to the abundance of scam artists who flock to the easy money made available by people desperate for this type of service. This unfortunate reality leads the credit bureaus and the FTC to make blanket, untrue statements such as, "Credit repair does not work ever and there is nothing a credit repair company can do for you that you can't do for yourself."
Given that more than 90% of credit repair companies are con artists, promising the world and then disappearing when you pay, the credit bureaus and the FTC are forced to make such bold statements.
It would be impossible for them to explain the truth to consumers without causing them to make a bad choice that would result in getting conned. As a result, the credit bureaus and the FTC must adhere to the "credit repair doesn't work" position.
But there is a caveat.
Even if you have a true master of credit repair on your side you have to take into account that sometimes the other players perform in a way that throws the master of credit repair off his game.
Take Shaquille O'Neal. Although he has the ability to win every game for his team there are going to be times when the other team has a formation that takes him off his game and causes his results to be less than optimal. Given that fact, you still cannot predict to any level of certainty whether or not he will perform well or poorly the next time he faces that team.
Credit repair is similar. Sometimes the opposing side shows up strong, other times they don't. Even if you follow the same approach with every situation that arises when doing credit repair, your results will still vary due to the other players involved. Unfortunately it's the inconsistency of the industry, not the inconsistency of skill level.
So here are 2 situations where it is almost impossible for credit repair to help someone needing results within 6 months to a year.
1. If more than 50% of the negative accounts showing on a credit report appear as unpaid collections, charge-offs, repossessions, or foreclosures and you do not have the money to either pay the accounts in full or settle them, then there is not much that can be done in a 3-6 month time frame if you need more than a 30 point increase.
Due to the negative accounts remaining unpaid, these items will simply reappear on your report once removed. In many circumstances even unpaid accounts can be removed-but, unless the negative account is current, paid or settled, it will simply reappear in 10-90 days! Talk about wasted time and effort!
The only way to prevent this is to bring the account current by paying the past due amount, or, in the case of a collection, charge-off, repossession, or foreclosure, pay the balance in full or settle it for pennies on the dollar.
Unpaid accounts that do not have collection, charge-off, repossession or foreclosure status require only that the past due balance be paid to be considered current. Unless the negative account is a public record, the only way to keep them from being re-reported is to make sure the status is "current, paid, settled, transferred, or sold." That's the ONLY way.
In other words, if deleted, any negative account that does not show one of those five statuses will most likely get re-reported, unless the account is a public record.
2. Credit repair is nearly impossible if you can't pay your minimum monthly payments and you keep adding new late payments to your report. This is a "spinning your wheels" scenario that rarely yields much improvement to your credit score.
If you are currently in 1 of these 2 situations you must first realize that you are looking at more of a 6-12 month credit restoration process. Second you will need the help of a professional credit restoration specialist like me that will show you what you need to do!
www.DynamicCreditSolutions.com
The reason credit repair has received such a bad name is due to the abundance of scam artists who flock to the easy money made available by people desperate for this type of service. This unfortunate reality leads the credit bureaus and the FTC to make blanket, untrue statements such as, "Credit repair does not work ever and there is nothing a credit repair company can do for you that you can't do for yourself."
Given that more than 90% of credit repair companies are con artists, promising the world and then disappearing when you pay, the credit bureaus and the FTC are forced to make such bold statements.
It would be impossible for them to explain the truth to consumers without causing them to make a bad choice that would result in getting conned. As a result, the credit bureaus and the FTC must adhere to the "credit repair doesn't work" position.
But there is a caveat.
Even if you have a true master of credit repair on your side you have to take into account that sometimes the other players perform in a way that throws the master of credit repair off his game.
Take Shaquille O'Neal. Although he has the ability to win every game for his team there are going to be times when the other team has a formation that takes him off his game and causes his results to be less than optimal. Given that fact, you still cannot predict to any level of certainty whether or not he will perform well or poorly the next time he faces that team.
Credit repair is similar. Sometimes the opposing side shows up strong, other times they don't. Even if you follow the same approach with every situation that arises when doing credit repair, your results will still vary due to the other players involved. Unfortunately it's the inconsistency of the industry, not the inconsistency of skill level.
So here are 2 situations where it is almost impossible for credit repair to help someone needing results within 6 months to a year.
1. If more than 50% of the negative accounts showing on a credit report appear as unpaid collections, charge-offs, repossessions, or foreclosures and you do not have the money to either pay the accounts in full or settle them, then there is not much that can be done in a 3-6 month time frame if you need more than a 30 point increase.
Due to the negative accounts remaining unpaid, these items will simply reappear on your report once removed. In many circumstances even unpaid accounts can be removed-but, unless the negative account is current, paid or settled, it will simply reappear in 10-90 days! Talk about wasted time and effort!
The only way to prevent this is to bring the account current by paying the past due amount, or, in the case of a collection, charge-off, repossession, or foreclosure, pay the balance in full or settle it for pennies on the dollar.
Unpaid accounts that do not have collection, charge-off, repossession or foreclosure status require only that the past due balance be paid to be considered current. Unless the negative account is a public record, the only way to keep them from being re-reported is to make sure the status is "current, paid, settled, transferred, or sold." That's the ONLY way.
In other words, if deleted, any negative account that does not show one of those five statuses will most likely get re-reported, unless the account is a public record.
2. Credit repair is nearly impossible if you can't pay your minimum monthly payments and you keep adding new late payments to your report. This is a "spinning your wheels" scenario that rarely yields much improvement to your credit score.
If you are currently in 1 of these 2 situations you must first realize that you are looking at more of a 6-12 month credit restoration process. Second you will need the help of a professional credit restoration specialist like me that will show you what you need to do!
www.DynamicCreditSolutions.com
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