.
There are reputable credit repair companies that can help consumers fight negative information in a timely and direct manner. People should look for companies that are open and transparent about the credit repair process. These businesses should provide a clear-cut timeline for the credit repair process, generally between 60 and 120 days.
Consumers should also look for a company that will offer a money-back guarantee. This can indicate that the credit repair company truly is focused on helping the consumer.
Find a company that provides a detailed process for disputing the negative items. The repair company should have the clients review and sign each letter to ensure that the credit bureaus take the dispute seriously.
Another feature of a good credit repair company is that it offers more than just bureau verifications. A reputable company will also give clients additional services, such as negotiation of collections and other debt, as well as identity-theft monitoring and clean-up.
The best repair companies will have an attorney on staff who understands the complexities of the credit laws and who oversees individual disputes. By carefully following the legal guidelines set forth by many United States laws, a credit repair company will be successful on behalf of its clients.
Just a little bit of investigation could stop an individual from making the wrong choice when deciding which credit repair company to use. Keep the aforementioned guidelines in mind when seeking out a credit repair company for you and your clients.
Conversely, watch out for the following warning signs when researching repair services.
10 warning signs of a fraudulent credit repair company
1. Collects money up front BEFORE the work is completed.
This is illegal under the Credit Repair Organization Act (CROA). Agents and consumers should beware of companies requiring any investments before the work is completed.
2. Charges a monthly fee without a specific completion deadline.
Some of these companies are paid monthly, so there is no incentive for them to expedite the repair process.
3. Refuses to show the consumers dispute letters sent out on their behalf.
Transparency is incredibly important to the repair process, and the client should have the right to see any letters sent on his or her behalf.
4. Makes guarantees that an individual’s credit score will increase by a numerical amount or that a negative trade line will be removed.
No one should make any guarantees. If a company pledges that a score will increase by a specific number or that a negative item will be removed, then the consumer should be wary. Companies that make these promises are breaking the law.
5. Suggests that consumers shouldn’t contact the credit bureaus directly.
If a repair company doesn’t want clients to contact the bureaus, then it may not be sending out any dispute letters.
6. Doesn’t inform consumers that they can repair their credit on their own.
Anyone can repair his own credit, but it takes diligence and time. The dispute process usually requires three rounds of letters per unwarranted trade line to each credit bureau. That’s nine letters for every inaccurate or negative trade line, and that can require a lot of time.
7. Encourages clients to falsify or dispute information about legitimate claims.
If a company asks a person to falsify the information, then that individual needs to run. These companies may also offer a fake credit account to increase a person’s credit score. Then the company reports this fake line of credit to the bureaus hoping that it will enhance its customer’s score.
8. Doesn’t inform consumers of their legal rights and the laws that protect them.
A good credit repair company will inform the client about all of his legal rights under the FCRA. If the repair company doesn’t offer this information, then the consumer should ask for it.
9. Recommends that a person create a “new” credit identity.
You can’t create a new identity. Some unscrupulous companies will use illegal means to get a new social security number for you, but this practice is unethical.
10. Offers a “piggyback” to help with clients’ credit scores.
Piggybacking occurs when an individual becomes an authorized user on the credit-card account of another person with excellent credit. Over the period of a few months, the unknowing consumer has his score used to increase the piggy backer’s rating.
Using a reputable credit repair company can truly enhance your buyers’ credit scores. Beware of the 10 warning signs above, and look for a company that is transparent. Have your client’s credit score cleaned up before the financing process begins, and you’ll reap a happy and loyal customer.
Douglas Muir, CEO
Consider the things in your life that are directly affected by your credit scores: insurance rates, eligibility for bank accounts, utility deposits for your home, new jobs or promotions, renting a house, buying a house, high limits on credit cards . . . your credit may be your best asset if you take care of it.
If you could look at the real estate industry over the past 50 years, you would see that every 10 to 12 years there has been an adjustment either up or down not only in real estate prices but in the financial products supporting the industry and in the credit bureaus supplying the information.
In the mid 1990’s the mortgage industry went through an adjustment with what is known as the “A” paper lenders. These are the banks and lenders who would normally only lend money to people with excellent credit and plenty of money for 20% to 30% down payments. The market tightened up so much and the financing guidelines became so strict that it became almost impossible for Mr. and Mrs. Middle America to buy a home. This is when the Sub-Prime lenders stepped up to the plate and said “We can help you buy a home”. They designed many creative financing packages to help middle-income consumers – those with not-so-stellar credit and not enough money for large down payments -- to become homeowners. This was a great benefit to the real-estate industry and played a pivotal role in turning around the industry at that time. This worked well until the lenders got caught up in their own game and the numbers of defaults began escalating.
In the past several years the public has become accustomed to 100% financing, two-year adjustable rates which create smaller monthly payments, and lenders doing just about anything to sell themselves on their creative financing. But what most borrowers don’t understand, because it is never explained to them, are the actualities of the payment adjustments and the timing of these adjustments, which lead to higher and unaffordable payments. When the adjustments happen it is a recipe for disaster and a probable foreclosure for the borrower.
The number of defaults happening today is at an all-time high. The lenders are getting hit so hard that more than 160 of them have gone out of business in the past several months and the rest are making guideline adjustments on a daily basis. We are now seeing that 10-to-12-year adjustment in the industry again. The strong will survive and the weak will succumb, and the industry will be better and stronger as a result.
What the general public needs to know is that there will always be banks and lenders willing to make loans. The consumer’s credit score (Beacon, FICO) is more important than ever. We are a far cry from being in a doomsday scenario -- this is only an adjustment. Many financial institutions will become stronger while others will die. But what the public needs to understand is that the 100% loans, and the stated-income and stated-asset loans, as well as many other types of creative financing, may still be with us, but the lending credit-score guidelines for these loans are much more stringent today. Lenders are making adjustments to their guidelines on a daily basis, and normally not in the borrower’s favor. What a consumer used to get with a 600 beacon score now needs a 680 beacon score for the same loan. A borrower may be told that they are approved for a mortgage one day and see the offer taken back the next day, simply because the lender tightened its belt. It’s hard for the borrower not familiar with the industry to understand what’s going on behind the scenes. It is also becoming harder and harder for people of lesser means to qualify for a home mortgage. The important thing to remember is that there are many lenders out there willing to do everything possible to lend you their money. They are just going to try to make sure that it will be good for both parties (using prudent underwriting).
Contributing writer: Donna Loader, Certified Credit Consultant, veteran in the market of financing residential and commercial properties for over 20 years. Contact her at dloader@financethepropertynow.com (866-314-1288) or check out www.financethepropertynow.com
1. Shop around when looking for a credit card and choose a card with a low long-term interest rate
2. Review your credit report every six months to ensure that the information is accurate and up-to-date
3. Limit your credit to mortgages, auto loans and only a few major credit cards
4. Consolidate outstanding debt onto one low-interest-rate credit card
5. Pay credit cards and mortgages on time
6. Develop a plan to pay down your debt to less than 40 percent of available credit
7. Call your credit card companies once every six months to check your current interest
rate
8. Stay at your job for longer than one year
9. Systematically pay off your loans starting with the highest interest rate loans
10. Keep telephone and utilities in your name
11. Don’t needlessly open new accounts
12. Keep the credit cards you’ve had the longest to show established credit
What you may not realize is that every time someone inquires about your credit, a deduction is made to your credit score. One point can be removed for every bank inquiry. When applying for a credit card, three points can be taken off immediately. And when a collection agency inquires about your credit, it can cost you five points.
A maximum of 15 points can be deducted each month. Those little point deductions can quickly add up. Keep this in mind when applying for credit and paying off debt. By following the tips above, you can reap the benefits of a better credit score.
Douglas Muir, CEO
However, over the years, I’ve come to realize that some of my most rewarding moments have been volunteering in my community. Most recently, these efforts have included volunteering as coach of the Fernandina Beach High School wrestling team. The Florida Times-Union newspaper and the Scotsman Guide were kind enough to feature my philanthropic endeavors in their publications. Please visit (insert link) to read the articles.
I want to encourage all AEs and CCCs to get involved with a cause in their communities. There are several positive benefits to community service, and most people are surprised by how many business leads they receive while working toward a goal with other like-minded people. The following list provides some reasons to get involved.
1. Community participation is a great way to feel connected to the area in which you live.
2. The best networking happens when you’re participating in something you enjoy.
3. Traditional functions, such as Chamber of Commerce networking meetings, can get stale after awhile, especially if you keep running into the same crowd of people. Break out of that networking rut!
4. When you volunteer for a cause, you can give something back to the community while also gaining trust and respect from the people around you.
5. Forming relationships outside of work may attract new clients. In today’s economy, everyone knows someone experiencing credit problems.
At CJS, we are all dedicated to consumer rights. Since we are in this fight for more than just money, it is our social responsibility to participate in our communities. Being an AE or a CCC with CJS means reaching out to people who need help, and being a community volunteer is a perfect way to spread that message.
Douglas Muir, CEO
As the credit crisis continues, more and more people are struggling under their credit-card debt. According to a recent article in The Wall Street Journal, some well-known names in banking have revved up their collection engines. Citigroup, Bank of America and American Express have all picked up the pace when dealing with late-paying customers.
Citigroup Inc. has hired more people to handle collections and increased the number of calls to customers considered “delinquent” on their payments. Citigroup has also expanded its programs to let borrowers temporarily postpone payments or settle debt for less than the client may owe.
Bank of America is contacting late-paying clients earlier than in the past, and American Express is trying to help its customers by giving some a break on their interest rates, fees and other monthly payments.
The increased collection tactics come at a time when rising unemployment and a credit crunch are forcing more consumers to default on their credit-card payments. The Federal Reserve reported that revolving debt -- primarily reflecting the balances on people's credit cards -- rose in July at a seasonally adjusted annual rate of 4.8 percent to $969.9 billion. That was faster than the 3.5 percent rise in June.
Given the economic environment, companies are paying closer attention to changes in borrowers' payment and spending patterns. Consumers who previously paid bills on time or usually paid more than the minimum amounts due are more likely to catch their banks’ attention when they start making smaller payments closer to the actual due dates. Consumers who pay late will be notified much earlier, which the banks hope will encourage borrowers to not get behind.
Make sure your clients understand what’s on the collection horizon. The rise in delinquencies will prompt banks to pass overdue accounts to third-party collections, which are often much more aggressive and intimidating than the banks’ collections departments. As these companies attempt to collect debt, those consumers will also see delinquencies quickly appearing on their credit reports and affecting their credit scores. Use the chart below so that your clients can anticipate how their banks will be handling overdue accounts.
Douglas Muir, CEO
view all blog entries...
Sep 2008
10 warning signs of a fraudulent credit repair company
Under the Fair and Accurate Credit Transaction Act (FACTA) of 2003, the credit bureaus can ignore all claims made by third parties venders to include attorney firms, who send out dispute letters on the consumer’s behalf. That means the law firms and internet companies’ attempts most likely will not be successful. This is why Credit Justice Services is the only credit repair company that has the consumer send out their dispute letters on their behalf. This type of transparency allows the consumer to stay involved during the processes. I believe it is the lack of transparency by the other credit repair companies which has given our industry a bad reputation
by valeria on Mon Sep 01, 2008 10:06 pm
There are reputable credit repair companies that can help consumers fight negative information in a timely and direct manner. People should look for companies that are open and transparent about the credit repair process. These businesses should provide a clear-cut timeline for the credit repair process, generally between 60 and 120 days.
Consumers should also look for a company that will offer a money-back guarantee. This can indicate that the credit repair company truly is focused on helping the consumer.
Find a company that provides a detailed process for disputing the negative items. The repair company should have the clients review and sign each letter to ensure that the credit bureaus take the dispute seriously.
Another feature of a good credit repair company is that it offers more than just bureau verifications. A reputable company will also give clients additional services, such as negotiation of collections and other debt, as well as identity-theft monitoring and clean-up.
The best repair companies will have an attorney on staff who understands the complexities of the credit laws and who oversees individual disputes. By carefully following the legal guidelines set forth by many United States laws, a credit repair company will be successful on behalf of its clients.
Just a little bit of investigation could stop an individual from making the wrong choice when deciding which credit repair company to use. Keep the aforementioned guidelines in mind when seeking out a credit repair company for you and your clients.
Conversely, watch out for the following warning signs when researching repair services.
10 warning signs of a fraudulent credit repair company
1. Collects money up front BEFORE the work is completed.
This is illegal under the Credit Repair Organization Act (CROA). Agents and consumers should beware of companies requiring any investments before the work is completed.
2. Charges a monthly fee without a specific completion deadline.
Some of these companies are paid monthly, so there is no incentive for them to expedite the repair process.
3. Refuses to show the consumers dispute letters sent out on their behalf.
Transparency is incredibly important to the repair process, and the client should have the right to see any letters sent on his or her behalf.
4. Makes guarantees that an individual’s credit score will increase by a numerical amount or that a negative trade line will be removed.
No one should make any guarantees. If a company pledges that a score will increase by a specific number or that a negative item will be removed, then the consumer should be wary. Companies that make these promises are breaking the law.
5. Suggests that consumers shouldn’t contact the credit bureaus directly.
If a repair company doesn’t want clients to contact the bureaus, then it may not be sending out any dispute letters.
6. Doesn’t inform consumers that they can repair their credit on their own.
Anyone can repair his own credit, but it takes diligence and time. The dispute process usually requires three rounds of letters per unwarranted trade line to each credit bureau. That’s nine letters for every inaccurate or negative trade line, and that can require a lot of time.
7. Encourages clients to falsify or dispute information about legitimate claims.
If a company asks a person to falsify the information, then that individual needs to run. These companies may also offer a fake credit account to increase a person’s credit score. Then the company reports this fake line of credit to the bureaus hoping that it will enhance its customer’s score.
8. Doesn’t inform consumers of their legal rights and the laws that protect them.
A good credit repair company will inform the client about all of his legal rights under the FCRA. If the repair company doesn’t offer this information, then the consumer should ask for it.
9. Recommends that a person create a “new” credit identity.
You can’t create a new identity. Some unscrupulous companies will use illegal means to get a new social security number for you, but this practice is unethical.
10. Offers a “piggyback” to help with clients’ credit scores.
Piggybacking occurs when an individual becomes an authorized user on the credit-card account of another person with excellent credit. Over the period of a few months, the unknowing consumer has his score used to increase the piggy backer’s rating.
Using a reputable credit repair company can truly enhance your buyers’ credit scores. Beware of the 10 warning signs above, and look for a company that is transparent. Have your client’s credit score cleaned up before the financing process begins, and you’ll reap a happy and loyal customer.
Douglas Muir, CEO
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Current Credit Turmoil
This is an opportune time to look at credit repair. Is your credit score in the tank? Are their errors, paid items or anything that the Fair Credit Reporting Act says you can dispute on your report? Disputing is not only a viable option; it may be the best thing you can do for yourself and your family.
by valeria on Mon Sep 08, 2008 1:50 pm
Consider the things in your life that are directly affected by your credit scores: insurance rates, eligibility for bank accounts, utility deposits for your home, new jobs or promotions, renting a house, buying a house, high limits on credit cards . . . your credit may be your best asset if you take care of it.
If you could look at the real estate industry over the past 50 years, you would see that every 10 to 12 years there has been an adjustment either up or down not only in real estate prices but in the financial products supporting the industry and in the credit bureaus supplying the information.
In the mid 1990’s the mortgage industry went through an adjustment with what is known as the “A” paper lenders. These are the banks and lenders who would normally only lend money to people with excellent credit and plenty of money for 20% to 30% down payments. The market tightened up so much and the financing guidelines became so strict that it became almost impossible for Mr. and Mrs. Middle America to buy a home. This is when the Sub-Prime lenders stepped up to the plate and said “We can help you buy a home”. They designed many creative financing packages to help middle-income consumers – those with not-so-stellar credit and not enough money for large down payments -- to become homeowners. This was a great benefit to the real-estate industry and played a pivotal role in turning around the industry at that time. This worked well until the lenders got caught up in their own game and the numbers of defaults began escalating.
In the past several years the public has become accustomed to 100% financing, two-year adjustable rates which create smaller monthly payments, and lenders doing just about anything to sell themselves on their creative financing. But what most borrowers don’t understand, because it is never explained to them, are the actualities of the payment adjustments and the timing of these adjustments, which lead to higher and unaffordable payments. When the adjustments happen it is a recipe for disaster and a probable foreclosure for the borrower.
The number of defaults happening today is at an all-time high. The lenders are getting hit so hard that more than 160 of them have gone out of business in the past several months and the rest are making guideline adjustments on a daily basis. We are now seeing that 10-to-12-year adjustment in the industry again. The strong will survive and the weak will succumb, and the industry will be better and stronger as a result.
What the general public needs to know is that there will always be banks and lenders willing to make loans. The consumer’s credit score (Beacon, FICO) is more important than ever. We are a far cry from being in a doomsday scenario -- this is only an adjustment. Many financial institutions will become stronger while others will die. But what the public needs to understand is that the 100% loans, and the stated-income and stated-asset loans, as well as many other types of creative financing, may still be with us, but the lending credit-score guidelines for these loans are much more stringent today. Lenders are making adjustments to their guidelines on a daily basis, and normally not in the borrower’s favor. What a consumer used to get with a 600 beacon score now needs a 680 beacon score for the same loan. A borrower may be told that they are approved for a mortgage one day and see the offer taken back the next day, simply because the lender tightened its belt. It’s hard for the borrower not familiar with the industry to understand what’s going on behind the scenes. It is also becoming harder and harder for people of lesser means to qualify for a home mortgage. The important thing to remember is that there are many lenders out there willing to do everything possible to lend you their money. They are just going to try to make sure that it will be good for both parties (using prudent underwriting).
Contributing writer: Donna Loader, Certified Credit Consultant, veteran in the market of financing residential and commercial properties for over 20 years. Contact her at dloader@financethepropertynow.com (866-314-1288) or check out www.financethepropertynow.com
Helping clients increase their credit scores
You can help your clients increase their scores before applying for credit. Major purchases generally require financing, and a consumer’s credit score directly affects the terms of the loan. Share the tips below to empower your clients to increase their own credit.
by valeria on Mon Sep 15, 2008 1:13 pm
1. Shop around when looking for a credit card and choose a card with a low long-term interest rate
2. Review your credit report every six months to ensure that the information is accurate and up-to-date
3. Limit your credit to mortgages, auto loans and only a few major credit cards
4. Consolidate outstanding debt onto one low-interest-rate credit card
5. Pay credit cards and mortgages on time
6. Develop a plan to pay down your debt to less than 40 percent of available credit
7. Call your credit card companies once every six months to check your current interest
rate
8. Stay at your job for longer than one year
9. Systematically pay off your loans starting with the highest interest rate loans
10. Keep telephone and utilities in your name
11. Don’t needlessly open new accounts
12. Keep the credit cards you’ve had the longest to show established credit
What you may not realize is that every time someone inquires about your credit, a deduction is made to your credit score. One point can be removed for every bank inquiry. When applying for a credit card, three points can be taken off immediately. And when a collection agency inquires about your credit, it can cost you five points.
A maximum of 15 points can be deducted each month. Those little point deductions can quickly add up. Keep this in mind when applying for credit and paying off debt. By following the tips above, you can reap the benefits of a better credit score.
Douglas Muir, CEO
Community service can help your business too
During the last 10 years, I’ve been blessed to have several of my companies reach success and to achieve my entrepreneurial goals. I’ve watched CJS grow and expand to more than 46 states, and now – because of the commitment and hard work of my CCCs and AEs – it is the fourth-largest credit repair company in our country.
by valeria on Mon Sep 22, 2008 1:41 pm
However, over the years, I’ve come to realize that some of my most rewarding moments have been volunteering in my community. Most recently, these efforts have included volunteering as coach of the Fernandina Beach High School wrestling team. The Florida Times-Union newspaper and the Scotsman Guide were kind enough to feature my philanthropic endeavors in their publications. Please visit (insert link) to read the articles.
I want to encourage all AEs and CCCs to get involved with a cause in their communities. There are several positive benefits to community service, and most people are surprised by how many business leads they receive while working toward a goal with other like-minded people. The following list provides some reasons to get involved.
1. Community participation is a great way to feel connected to the area in which you live.
2. The best networking happens when you’re participating in something you enjoy.
3. Traditional functions, such as Chamber of Commerce networking meetings, can get stale after awhile, especially if you keep running into the same crowd of people. Break out of that networking rut!
4. When you volunteer for a cause, you can give something back to the community while also gaining trust and respect from the people around you.
5. Forming relationships outside of work may attract new clients. In today’s economy, everyone knows someone experiencing credit problems.
At CJS, we are all dedicated to consumer rights. Since we are in this fight for more than just money, it is our social responsibility to participate in our communities. Being an AE or a CCC with CJS means reaching out to people who need help, and being a community volunteer is a perfect way to spread that message.
Douglas Muir, CEO
Banks crack down on customers
Prepare your clients for new collection tactics
by valeria on Mon Sep 29, 2008 3:07 pm
As the credit crisis continues, more and more people are struggling under their credit-card debt. According to a recent article in The Wall Street Journal, some well-known names in banking have revved up their collection engines. Citigroup, Bank of America and American Express have all picked up the pace when dealing with late-paying customers.
Citigroup Inc. has hired more people to handle collections and increased the number of calls to customers considered “delinquent” on their payments. Citigroup has also expanded its programs to let borrowers temporarily postpone payments or settle debt for less than the client may owe.
Bank of America is contacting late-paying clients earlier than in the past, and American Express is trying to help its customers by giving some a break on their interest rates, fees and other monthly payments.
The increased collection tactics come at a time when rising unemployment and a credit crunch are forcing more consumers to default on their credit-card payments. The Federal Reserve reported that revolving debt -- primarily reflecting the balances on people's credit cards -- rose in July at a seasonally adjusted annual rate of 4.8 percent to $969.9 billion. That was faster than the 3.5 percent rise in June.
Given the economic environment, companies are paying closer attention to changes in borrowers' payment and spending patterns. Consumers who previously paid bills on time or usually paid more than the minimum amounts due are more likely to catch their banks’ attention when they start making smaller payments closer to the actual due dates. Consumers who pay late will be notified much earlier, which the banks hope will encourage borrowers to not get behind.
Make sure your clients understand what’s on the collection horizon. The rise in delinquencies will prompt banks to pass overdue accounts to third-party collections, which are often much more aggressive and intimidating than the banks’ collections departments. As these companies attempt to collect debt, those consumers will also see delinquencies quickly appearing on their credit reports and affecting their credit scores. Use the chart below so that your clients can anticipate how their banks will be handling overdue accounts.
Douglas Muir, CEO
