“We’ll fix your credit!”… is this for real?
October 25, 2007
The days of being able to buy a home if you can sign your name and prove you have a credit score (even a low one like 580) are long gone. With mortgage qualifications and guidelines tightening, your credit score and history are more important than ever.
And there are companies out there who are eager to take advantage of the current situation. You may have heard radio or TV commercials for companies that claim they can “fix your credit forever.” If this sounds too good to be true, there is a reason for it – it just may be too good to be true!! Here are some common myths about fixing your credit that “credit repair” companies use.
MYTH #1: Negative entries can be removed from your credit report.
REALITY: No service (or person) can legally remove accurate negative entries on your credit report. However, the law does allow you to request a re-investigation of information in your file that you dispute as inaccurate or incomplete. This usually takes the form of a mistake reported to the credit bureau that has not been removed from your credit report.
MYTH #2: You don’t have access to the essential information needed to do the work “credit repair” companies can do for you.
REALITY: Everything a “credit repair” company does you can do for yourself at little or no cost. This would save you a lot of money because companies selling this “service” are not cheap.
MYTH #3: Requesting an investigation into mistakes on your credit report is difficult, confusing, time consuming, and expensive.
REALITY: While the process can be time consuming, there is no charge for requesting an investigation. Besides, even if there are small costs involved (stamps, envelopes), it would be much cheaper than paying a “credit repair” company to do it.
The point of the credit repair procedure is to verify accurately reported information. If a credit bureau reporting a collection cannot verify the information OR even be contacted, then collection is hard to prove and increases the likelihood of removing this inaccurate negative mark. If the creditor can be contacted, you will need to be prepared to offer proof of the mistake, which usually takes the form of a letter from a creditor admitting the mistake.
If you don’t want to spend the time or energy doing the legwork, these “credit repair” companies are the way to go. If you do decide to use one of these companies, just be sure you know exactly what they can and can’t do for you. If you don’t believe me, see what the Federal Trade Commission has to say:
“Do we look like con artists? Of course not, so don’t worry, we can fix your credit.”
In a future post, we will dive into steps you can take to review your credit report and to request an investigation for anything that has not been accurately reported…
Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.
