Ok First things first. I was overwhelmed to see how many questions you folks had for me when I asked you to send them to us.

So, I think this will be the first of a series of “Friday Credit Repair Q&A posts.” Yes I know its Saturday – but I answered these on a flight back from Denver.

Here it goes…

My Son added me as an authorized user about 6 months ago.  Due to certain circumstances, we are unable to make payments right now. They called my son and said they would deduct it from my checking account. Can they do that when I’m only the authorized user?

Answer: No they cannot and are bordering on a violation of your rights by threatening to do something they cannot do. An authorized user is not responsible for payments. With that said, what can happen is that any negative marks on an account you’re an authorized user of – will negatively impact your credit as well. If you son misses a payment, that’s going to hurt your score as well.

Marc, the truth. Can a credit repair company (a legitimate one) really do better then a consumer could on his/her own? In other words, what do you claim you can do that I can’t find in the Fair Credit Reporting Act?

Answer: If I had a Nickel…
Ok, here are the facts. I don’t care what the FTC, or anybody else says. I guarantee I’m right about this.

With respect to credit repair mills – the ones that just fire off generic dispute letters on your behalf, yes you can do the same thing. Don’t pay a penny for that service.

In terms of really understanding and optimizing your credit profile - unless you do it for a living, it’s going to take you years and you’re going to make mistakes and face some set backs.

Think about your career for a minute. The things you’ve learned over the years. The little “tricks of the trade”. Would I be able to read a few books and do what you’ve done for years just as good - that quick? Probably not!

For the most part, I can read and research just about anything and figure it out (generally speaking). Cooking, auto repair, my taxes you name it there’s going to be a book on it. For example; I could read a cookbook and probably whip out Gordon Ramsey’s signature "cappuccino of white beans with grated truffles" – but who do you think is going to make it better?

There’s no magic to credit and we’ll never claim to have secrets that only we know. But what we have that you don’t is almost a decade of dealing with credit profiles. Possibly hundreds of thousands of trade lines that we’ve removed, established, sued over or negotiated. Sometimes experience just counts.

One last thing. An answer to another question we received very similar to this one - is that the FCRA is probably something we utilize about 2% of the time. That barely scratches the surface.

I’ve read Dave Ramsey’s book and had a question about an area you guys and he differ in opinion. He states you should pay off your credit card balances from lowest balance to highest. I read somewhere on your site you recommend paying of highest interest card first. Can you explain both sides of the argument?

I know you guys are pretty well respected, but Dave is huge. Trying to see where you both draw your conclusions from.

Answer: Good old Dave. You know I actually got in an argument with his PR person a while back regarding a review of his book I did. Dave recommends paying off the smallest balances first as a way to win a psychological battle.

The idea being if you see small card paid off, it’s going to psychologically motivate you. In a way I see his point; on the other hand I think its crap.

We focus on financial results. The highest interest cards are hurting you the most. They cost the most, and they take the longest to pay off. If you’re in this for mental victories, follow Dave’s advice. If you’re in this to get out of debt as fast as possible, then get those high interest rates out of your life as fast as you can.

On the phone the other day, you told me you’re dropping your affiliate program. I understand it’s been pretty successful thus far, what prompted the decision to give up a good money maker for you?

Answer: That’s a good question and you’re right - It was a tough decision because our affiliate program is very successful. Here is why we made this decision.

Credit repair is a really sleazy industry, and I have no doubt the only way to survive for the long haul is going above and beyond ethical standards. Affiliates don’t have that same commitment. They don’t have the same vested interest as the owners of the company.

Their motive is to make the sale. Now, I don’t blame them, they’ve worked hard and done a good job. But we decided we want total control of every word that is said to our clients. Our reputation is far more important then “making the sale.”

Announcement: What we’ve replaced our affiliate program with is our credit repair software and training course. We’ve spent 3 years developing this software and training classes – and you’re going to love it. That will be available to affiliates and consumers by the end of January.

Please contact us if you’re interested in it.

If you had to choose the single most important aspect of credit repair for a “normal Joe” to learn about, what would it be – The FCRA, FDCPA?

Answer: None of the above, but choosing one aspect is hard. Choosing one I’m going to say learning your particular state’s statutes. The FCRA & FDCPA are over rated and over abused I think.

Your debts, the amount of interest collectors can charge, the legal time limits they have to sue are all per state. We rely on those factors far more then the FCRA. If we have a client in Ca, we’ll handle their credit entirely different then one that’s in CT.

There you have it. Our first round of Credit Repair Q&A. We’re going to do this every Friday, so if you have questions…please email them, or post them here and we’ll answer them on Q&A Fridays. (yes I know today is Saturday)