I just read an article by Simon Constable over at Thestreet.Com about how some companies are now offering borrowers quick ways to mend their credit scores.
While far from a new industry it is however, a dead industry.
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…
Mind-boggling identity theft statistics have consumers looking for protection, and financial institutions scrambling for ways to provide it. Some statistics show that somebody’s identity is stolen every two seconds.
Statistics like these have spawned a fast growing industry of products offering identity theft protection - but are these services worth it, or just another attempt to get into your wallet?
I hate to burst your bubble, but I say they are near worthless and I have some preliminary proof of my own.
Let me explain what I’ve done and you can decide for yourself.
We were consulting a couple Friday that had previously disputed some items online directly on the credit bureaus websites, and I thought it might make an interesting topic to discuss real quick.
I highly recommend you NEVER use their online dispute systems, and I'll explain why.
I wrote a blog entry here about dispute letters being used in an attempt to repair your credit and wanted to elaborate a bit more on it.
It seems no matter what you read on the internet about credit repair services, it all says the same thing.
“Send the credit bureaus a dispute letter. They have 30 days to verify the debt in dispute, or it must be removed from your credit report”.
Haven’t seen one? Feel like getting really disillusioned with people who call themselves experts? Go here and navigate to the third page of their article
Sure, there was a time (a long time ago) when dispute letters worked. That was then, this is now and these letters are a waste of time.
If you rely on nothing more then these letters to repair your credit, you’re going to get marginal results at best. More realistically, you’re going to get sued and I’ll tell you why.
Imagine I just took a picture of you; and it’s going on this blog for the world to see.
How’d you look?
Chances are, unless you’re one of the annoying lucky few who always look perfect, it’s not the picture you want the world looking at. If you’re like most of us, you’d want a chance to at least do the hair check thing.
Your credit score is no different.
Rarely does it look good all the time - but with forewarning and a little primping, it can take as pretty a picture as anybody.
Here’s why I bring this up.
Want to learn 5 fast and easy tricks to improve your credit score - FAST?
I know silly question. Of course you do.
Google the phrase “Credit Repair” and you’ll find hundreds of thousands of websites publishing the same generic, useless crap about “under the FCRA you have the right to dispute…yada, yada."
Sure, it’s important to know how to remove negative items from your credit report (that being the worst way BTW), but removing negative items is only one part of a good credit score.
We’ve helped tens of thousands of people just like you - raise their credit scores by 80, 90 and even 100 points before we even begin to remove negative items.
Want to know how?
“Send us your credit reports. Tell us which items to dispute. Sit back, relax and let us work on your credit.”
Read just about any credit repair company’s website and you might notice their dispute process sounds something like that. I see the appeal; and to a consumer who doesn’t know the ins and outs of credit repair might think a simple process is best.
After all, they’re the experts. Let them do their jobs right?
What if I told you that this simple little process is the surest way of getting yourself sued? It is. I guarantee it. Keeping reading and I’ll prove it.
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