Do it Yourself Credit Repair
Start Your Own Credit Repair
It is well known that credit repair professionals do not have access to powers that are not available to consumers. Many consumers enjoy studying up on the process and do a fine job of increasing their credit score on their own. Others prefer to bypass the long learning curve and let credit repair professionals use their experience to achieve quicker results. Smart people know there are tricks to every trade. Credit repair is no exception. Establishing priorities to maximize your credit repair efforts is more easily done by a professional who is not emotionally involved. Much about the credit scoring system is counter intuitive. Following “common sense” can lead to doing the wrong thing. The reality is the credit scoring computer does not care if you just got a raise or have money in the bank. Even though common sense would tell you to just pay off old bills a professional knows you can frequently negotiate for complete expungement of negative records. Partial payments can reawaken old “dormant” accounts to the credit scoring computer. Small collections can affect your score as much as large collections. Some problems affect your credit score more than others. Negative entries recede in importance as time goes by because the credit scoring algorithms assume older negative entries become “less predictive” of future default as they age. A professional can explain the benefits of becoming an authorized user on someone else’s good account.
Get Credit Repair Started
It is my bedrock philosophy that those who are ready to make a serious effort to improve their credit score should at least start the process themselves. For maximum long term results it is necessary to have some basic understanding of how the credit scoring system works. People vary greatly in how much responsibility they are willing to assume to achieve the goal of better credit. Beginners need to adhere to the guidelines contained in my introduction as they “get their feet wet”. This will educate them in preparation for their using more sophisticated techniques that bring rapid improvement. If there comes a time when outside help is needed the process will already be well underway. Don’t let pride stop you from seeking help if you get lost in the weeds. Credit repair has a considerable learning curve. Mistakes can be costly.
Beware Fee Based Credit Repair
Always remember that if a hacker were really smarter than the MIT and CalTech graduates that devised and monitor the credit scoring system with all its checks and balances they wouldn’t need to be a hacker. Credit repair like every trade and profession has its carnival barkers to bottom feed off the ignorant and gullible.
Beware before you sign up with fee based credit repair professionals. Some will file a blizzard of unfounded objections to impress you and justify their fee. It is unwise to jam credit reporting agencies with form letters objecting to legitimate entries. Banks will not grant mortgages with pending disputes in the file. The credit reporting agencies themselves decide when disputes are frivolous. Frivolous disputes will be ignored. Too many frivolous disputes can lead to a skeptical bias against legitimate disputes. Banks will not process mortgage applications with open disputes outstanding. PLEASE do not employ the illegal services of a “hacker”. That decision does not just bend the rules…it breaks them if it crosses the line into fraud. This can cause a lifetime of regret.
It is illegal to create a phony alternative social security number.
There are Good Credit Repair Professionals
There is no license required or competency testing to start a credit repair business in most States. Anyone can claim to be a credit repair professional. Starting a nails or hairdressing salon or walking dogs requires more professional licensing than credit repair. Here are some pointers to consider before employing paid credit repair help:
If miracles are promised walk out the door. Credit repair is a process. Those who claim to be creditors have a right to respond to your dispute within 30 days. Think of credit repair as you would think about going to the gym to get in shape. Stick with it and good things will happen. Expecting overnight results will lead to discouragement and failure.
- Referrals Social proof is important. Certain kinds of social proof however are easily gamed. People can be bribed or paid to write good reviews. Competitors and other unfriendly people can write bad reviews. If other people you know have tried a credit repair professional’s service and are happy with the result there is a good chance you will be happy too. Social proof should be reinforced with other reliable proof.
- Professional Background Has the alleged expert written any books? What professional background can credit repair professionals claim for you to put your trust in?
- Case Studies Don’t be afraid to ask for examples of past triumphs.