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LET'S TALK CREDIT SCORES vs. CREDIT REPAIR
The main premise of credit repair revolves around "disputing and challenging" derogatory information from your credit report.
The bureaus contact the creditor for validation. In theory, the credit bureaus have 30-days by law to respond to your dispute or they must, by law remove
this item from your report.
However, through technological advancements, these requests are processed in no time at all. Credit repair companies will then re-dispute items over and over
each month praying someone will slip up (doesn't happen today). This is the perfect case of 'The Boy Who Cried Wolf.' The bureaus will respond to you in a
letter stating something to the effect of "Please stop attempting to make frivolous disputes. Your accounts have been verified to be yours and will remain
on your credit report." Your file is notated each time you contact the bureaus. Now what do you think will happen when you are really trying to resolve
something that really is incorrectly reporting on your profile? The bureaus will ignore all future requests on that item, even valid ones.
Don't let this happen to you!
Below, we have listed some of the major claims that credit repair companies make towards consumers to entice them into working with them.
We encourage you to do a simple search online under "credit repair" and view some of the many companies out there claiming that they can do some of the things
listed below. You are now smarter than the average bear. You will know better. Please see 'OUR SERVICES' to learn how we can be of value to you and avoid getting scammed by another credit repair company. Start being helped and stop being hurt.
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| FALSE CLAIM: Credit Repair companies claim they can legally remove, delete, or eliminate valid, verifiable information from your credit profile. |
LTCS TRUTH: These companies boast they have removed "thousands" of items from credit reports to date. All they are doing is simply updating inaccurate information - not deleting verifiable information. In the rare cases that they do have something deleted where a creditor could not respond in 30-days or less, it will only pop-up once again down the line when the creditor does finally respond, and after you have paid hundreds, or thousands of dollars to have it once removed. And homebuyers beware! Public records will still come up under a title search even if they do not show on your credit report. |
| FALSE CLAIM: Beware of companies that boast 'debt consolidation,' 'debt settlement,' credit counseling,' etc. |
LTCS TRUTH: These companies may help you save a few dollars on some of your outstanding debt. What they don't tell you, is in the meantime, they are destroying your credit. Do you know that these companies most often intentionally let you go late on your current established accounts just to give them leverage to negotiate with your creditors? They also will not tell you that on your credit report, there will be a note under each trade-line managed by them that says "debt managed by consumer credit counseling." How do you think this looks when asking for money when any creditor can clearly see you can't pay your bills yourself? Is it worth it? You may get debt free, but you will be unable to obtain future credit! |
| FALSE CLAIM: They offer you a "100% money-back guarantee." |
LTCS TRUTH: Read between the lines! Most "guarantees" are effective if you have completed their specified time of contract (typically 1 year) and if your scores have not gone up. Simply pay your bills on time each month for a year and your score will absolutely go up! Your scores will go up if they do not get anything deleted, thus voiding your "money-back guarantee." |
| FALSE CLAIM: Many companies take pride in claiming that they have teams of Attorneys that can assist you with powerful legal backing. |
LTCS TRUTH: Often times, Attorneys will know no more than you do about resolving many issues at hand. Remember, we have already established that there are no "legal loopholes" or legal tactics to have items magically erased from your credit report. Now why would you need to hire an Attorney to do anything for you regarding your credit profile? And do you not think that the credit bureaus do have any legal counsel? |
| FALSE CLAIM: The famous claim "Removing old, negative items makes your scores go up!" |
LTCS TRUTH: Did you know that the most significant impacts on your score are affected from anything within the past 24 months? If a company could get a delinquent payment deleted from your credit report from 4 years ago, or that old collection form 5 years ago, it would have virtually no impact on your score. The most important factor for raising your scores are open, revolving accounts…. Credit cards! Have them, use them… you need them! |
| FALSE CLAIM: "The client saves significantly more compared to the cost of service." |
LTCS TRUTH: Time and time again, we work with people that were charged $1500, $1900, $2400 and more. They were promised that their derogatory information would be removed from their credit report. Most of them had outstanding debts that totaled less than they were being charged to have them removed! Pay your debts, for less than what it would cost you to have them attempted to be removed! Now, not only are you still stuck paying them, but also out the extra $1500, etc. that you paid your "credit repair" company to try and have them removed! Think about the time also lost in attempting to have things removed when they could have been resolved a year ago the proper way. |
| FALSE CLAIM: Companies claiming to "Add seasoned trade-lines to your account." |
LTCS TRUTH: What they are doing is adding you as an authorized user under their networked pool of people for upwards of $1000 per account promising this will increase you scores over 100 points. Please click on the following link. You will see how the credit scoring model is changing because the credit bureaus have caught on to this quick fix scheme. Don't waste your money! It will not help you! http://www.credit.com/credit_information/credit_report/Consumer-Alert-FICO-Formula-Changes.jsp |
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