Myths of Credit Repair pt. 4

The following myth is a common belief held by the Federal Trade Commission. In fact, they have publicly stated that there is NOTHING that a credit repair company can do that you, the consumer, cannot do yourself.

Myth #4: Disputing a credit report is easy. Any consumer can do it themselves.

This is essentially true. What they don't tell you is that getting the results you desire can be very tough. In fact, for a layperson, the whole process can be difficult and infuriating.

The Federal Trade Commission receives more complaints against credit bureaus (Experian, Equifax and Trans Union come to mind) than any other type of business. In February 2003, these three bureaus paid fines totaling 2 1/2 million dollars for ignoring consumers requesting information regarding their file. Remember that these companies are primarily interested in protecting their profits, not answering your questions or disputes. Investigating consumer disputes consumes these profits. Sparking a mass number of lawsuits, these companies do everything in their power to impede your progress in credit restoration.

Restoring your credit is much like rebuilding your own transmission or representing yourself in court. It is possible, but you have to be willing to invest the time to learn the processes, assume the risks of inexperience and realize that it will probably take you longer and you will be less effective than a professional.

When you think about the costs of a good credit restoration company, think of it as an investment rather than aanother bill. I have seen past clients balk at paying a couple hundred dollars a month for half a year to fix their credit, but will continue to pay hundreds more a month in excess on auto loan interest, credit card interest, mortgage interest, and if they are renting, they pay the landlord to live in a home with nothing to show for it in the end.

We need to think of credit restoration in terms of return on investment. Would you be willing to pay $1500 now to improve your credit and save $150,000 over the life of your next mortgage? Of course you would. That would be like purchasing $100 bills for $1. How many do you want????

Unfortunately some people feel that the initial cost is too high or that they are unwilling to sacrifice for a short time to get through the program. Using the example above, it's like purchasing 2 quarters for $1. How many times can you afford to do that?

If you have questions about credit restoration, feel free to send email to scott@USCCRAonline.com. I am always willing to help. If the initial outlay seems too much right now, let's sit down and take a look to see where we can cut. Sometimes another pair of eyes can help see the forest through the trees.

Scott

Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.