Posts

Starting Credit Repair│5 Questions You Should Ask

So You’re Saying There’s A Chance?

All jokes aside, credit repair is a very serious matter.  We have come into contact with many companies that over promise and under deliver when it comes to the services they offer. Have you been teetering back and forth between companies but have been unsure what to ask? Well here’s your guide for working through the sales pitch, and getting to the hard facts.

What is credit repair and how does it work?

When a consumer decides that they are going to attempt credit repair there is often a “pain point” involved that has led them to this decision. For many of our clients, they have visited a lending institution and have been denied financing. Being denied for a home loan or car loan can really get a person in gear and ready to go because credit is important when it comes to major financial purchases. Have you been denied financing recently and are trying to start making your way back toward better credit?

You may find yourself looking for ways to improve your credit score and running into a dead end with “repair” companies. Another thing you may have found is that you may have heard that you can work on your credit repair yourself.

A law firm, like Credit Law Center has the ability to do more than both a consumer and what a credit repair company can. The side by side shows just a few things that you may want to start quizzing your current or potential credit repair company you hire on and start to look for companies that can help you out in all aspects of credit repair.

1. What Will I Need To Get Started?

In order to enroll in credit repair with Credit Law Center you will want to speak with a credit advisor first. They will walk you through our process and what you can expect as far as cost and time frame goes. You will know after your consultation what the cost could be for credit repair if every item came off the report.

You will notice we said if everything comes off. Each item is priced per line item as we only want to charge a client for the successful removal of what we dispute. You would receive a contract ceiling price and be billed accordingly after each round is completed. We are a pay for performance company, which just means you will only pay us for results as opposed to a monthly repair company.

Next, you will need a copy of your credit report, which the credit advisor will pull with you. They will go through line by line with you and educate you on how you can improve scores while we work on any derogatory items on the report. You can expect to pay $1 at the consultation and then decide if you would like to work with our Law Firm. Again, you will be quoted all pricing before ever signing a contract.

Although the cost may sound cheaper per month for a monthly program, and manageable for your budget, it might hurt you more in the long run.  Too often we see consumers that agree to this and they end up signing up for something that takes years for them to improve their credit. Our typical time frame is 60-120 days depending on what other items are positively reporting on a report.

We will work inside anyone’s budget!

Finally, a contract will be emailed to you and after a few ID’s submitted to your credit advisor, you will be ready for credit repair! We are built for speed and this is why 53% of our business comes from referral partners like loan officers and real estate agents. They can expect that their clients will get results quickly, and be ready for financing.

2. Is There An Attorney Involved/Working For Me?

We currently have 3 attorneys in the office that our clients can speak with about their credit reports or any legalities they may come across during or after credit repair. These attorneys also have the ability to work on your behalf, to stop collection calls as well as work with you on what you can say now that you are a client. When a collection company calls you and you are represented by a law firm, you have the ability to request no further communication at that time. Should you continue to receive calls, you may be able to sue for continued harassment.

Does your current “law firm” have the ability to do this? Ask the hard questions!

 

free credit repair consultation

3. Do They Have The Ability To Negotiate And Sue?

Credit Law Center has sued all three major credit agencies: Experian, Transunion, and Equifax. Ask your current or potential company in questioning if they can do this!

Unfortunately for a consumer, there are many ways that these agencies and collection companies go in and break the law. The main reason for this is due to the lack of education out there about credit and what can or cannot be done. You want a legal team guiding you and informing you of your rights through this process.

Our legal team is versed in the FDCPA (Fair Debt Collection Practices Act) and  FCRA (Fair Credit Reporting Act).

Although your credit advisor will not give you legal advice, you can rest assured that as a client you have access to any of the attorneys on staff about matters such as harassing phone calls and items being misreported. They can also negotiate debts on your behalf or sue for damages if you have been impacted by misreporting on a credit report.

4. Who Will Be Monitoring My Credit?

There seems to be many companies out there right now that do not monitor the clients credit while in repair, or do not let them know if they have new activity or items reported. We will monitor your credit with our monitoring service and will update you every 45 days or so on your report. You have access to a copy of the report at all times.

Do you receive updated copies of your credit report with your current service?

This is vital for us, as it allows us to see what items are being removed when we dispute and allows us to also see if you are ready to go from a credit score standing on financing. We will never hold a client in repair any longer than need be. If they are at a point that a lender says they are ready to move forward, we will pull them out of repair and send them on their way!

5. Am I Being Billed Monthly Regardless of Items Being Removed or Not?

Lastly, and most importantly, ask what you are being billed for. If you are working with a credit repair company and spending money monthly with no activity as far as your score moving at all, it may be time to make a switch. We are saying there’s a chance! If you work with the right company that can provide you with great results and you listen to the education our credit advisors provide, you may be off to your dream home or dream car sooner than you thought!

If  you are currently working with a credit repair company and are not satisfied with your results, please let us know. We would be happy to help you get financially ready for whatever your next steps might be (house loan, car loan, etc.) Please  contact us today for your personal consultation with a Credit Advisor. We have helped over 30,000 clients improve their scores. Let us get you back on the path toward financial freedom.

Article By Breana Washington

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Check out Credit Law Center’s infographic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic

 

Reconsidering Rent-To-Own│More Risk or More Reward?

Is Rent-To-Own A Sure Thing?

The here and now seems to take the front seat as opposed to decisions that are best for the budget for a lot of families.

“We need more space.”

“Our credit isn’t where it needs to be.”

“What is the quickest way to start building for our future and not funding my landlords retirement?”

Rent-to-own is here. But should it be the move you make?

What Am I Agreeing To?

Rent-to-own contracts can be a little misleading. As with any contract you sign, double check that everything makes sense and is conducive for you and your family in the long run.

Remember when you said you were not wanting to fund your landlords retirement? The typical lease a family signs is a 12 month lease. Anything after that is usually month to month or on extended terms.  With rent-to-own you are saying that you will lease possibly 2-3 years. At the end of those terms, then you have the option to buy it.

Most rent-to-own tenants have decided this option is best for them because they do not have a lump sum for a down payment or cash on hand.

Read further about a few things you may have not been aware of in the rent-to-own agreements.

What They Don’t Tell You

Although you are leasing the home this does not mean that by the end of the lease agreement you will still be approved. Although you did have the first pick on the home, they cannot guarantee that you are getting approved for the loan. This is no fault to the landlord.

If you were having a hard time getting approved for a loan before due to poor credit prior to the lease agreement and didn’t make any effort to work toward better credit, or something happened to your credit in the few years you were in the home, it won’t matter. Unfortunately, you will still be denied.

You will lose the money you put into the home as well.

Prior to signing your rent-to-own lease, you should still meet with a mortgage banker to know what you will need as far as payment, scores, etc. go to close when it comes time for the lease to end and the loan to kick in.

 

free credit repair consultation

The Fine Print

There are many things you need to go into detail with the seller on prior to agreeing to a rent-to-own home. As with a lease, there should be other factors taken into consideration prior to signing on the dotted line.

  1. Are there any liens on the current home?
  2. What will you do if you don’t decide to buy it?
  3. How does the home inspection work?
  4. How much will I buy it for?

Liens On The Home

This is vital! There should be no reason to argue over who owns the title to the home. Speak with someone about all the details, complete research and make sure you have a party involved that knows what they are doing. There are way too many scammers and companies out there that can lie and pull the wool over your eyes and you’re stuck with no where to turn when you thought everything was going to work out just fine.

Taking A Pass

Let’s say you lived in the home for a few years and decide you don’t want to buy it. What then? Double check that the contract has a clear and defined understanding of what will happen if you should choose to not purchase at the end of the lease. The unfortunate part is that the money you did spend is nonrefundable.

Inspection Time

As with any normal inspection, the condition of the home should be documented and photos should be taken off interior and exterior and any major concerns.

Purchase Time

You and the seller will decide on a price up front. With the purchase price being locked in, this does not protect you from the possibility of the home’s value dropping. If that is the case, it will not save you from the price dropping. You will still be held at the price that was decided on at the time of the contract unfortunately.

Not to mention, if the current landlord is not financially sound and possibly loses the home while you are the current tenant you most likely lose the option to purchase and again, the money is gone with the wind.

In Closing

There may be some benefits to your family signing a rent-to-own option but this is one to be weary of when walking through the process. There are home loans out there you can apply for that will work for you, especially if you are a first time home buyer. There are also options out there to not only help you improve your credit scores, but also work with you on smaller down payments and lower scores (although your interest rates will be higher).  If low credit scores are keeping you from improving your living situation, please contact us today for a free credit consultation. We have helped over 30,000 clients improve their scores. Let us get you back on the path toward financial freedom.

Check out Credit Law Center’s infographic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic