A Ridiculous Credit Repair Claim
By Mike Wayman
I’m sure you’ve probably seen some pretty funny advertisements for credit repair. Some people claim to be able to give you perfect credit in 30 days or less or that they’ll guarantee you a line of credit or other financing. Perhaps they’ll even claim to handle everything themselves even filling out credit applications on your behalf. Here’s an example of a completely ridiculous credit repair claim:
So what’s the big problem with the claims made by this individual? First, this individual claims that by removing a tradeline you don’t have to pay for the remaining balance. This is patently false and will lead you towards terrible credit, or worse, bankruptcy. The second claim that this individual makes that is patently false is that “any time something that is on your credit report is not there anymore, it improves your credit score.” This is patently false as well. Having a robust credit profile that shows a positive payment history is a good thing. Deleting everything is not a good thing.
If you want someone to help improve your credit that understands the process give us a call today!
Credit Debt Trap #9
By Mike Wayman
Understanding the credit debt traps that exist and how to avoid them is extraordinarily important but understanding why these debt traps flourish on a larger scale is helpful as well. So why then are we so dependent on credit these days when just a generation or two ago debt traps were not as prevalent? The answer is that the standard of living in America is slowly getting worse, meaning, it takes far more income these days to live a comfortable lifestyle, a lifestyle without having to depend on credit to afford the basic necessities of life.
Whereas a generation or two ago most people could live on a single income it now takes a dual income household to afford basic transportation, essential healthcare and insurance and basic housing. Not even considering a mortgage, getting by these days is hard. This makes credit not only appealing to the average consumer, but a necessity.
Credit dependance is perhaps the biggest reason that people get in to financial trouble. It is the reason why so many people get behind on their payments. It is the reason why so many people have bad credit. Credit repair cannot fix the larger problem. Understanding how the system works can help you avoid financial problems and, perhaps, this is the most important thing we can all do to avoid financial problems and tarnished credit.
Getting out of the credit system is difficult but for long term security it is becoming a necessity in life. Establishing a budget, living within your means and avoiding credit by any means possible may seem difficult but it will pay off in the long term.
Credit Debt Trap #8
By Mike Wayman
How are you “sold” to other debt collectors? This is an interesting concept. When you apply for credit one of the things that many people don’t ever realize is that credit issuers have the right to sell or assign your debt for pennies on the dollar to debt collectors. This is how and why many people begin receiving collection notices from agencies that seem to have no relation to the original creditor. The worst part about this whole process is that the collectors can make far more money than the original credit issuer.
If the collector buys your debt for pennies on the dollar and you actually pay the debt the profit margins are enormous. The benefit for the original creditor is that they earn some money from the sale of your debt but they also gain a large tax break. They get to write your debt off as a loss and this really helps credit card companies decrease the taxes they have to pay. It’s a win-win for the credit industry and a big loss for the consumer.
What’s even worse is that when you have a collection, it hurts your credit in two ways. First, you have a negative tradeline from the original credit issuer. Second, you can have a collection for the same debt on your credit from the collection company. This can make the credit repair process exceedingly difficult. If you want help stopping the damage to your credit then call us today and we will help you repair your credit fast.
Credit Debt Trap #7
By Mike Wayman
Trillions of dollars are made off the backs of Americans everyday. Debt is perhaps one of the best ways for people to rake in billions, especially from people that have the worst credit. It should make sense that if you have bad credit that you’d be considered a bad credit risk and that executives at major credit companies would want to learn how to avoid extending credit to the credit challenged. Doesn’t it make sense that the credit challenged offer the worst possible return on credit? This is, unfortunately, not the case at all. In fact, its actually the opposite.
The people with the worst credit represent the most income to a major credit issuer. Late fees, high interest rates and penalties are easily assessed to people with sketchy credit and the credit companies are well aware of this. SO, does this mean that credit card companies are hoping and praying that you won’t pay off your balances in full or make minimum payments on time? I would venture to say “Absolutely Yes!”
Credit issuers don’t care about you personally and neither do the debt collectors you are “sold to” after the credit issuer realizes there’s nothing else they can get from you. The moral of the story is be very careful when applying for credit if you have a less than perfect credit history. You may very well want to consider credit repair before you apply for new credit to avoid debt traps.
Credit Card Debt Trap #4
By Mike Wayman
Using credit cards is perhaps one if the easiest ways to get yourself in to financial trouble. Not only are the interest rates enormous but the penalties, late fees, and cash advance fees can really get you underwater financially really fast. One of the best ways to avoid these common financial problems is to fully understand just how much the credit card system is rigged in the favor of the credit card issuer. It’s almost as if using some credit cards is like betting your savings at a casino: the house always wins in the end.
There’s a massive amount of stories about people that have fallen in to credit card debt traps and what’s mostly interesting to me is why the credit card industry as a whole isn’t being forced to go through a massive overhaul like the home loan industry lately. While predatory home loans can have a seriously detrimental effect on the lives of consumers many people don’t think that credit cards can be equally damaging. The reality is that falling in to a credit debt trap can seriously damage your credit long term. Many people will need help repairing their credit and we are here to help if you need it.
Credit Card Debt Trap #3
By Mike Wayman
Hopefully you’ve seen the last two posts on credit card debt traps. The first was a general introduction while the second covered a bit of history. The important thing to glean from these videos is exactly how credit cards negatively affect the financial lives of American citizens and how we can all avoid debt traps. Not only are these traps financially difficult to overcome, they often lead to a negative credit rating.
Read the fine print in all of the credit applications you are considering applying for. Determining if a credit debt trap exists can only happen if you understand the terms of the credit you are applying for. While many people never stop to consider the general terms of a credit card they really should. To me, it seems like we all simply trust large credit companies because we don’t think they would engage in acts that are fraudulent, deceptive or illegal. Think again!
If you are the victim of a credit card debt trap then please give us a call. We may be able to help you remove negative credit from your credit report caused by a debt trap.
Credit Card Debt Trap #1
By Mike Wayman
People seek out credit repair for a number of reasons. Not everyone seeks credit repair because they’ve had a serious hardship in life. Some people seek out credit repair services because they’ve fallen in to a credit card debt trap. This video is part one of nine video features on credit card debt traps and the ways that people fall in to them.
If you have been victimized by a credit card scheme you may very well be able to get the negative credit taken off your credit report. Don’t let the credit card companies take advantage of you. Call Certified Credit Repair today for more information on how we can help you.
What You Need To Know About Credit Repair Companies
By Mike Wayman
If you have recently applied for a loan than you understand how important the 3 digits of your credit score can be. Not only will those 3 numbers help you get a lower interest rate, but they could also prevent you from obtaining a loan in the first place. If you are looking to get a new car or buy a new house, this is not a problem that you want to run into.
Poor credit can be fixed over time. However, it is a process and it does not happen over night. In time, on your own, you can build a good credit record or repair a record that is unfavorable.
What happens if you do not have the time to wait it out? There are credit repair companies out there that specialize in helping individuals repair their credit. These companies work on your behalf to boost your credit score. Beware though. Not all credit repair companies are created equal. The good companies will usually charge a monthly service fee and they will also have testimonials from previous customers that document positive experiences. Look for this type of credit repair company if this is the route you need to take to fix your credit.
President Obama Announces Sweeping Regulatory Reform
June 19, 2009
By Mike Wayman
In an effort to protect American Consumers from future financial collapse, the President has recently announced regulatory reform that seeks to protect consumers from the abuses experienced in the last ten years. Most of the reform centers on the mortgage industry.
The reform includes the creation of an independent agency to regulate consumer credit of all forms designed to protect the consumer from the abuse of lenders of all types. All banks and non-banking institutions that offer credit will fall under the regulatory power of the new agency.
While consumer groups, in general, are very pleased with the new announcement, lobbyists from the banking and financial services sectors are up in arms. While it’s understandable that bankers and lenders would be upset by further regulation, consumer groups argue that the abuses of the last ten years call for more consumer protection.
In my mind the real question is whether or not expanding government to protect individuals from corporations will actually make a meaningful difference. When it comes to sweeping regulatory change, many people will make off the cuff remarks about their thoughts, feelings and opinions regarding the expansion of government. Personally, I have a more “wait and see” attitude. Let’s see what this new government agency is able to do first and then pass judgment later.
Credit Repair Strategies to Avoid Like the Plague
June 18, 2009
By Mike Wayman
There are vast numbers of credit repair plots and schemes proffered on the Internet. Some are designed to merely take your money. Others, however, while also designed to take your money, can get you in to serious legal trouble. Let me introduce you to the “Personal Credit Number” sometimes known as a CPN or PCN. This strategy requires you to get a new Employee Identification Number from the Internal Revenue Service and the “credit repair” company tells you they will create a new credit profile for you utilizing this new number.
This “new” credit profile is supposed to be a fresh start. In reality, using this new credit profile is considered a misrepresentation of your true identity and is nothing less than fraudulent if you apply for credit using this number. If you default on credit utilizing this fraudulent identity be advised that the credit issuer may very well come after you for fraud and they will be well within their rights.
This scam isn’t new and it has been used to defraud creditors for years. Some of these scams are simple while others far more ornate and calculated. For instance, some companies actually sell credit profiles with active CPN numbers and tell their clients they will never have to pay their debts back. These companies may promise signature lines of credit and credit cards as part of the package in their service agreements.
If anyone tells you they will create a brand new credit profile for you utilizing a different social security number or a CPN stay far, far away from the company. You can find yourself in a heap of trouble.
Credit repair isn’t easy and some people make it seem as though they can perform miracles. A CPN and a new profile may not be a miraculous achievement as many people have acquired these “new credit profiles” but it certainly is something to stay away from.
