Is Credit Repair the Ethical Way to Handle a Major Problem?

A lot of people ask if it's ethical to try to take off legitimate bad credit.

American consumers have been treated unfairly by the credit-ranking system. "Credit repair" is a phrase that has ended up with a bad reputation, and it has been associated with scams. The outcome is, a lot of times we end up having to defend our work of assisting other people to fix their credit.

The experience of being in credit prison does have other solutions to the issues that are harming the credit report. Rather than a person seeing the credit report as evidence of poor credit, he or she should see it as an allegation that often goes unchallenged. The people we help with this are generally saying they are not guilty when they join up to use our preferred attorney option to defend themselves.

Our preferred lawyers make the credit bureaus prove their claims. If the bureaus state that they have previously examined the situation and the charge is real, then this decision is debated. We have found that the majority of credit report accusations are incorrect, and that is when they can be removed. It makes good sense ethically to take a bad credit item off your record.

Our society has origins in capitalism, and the credit bureaus apply consumer personal information to their own benefit. The legal system pledges an oath to be honest, equal and generally good; however, credit bureaus don't do this. Why should any person be forced to help any company, not to mention big businesses, when doing this could mess up his credit and financial situation? The credit bureaus would hold onto all of the credit information, real or fake, forever if the government didn't make them get rid of the many details after seven years has passed. If not for this law, credit bureaus would be able to keep many items on your report after seven years has passed. If good credit accounts can be taken off after a brief time period, then why don't you take off bad credit accounts before the seven years is up?

Credit bureaus don't care about their effect on customers. Profits -- not the rights of the consumers -- are the main reasons for their judgment.

Judging a person's credit from their past credit isn't always reliable. It hurts all people to have nice people thought of as being deadbeats. A number of policies and methods utilized by credit bureaus appear to be harmful to the consumer. Because of this, we disagree very much with the current standards of credit reports. The debtor is chastised unfairly with seven years of credit prison (with 10 years for being bankrupt and some court judgments). Credit bureaus have never conducted any research to figure out if seven years is enough time to re-establish good credit. The seven-year mark is a random choice. The facts are that, based on what Dr. Bonnie Guttion, consumer affairs adviser to President Bush, computer models that foretell credit details which show "nearly all details that are over two years old are not important"; also, our customers think that seven years is too much time. After a few years, the majority of people are capable of completely recovering from a financial crisis. In spite of this, they are usually made to live a poor life style and pay a lot of interest on loans and wind up being rejected for loans because of the information on their credit reports.

Even though credit bureaus boast of a 1% error rate, that isn't really accurate. But, other research not conducted by the bureaus reveals that errors happen at a rate of almost 79%.

One credit bureau confesses that they have an error rate of over 50%.

The legal agencies stubbornly oppose that these errors be fixed. It is very expensive for them, spending time as well as money. The truth is, credit bureaus profit from selling your credit history. This vast amount of information is not handled by anybody but them. A person can't win if they are valuing someone's privacy. People have lost their jobs and public standing due to errors on their credit reports.

There has been a high amount of the worst offenses like file errors and mis-merges. This means that their should be a big scale update for the American credit reporting procedures. When an individual's information is assigned to the incorrect file, it is called a mis-merge.

Consumer credit reporting standards are not only used in the United States, but other countries use them also. Most countries judge credit considering the recent credit standards. For instance, Equifax and Experian in England can't hold onto credit details after five years. The credit reporting system in America needs to be changed. There is nothing wrong with wanting to be sure your credit report is correct. Be assured that it is not unethical or wrong in any way.

Our clients can be trusted and have been totally redeemed from hardship, as well as they are elated to come back to the credit economy and be financially trustworthy. Our aim is to assist people to avoid predatory lenders.

A person can lose thousands of dollars because of bad credit and can end up in a vicious cycle, from which escape is virtually impossible. Many people repair their credit for refinancing, or to purchase "double the home's worth" at almost the same cost. For people who have credit issues, it is difficult to pay another person's mortgage. A lot of renters have finished paying another person's mortgage, but still are not able to buy their own house because of bad credit.

Unfortunately, a lifetime of good credit can be overwhelmed by just one bad item on your credit report. Unfortunate consumers end up with no choice but to reside in neighborhoods that don't have a nice reputation. Don't let this happen to you....visit www.queenofmortgages.com to learn more about reparing your credit so you too can realize the American Dream

Bad Credit a Bigger Risk than Terrorism...

Bad credit a bigger risk than terrorism…

Yes according to an article written by Dan Seymour of the Associated Press on Monday, the biggest short term risk to our economy is bad credit. According to a survey of 258 members conducted by the National Association of Business Economics (NABE) credit has replaced terrorism as the gravest immediate threat to our economy.

It almost sounds surreal but I actually agree with the findings of the survey. As we continue to deal with the “credit crisis”, the issues have trickled down into our everyday lives at a record pace. The stock market being our first indicator, followed by the fact that 2 million people are expected to lose their homes this year to foreclosure. Even the big boys like Home Depot are taking the hit. Folks, real estate drives are economy far more than we would care to admit. Ask the car dealers, airlines, and other companies that depend on high discretionary income if real estate drives our economy. With less people able to tap cash/equity out of their mortgages through refinancing, Realtors not spending at a very high clip either, and the 100,000+ loan officers who have left the industry our entire economy is feeling the crunch. It is a serious trickle down effect. Builders are building less new homes being which means less work for the blue collar individuals ultimately leading to higher than normal unemployment rates.

Whoever though that a few missed payments here and there would supplant Osama Bin Laden and his terrorist goons as one of the greatest risk to the USA. I believe it goes back to my blog from last week about “Was the Mortgage a Mistake”. The consumerism mentality of our culture has left us in a very tough position for now. In a perfect world maybe we should have purchased smaller homes with stable fixed rates and chose not to drive our gas guzzling oversized SUV’s. But who know the bottom was going to fall out so quickly.

Listed below are 5 tips I encourage you to use, so we do not continue to add to the threats bad credit is placing on our society:

1) Stop using the credit cards unless you can afford to pay the balance in full for that month. This tip alone will give you a raise in income by having your money work harder for you because it won’t be spent paying high interest credit debt.

2) Pick up the book Smart Couples Finish Rich by David Bach. Married or single this book has some great tips on budgeting and other financial tools that will help you weather the storm and plan for the future


3) If you know you are going to be late contact your creditors in advance. Most creditors will be more forgiving of customers who are proactive about there obligations.

4) Don’t run from your history. It is important to review your credit at least one time per year but twice a year is ideal. You can receive a free report at www.annualcreditreport.com it really is true knowing is half the battle.
5) If you have derogatory or past due accounts that are now collections and charge-offs try to call and negotiate settlements with the creditors. My company has created a script to help our clients with the calls to creditors.

In closing, bad credit is not only a greatest short term risk to our economy; it can become the greatest risk to our personal quality of life as well. Today, credit is reviewed for everything from car insurance rates to homeowner’s insurance rates. Let alone applying for a mortgage with low money down and attractive interest rates. Even the ability to get a cell phone with an affordable, economical plan is nearly impossible when you have poor credit. Some employers even view credit, so it could have an affect on what job you get. Don’t let this happen to you!

If you have good credit by all means keep up the good work. If you have some credit challenges start working today to better your scores. Don’t let the four-letter word FICO be your downfall, because you will feel like your financial life is under terrorist attack!

The Credit Crisis....What Does It Mean To YOU

It means plain and simple, if you are going to be in the market for financing in the next 18 months you need to consider this. As huge companies close their doors so goes the creative mortgage financing. If you are a potential buyer you can no longer afford to sit on the fence. Beware that the volatile credit market can change overnight which will leave fewer options for financing. This is even more true for those looking to refinance.

Sellers need to be more flexible and willing to accept reduced prices. As the mortgage products diminish, the pool of qualified buyers will decrease as well. It is no time to "holdout" for the best price possible.

As an educated mortgage professional, I will utilize experience and resources to help you or your loved ones to navigate through these turbelent times. Don't leave your future in the hands of some random mortgage provider. I'm local, accountable, and you can trust I will do the best thing for you....