Credit Repair Schemes, Lenders are FINALLY Acting....

When at a wine tasting event last week, I was speaking with an underwriter from a large insurance personal lines company and was surprised to hear that lenders and their role in credit repair schemes is a popular topic around the water cooler. Being  featured more and more in the news, these large banks and private lenders are stepping up to the plate to help the average American and stop these credit repair schemes. Even though they seem to stem from the mortgage industry itself.

Take a hypothetical situation as I will outline below about somebody with a low credit score and it does not seem as “hypothetical” anymore but “average” in todays market. With the savings rate at a level that it has not seen since the great depression, it is no wonder.

Brian Paltery was living in Florida and trying to buy a home  for $420,000. He was happy where he was and wanted to settle down. Living only a short distance from Fort Lauderdale, he wasn’t complaining much. When he approached a lender to get the home loan that he needed. He discovered that it was not as easy as he thought. Even with his long standing employment record and great income, many things came up when his credit report was pulled.

And Brian was shocked. He had thought he had paid all his bills on time and was happy with all of his answers on his credit applications. When they pulled his credit, he found himself to be the victim of not only identity theft in several different ways, but also that his wife had not always paid his television and phone bills on time.

Brian had options of course, as anyone finding themselves with a low credit report will find. He could spend the time to educate himself and spend the time necessary to fix his credit score or pay someone to do it for him. Brian had two kids and a full time job and just didn’t know where to go. Unfortunately for him, he chose to take the easy route and pay someone because he felt it would take too long for him to do it.

After paying upwards of $1,300 of fees, he did receive a higher score and was able to obtain that loan perhaps a couple of months sooner. This kind of practice however is finding a definite opponent and is seriously worrying most people currently in the mortgage industry.

Enough to make the industry shake in its boots, lenders have found that these practices will do nothing more than create another high impact home loan loophole. Federal regulators are saying currently that they are on top of things and looking into it with a very quick reaction.

Even the Fair Isaac Corp. FICO, the creator and producer of the algorithims that run the credit scoring system, have announced plans to do something about this new and growing credit scheme practice. It has been said that they will change the current scoring system for credit in a way that will prevent this problem.

It’s really unfortunate that Brian didn’t understand that with the proper credit repair education, books, programs, etc. , he could easily raise his credit score in only a matter of months and obtain that interest rate that he needed for his new home loan. And the lenders were definetely more intereated in him once his credit score was raised to a higher rate.

Credit Repair Schemes will hopefully find a reputable enemy in the mortgage and credit scoring industy and be put to a halt. Although this is wishful thinking, hopefully at least something can be done about this practice or we will end up with more people buying homes that they certainly cannot afford.

Alhtough thing worked out for Brian in the end, with a little education and the right book, it is easy to fix your own credit score and raise it to the score you have in mind. Saving you a ton of money yearly once it is at a high level of 700 or above, your credit score plays a huge role in your finances and financial freedom. You can do the same thing that these credit repair companies do but for yourself. Using a very small budget of less than $100, and that includes the book, and all of the postage for letters to the credit bureaus, one can raise their credit score in only 90-120 days.

It simply takes a little education and the right person whosing you the way to raise your credit score now before the game changes and Fair Isaac Corp., FICO changes the way they calculate credit scoring once again. Its time to save yourself money and get those interest rates you deserve and say you did it by yourself.

Consumer Publishing Group has created one of the most comprehensive credit repair manuals available, called The Credit Secrets Bible TM. The Credit Secrets Bible has been in print since 1994 and is absolutely essential if you are serious about fixing or improving your credit. To learn more about the Credit Secrets Bible, visit the Credit Secrets Bible Website here:

CREDIT SECRETS BIBLE

Author: Amy Pedersen, is penned as Your Credit Score Secrets featured Credit Insider whose articles provide insider tips and insightful knowledge of the credit industry. Her article topics range from the nature of credit reports to the underlying problems facing credit scoring and the laws which support credit report repair done by the average person.