Credit Repair actually works. I too was skeptical of the whole industry at one time. Currently I am one of the office Managers of a Credit Repair Company where I have personally seen clients that were turned down, or declined previously on a home loan, go through one of our programs and later qualify.
I am interested in learning more concerning the real-estate and mortgage industry on a whole, and how credit repair can be more effective and beneficial to those clients and companies that are seeing declines from time to time.
I agree that understanding credit is really important. But I have a small correction. Credit strategy is important not credit repair. Credit is like a broken leg. Only time can repair it. You put a cast on it to keep it straight but only time can heal it. Credit is the same. Credit repair is writing letters to all the bureaus disputing in mass and hoping some bad credit falls off. That doesn’t work. What works is to pay your bills over time. When I got started in real estate I knew I had good credit. I was paying off credit accounts and closing them one by one. I applied for a mortgage to get preapproved for my first investment property and my mortgage broker called me and said that I had great credit but a lousy credit score. I had to learn that a credit score is an algorithm. It is based on several factors and good credit is only one of those factors. In order to get a really high score you have to have accounts that have age on them. Since I kept closing accounts I was closing the older accounts because they had the higher interest rates. That along with other factors was keeping my score down. I went to a credit strategist and he taught me how to structure my accounts to maximize my score. If someone does not have any credit accounts and tell you they have this high credit score you don’t even have to look because they don’t. They may not know they don’t just like I didn’t. You have to have credit to have a high score.
Different types of credit gets the score high also. Payday loans get the lowest bang for your buck and mortgages get the most. Also balances are important. You have to have balances but they should be low.
I don’t put stock in anything that I can do myself. It’s not hard to repair your own credit, you just need to do a little research in how different things affect your credit, and then do only what positively affects it. For instance, not taking out too big a percentage of our loan limit, paying your loan payments every month, making sure all your bills are paid, etc.