Today’s topic is credit repair. I’ve brought in Joe Chavarria, owner of The Credit Agents, to answer some questions you may have about this subject and talk about how his company may be able to help you.
The Credit Agents helps many first-time homebuyers who have plans to purchase a home in the near future but are being held back by their credit scores. Joe started his company back in March 2012, and some of his very first clients were able to buy a home within just a couple months after going through their program. When he saw this happen, Joe knew he’d found his calling.
According to Joe, the credit repair process itself is very unique. There are a many consumer protection laws that exist, but oftentimes, there are accounts on people’s credit reports that aren’t reporting with 100% accuracy, verifiability, and/or timeliness.Some of these items may be older and past the statute of limitations date, but whether these items are positive or negative, they must be 100% accurate, verifiable, and timely.
The Credit Agents has a behind-the-scenes team specifically tasked to go through their clients’ credit reports and review which negative accounts appear to be questionable, inaccurate, or incorrect. The details of those accounts are then taken through a very aggressive process of disputes and challenges.
Disputes are used primarily when dealing with collections accounts. Joe and his team will ask the collection agency to verify that the account is accurate and they have proof to collect the debt. The collection agency has 30 days to do this. In most cases, collection agencies don’t have these kinds of records. They’re just collecting on behalf of other creditors, so they’re not given proper materials to verify if a consumer’s account is accurate or verifiable.
A lot of these collection accounts, then, will come off throughout their process. If they don’t come off in the first month, they’ll come off in the following months as they demand more information. Challenges are used with harder items. In these cases, they ask the credit bureaus themselves to supply proof that everything is accurate.
“Every item on someone’s credit report has to follow strict standards to be able to continue to report,” Joe says. “But oftentimes, these negative accounts, collections, late payments, charge-offs, and even public records don’t play by the rules. We essentially do our part to get them to play by the rules or get off the credit report.”
Asthey work to remove negative information from credit reports, they’re also simultaneously educating their clients about hot to establish new credit, what credit to avoid, what kind of balance to maintain, etc. Someone who tries to repair their own credit without having any previous knowledge about it can get into trouble because they don’t know where to begin or where to go. An expert, on the other hand, can condense 10 years’ worth of knowledge and education and segment it so clients can understand their program and see its results.
“We work toward removing negative information while teaching them how to establish positive information. The combined efforts are what gets someone to a higher credit score.”
This is the reason why I tell my clients to sign up for credit repair - so they can have a professional on their side who understands credit repair laws. There’s nothing wrong with trying to repair your credit on your own, but the credit repair process involves handling sensitive financial information, and if you aren’t an expert in credit repair law or you don’t have a professional financial background, you might end up doing more harm than good.
If you have any more questions about credit repair, you can reach Joe by phone at (281) 756-7060 or visit www.thecreditagents.com.
If you have any real estate needs, don’t hesitate to give me a call or send me an email. I’d be happy to help you.