Are you one of the 82%?
Last week my friend Darrell Hornbacher of Midas Financial explained exactly what makes up your credit score. I don't know about you but I sure learned some things that I never knew. Now here's a statistic that is kind of alarming: recent studies show 82% of Americans suffer from challenged credit. According to Darrell, excessive inquiries, late pays and other derogatory items usually account for the majority of credit issues. Below average personal credit scores are the main reason for loan denials - both personal and business. Look at it from a lenders perspective: low credit scores are proof you have historically handled your credit improperly. Why should they take the chance?
If you are part of that 82%, fear not! There are solutions. Within the Fair Credit Reporting Act is language that allows you to dispute negative items on your report(s). You can even dispute (and have removed) items that were legitimately reported. If you've been unsuccessful in disputing items in the past, there are specific reasons. Credit bureaus have built in mechanisms preventing frivolous claims. If your challenge isn't worded properly and legally it can immediately be thrown out. These are just a few of the many reasons your situation might not even get addressed.
How do you properly dispute negative items on your report? First, you need to deliver a properly worded challenge via the credit bureau website or postal mail. Once received the bureau has 30 days to respond to your challenge or delete the contested item. They must, by law, provide proof that the negative item is legitimate or delete it. It sounds pretty simple, but it is not. While you can repair your own credit, it is no easy task. Challenging the credit bureaus requires a very clear understanding of the Fair Credit Reporting Act and is extremely time consuming. I know that as business owners our time is extremely valuable,so I decided to ask Darrell what his thoughts were on hiring a credit repair company to do the work instead.
Darrell told me that there are scores of companies that will claim to be able to fix your credit, but buyer beware. Boiler room credit restoration companies are rampant, and because of this the BBB automatically gives credit repair companies an "F" rating unless they can prove they have performed in an exemplary manner over thousands of customers for a number of years. Out of all the companies out there Darrell only recommends one to his clients: The Credit Builders. This company has successfully raised the credit scores of over 25,000 clients by at least 75 points. They've never had a Better Business Bureau complaint and they offer a 100% money back guarantee! The Credit Builders used to have an 'F' rating with the Better Business Bureau like the majority of their competitors. No more. The BBB has seen the error of its ways.
I love what I've learned about this company and Darrell attests to their credibility. That's enough for me. If you would like more information personal credit restoration, all you have to do is send an email to firstname.lastname@example.org and type "credit repair" in the subject line. I encourage you to take this first step towards good credit. It will play an intricate part in the rest of the series as we are now going to start learning how to raise capital for our businesses. Again, that's:
Midas Financial Company