Being in this industry since 1997…I’ve seen my fair share of people expecting you to deliver what they are NOT willing to give to themselves. That’s across the board from Mortgages to real estate and now in credit repair. Clients often are expecting miracles but fail to realize that when it comes to the success of their personal finances…it’s a cooperative effort. In short, that means…I’ll do my job, but YOU must be willing to do your part too!
Let’s dive into some of the questions and/or scenarios I often encounter.
1. Will I have a 700-credit score when you are done?
The honest answer is…I CANNOT guarantee you a final score! No one can. If anyone ever does…RUN!! Now, while our goal is to get you at a 700 or above, the truth is…some of you won’t make the cut. Because each file is different, you must understand that there is a specific algorithm that the bureaus use to calculate this 3-digit number across the 3 major credit score providers. This does not mean you cannot reach your goal of #creditXcellence – it simply means that once we clean your file, if you are not yet at a 700+ FICO score, there is just more work that will be needed to get you to that goal.
2. It’s been 6 months, why isn’t my file finished yet?
When in the credit restoration process it’s important for clients to understand that when you work with a credit repair specialist you will NOT see results overnight. It’s impossible to UNLESS that person or company is doing something unethical. If they do anything that is not above board, then YOU are the one whose name is on the line. So, when you employ someone to handle the most important determining factor in your personal and professional finances, it’s important to want it done right and not just done fast!
That being said…we are not the credit bureaus. We are at their mercy when it comes to the response times that occur. If we could get your file done in 30-days, trust me, we would (well most of us anyway) 😊! But the truth be told, the “average” time my clients spend in credit repair is 6- 9 months but there are times when files are done in 3 months and other times when files are done in 15 months. 15 months is a rarity, but it has happened a couple of times.
What I (and others in my industry) want you to understand is that we are working our hardest on your behalf but when a monkey wrench is thrown into our plan (i.e., COVID-19) …and it takes bureaus 45-60 days to now update files and not 30 (as it once was) …we ALL must make the necessary adjustments. And remember, it did not take you 6 months to ruin your credit, so please be patient with those you’ve entrusted to restore it. This is not saying give them 2-3 years, but, if you are seeing results (even small results), give them the time to nurture your file the right way to get the outcome that you need.
3. Applying for credit while in credit repair
Now, I understand that there are times when an emergency will arise but if you are in credit repair and you continue to apply for credit…you are extending the time for us to complete your file (that’s a fact). Any activity that is present puts us behind at least 60-180 additional days so please keep this in mind. This is honestly a breach of contract (based on the agreement you signed initially) but, again, I (and I am sure others), understand that if your car dies…you must get another one.
Just know that when searching for a car (with unfavorable credit), you are not only subjected to unusually high-interest rates but also, a lot of inquiries. This is called “shotgunning” when an F & I manager at a car dealership will shoot your application out to 10, 20, or more banks hoping that one of them will approve you for a loan. So, if you already have inquiries that we are trying to remove, and you add 25 more…this will cause a dilemma and/or a delay.
4. Not keeping your monitoring account active
When you sign up to have your credit worked on, you also agree to keep your credit monitoring account active. This tool is how we monitor what’s going on with your file and you can as well. It is a part of the process and needs to remain active. Constant emails or phone calls reminding a client to pay their monitoring is counterproductive and causes so many delays. In addition, this is also a breach of contract which can cause your file to be canceled immediately. Most people see this as an “extra expense” instead of what it is…an insurance policy for your personal credit.
You are investing money to restore, rebuild and replenish your personal credit…the main resource that will either get you approved or denied for loans and/or credit. A resource that can change your career, your finances, and your zip code for the better. Wouldn’t you want to protect it?!!
5. My scores are in the 700’s why am I not being approved?
Chances are if you have a score that high and you are being denied for credit and/or funding…you have a thin credit file. A file with limited credit is not approval-worthy, mainly because in the bank’s eyes, you have NOT proven yourself trustworthy.
You can have one credit card reporting positively for a few months and be issued a 700-credit score (in this instance), your score doesn’t mean anything.
If you are someone with a minimal credit reporting history, you are a great candidate for the credit boost program. This is a part of the credit repair process, and you can use these resources to enhance your file so you can achieve your goal of approval.
Please note: DO NOT become a person who just applies for credit randomly. You will do yourself a disservice and ruin your credit in the process. Too many inquiries will trigger to the bureaus and the banks that you are in a desperate situation. When this happens, the computers will issue an automatic decline. The maximum number of inquiries in a 12–24-month time period should be 6. You must learn to be strategic in your search for approvals. Don’t apply for every store card that offers you 10% off your purchase…it’s not worth it. You are only digging yourself in debt and racking up unnecessary inquiries.
Remember building a strong credit profile takes patience too.
6. My score is dropping while you’re working on my file WTH?
OK, first of all…this can or cannot happen. Again, each file is different. While you are in the credit repair process, you can expect your scores to fluctuate (it is what it is). We have zero control over this. Now, what I will tell you…if you are someone who has a high utilization percentage (over 30%), it will behoove you to work that number down to at least 25% or less. Doing this will allow your scores to increase. Also, do NOT pay your bills late while in credit restoration. If you are unable to keep your payments up-to-date and on time, then you DO NOT need to sign up for my or anyone else’s services. You will be wasting your time and your money doing so.
Another thing you should know is when you pay off a debt that’s an installment loan (mortgage, car loan, etc.), once that debt is paid in full, your score will drop. Yes, I know, it doesn’t make sense but when you make that final payment, reporting on that account will cease. Anything that is no longer reporting is not factored into your score any longer. Therefore, revolving credit (i.e., credit cards) is so important…because they never end (well, unless you don’t pay the bill). 😊 So, accumulating revolving credit is important. When using credit cards, make sure you can pay off what you are purchasing in full or at least under 30% of the balance owed so your credit scores don’t tank as a result of you wanting to shop.
Lastly…if you have any open accounts with positive reporting history…DO NOT close these accounts. Even if you have a late payment or 2, at some point those late payments will fall off and as time goes on the negative marks will “lose their power.” But because this you have history on this account, closing it will tank your scores as well. This is not beneficial to you in any way.
In Closing
When it comes to me working with clients to resurrect their dead credit files, I want to make the process as effective and as seamless as possible. I enjoy helping my clients get a new lease on their financial lives but it’s important that when you hire someone to work on your file that you have REAListic expectations.
So there are not any misunderstandings, I inform my clients (upfront) that we will need to work together in order for the file to move forward successfully. I understand that there are goals that are on your agenda and my objective is to help you reach them. Just know and understand that once again, this is a team effort. There are things you’ll need to do while we are doing what we have been assigned to do on our end.
If you have some financial goals you need to accomplish and you want to know if you are credit and/or funding approval ready, then take advantage of our FREE consultation by visiting: www.CreditLady.com
We look forward to working within the very near future!
Wishing you massive success…
Prosperously yours,
Monique Macklin
The Credit Lady
www.CreditLady.com
Office: (888) 718-6818
