First Connecticut Mortgage Co. Newsletter September 2006

All Credit Experts Are Not Created Equal

Brought to you by Reynold Nippe

Over the last few years, the important issue of credit awareness has gone mainstream. Every time you open up your web browser or your newspaper, there's another article on how "you too can have a 780 credit score." Make no mistake about it, credit education is critical. Indeed, good credit is the linchpin for long-term financial success. And, I am pleased that the important issue has stepped out of the shadows and into the spotlight where it belongs. However, the problem with the mass dissemination of this truly important information is that not all of it is accurate or even correct. And it is virtually impossible for a consumer to separate out the truly helpful information from a well-turned sales pitch or a well-meaning, but misguided report.

I have determined that the media proliferation of credit advice ranges from superficial to potentially destructive. It's abundantly clear to me that many alleged experts who offer tips on repairing credit have never repaired anyone's credit. So how do American consumers benefit when a self-proclaimed "credit expert," who has never repaired anyone's credit has their face splashed across a mass-produced, nationally distributed credit repair kit? This misrepresentation is extremely problematic when you face a serious credit repair issue and you are unable to make a clear choice for how to solve the problem and get the financing you need at a price you can afford.

As a mortgage expert, I know a thing or two about credit. And I benefit immensely from long-term professional affiliations with trust-worthy credit improvement and education experts. By teaming up with real credit repair experts, rather than some fly-by-night credit counseling service, I can help individuals and families enjoy a brighter future by fulfilling their dreams of homeownership. It is very important to me, as your trusted mortgage professional, that you rely only on sources you can trust. For example, sites that offer true and correct information include:

• http://www.myfico.com/
• www ftc.gov
• http://www.creditresourcecorp.com/
• http://www.transunion.com/
• http://www.experian.com/
• http://www.equifax.com/

As far as specific credit problems, I can honestly tell you that you never need to give up on a home, or settle for less than the best mortgage terms on the market because you think your credit is irreparable. It's not. Credit repair is completely doable. Trust me, I have seen it all, and there is very little that can't be fixed provided you know the right resources to tap. I do.

I am affiliated with top-notch credit repair experts who have successfully repaired thousands of credit scores. One of my affiliates, Credit Resource Corporation, has offered to share the following success stories with me so that I could share them with you.

THREE CREDIT REPAIR SUCCESS STORIES

Case One

A client came to CRC with a 602 credit score. Other than a few aged late pays, he had a fairly decent credit history. As a result, he could not understand the reason for his low credit score. He asked CRC to figure out why. After evaluating his reports, they found a home equity line of credit (HELOC) account listed as a REVOLVING account. This account had a limit of $49,000, but had a balance due of $49,500. As a result of the type of account attached to this credit line, the client appeared to have a credit card (revolving) account that was over its limit.

There are two reasons why you never want to go over your limit. They are:

1. Going over the limit gives the impression that you are in financial distress.
   
   
2. Over limit gives the impression that you do not follow the agreements made with your creditors making you a bad credit risk. It appeared that the client had agreed upon a limit of $49,000, and then unilaterally opted to exceed that limit.

Since a HELOC is actually a secured loan, CRC worked with the credit bureaus and the lender to change the type of account from "Revolving" to "Other". (The first preference for changing the type of account in this situation is "Installment", but "Other" is a good second.) Once CRC managed that single change, his score shot up 100 points, literally overnight. Why? Because they removed an over the limit revolving account from the client's credit profile.

Case Two

Another client had immaculate credit until she incurred a 30-day late on her mortgage payment. This caused her score to go DOWN 80 POINTS. The bureaus reported the late payment in January, but the client knew she wasn't late in January, but rather in December. So, CRC called the creditor, and without acknowledging the December late pay, explained that they mistakenly reported a 30-day late in January that had not occurred. After the creditor confirmed that the client was not late in January, the creditor willingly faxed a letter to the client confirming their error. The client took the letter to her mortgage broker who performed a rapid re-score. Her score shot up 75 points immediately. How did CRC manage it? The law states that creditors and bureaus must remove inaccurately reported information. That's why it is so important to verify all reported items on a derogatory account before conceding. Yes, in this case, the client was late in December. However, the report did not reflect this fact. Therefore, by law, the creditor had to expel it from her reports.

Case Three

In 80% of all cases, bankruptcies are inaccurately reported. So, whenever I have a client with a bankruptcy, the first thing I tell them to do is verify that every item included within the bankruptcy is accurately reported. This serves on a general basis, but came through in spades just a couple of months ago when CRC had a client with a 560 score. After conducting their standard bankruptcy re-listing service, cleaning up the inaccurately reported items, the client's score went up 60 points in just 8 weeks. She had a bankruptcy and her score jumped to 620. How did CRC do this? Well, she had four bankruptcy accounts that were all shown as "charge-offs". Two of them had past-due balances. So CRC had the type of account for all four be changed to "Included in BK" and in doing so, the past-due balances were zeroed-out.

Know the Ropes

As clearly illustrated by those success stories, credit repair miracles are real and within the reach of those who know the ropes. That is why I want you to make sure you trust the person who gives you advice regarding your credit and financial issues-they can do great things. The right advice will advance your goals, while the wrong advice will take you even farther away from them. In fact, a wrong move can further lower your score by as much as 80 points. I want to empower with the proper resources regarding credit education and credit repair so that you are able to make the best choices for you and your family.

I know you are inundated with an abundance of seemingly compelling, yet incorrect messages about credit and how you can fix it. That is why I am committed to helping you make sense of it all. I have partnered with credit education and repair experts, and together, we can provide you with sound advice and the professional assistance when you need it most. In short, we are here for you.

In Conclusion:

Good credit doesn't start with a big paycheck. It starts with knowledge. There is a profound hunger among consumers for credit education. This demand has forced an onslaught of journalistic stories and tips. But, as with every other well-worn advice, not all of it is good and some of it is downright bad. I am committed to clearing away the smoke for you by providing you the kind of credit education that can make a tremendous difference in your future. If you have questions or concerns about your credit score, improvement or repair, you are always welcome to contact me. With access to the most professional and ethical credit education and repair experts, we will work together to get you the answers you need.

All the best.