“I’ve Been Working with a Credit Repair Company for One Year”

When I hear this kind of statement it drives me crazy and worse yet, I have been paying them $300 per month.

I asked what his credit scores were and what are they now. The mid score was 565 and now it is 581. I asked if he was advised to set up a couple of secured credit cards to boost the scores, unfortunately no such luck.

Fixing existing credit is great, but once it is fixed and there is nothing on the credit report that shows credit cards or installment obligations that are being paid each month, the scores will not improve very much. Lenders want to see re-established credit and decent credit scores.

After reviewing the credit report there were 3 items settled and nothing that is currently being paid every month. If he would have arranged for a couple of cards when he started, his scores would most likely moved higher 50 to 75 points.

Unfortunately paying nearly $4,000 to a credit repair company didn’t accomplish very much. Done right, he would already be searching for a home.