All Forum Posts by: Paul Ritter

You have a case which the CFPB would be interested in. Equifax is not the answer. If you have proof the 13 was dismissed (meaning last payment made) more than 7 years ago you should take your compliant to the consumer financial protection bureau. The credit bureaus are governed by the CFPB. You can only go to them when: 1. You have exhausted all other reasonible avenues 2. You have proof your claim is true/accurate.

I would be interested in your success / failure story. I have a company that disputes negative & inaccurate information at the credit bureau level but my service would be ineffective as you have already disputed this item too many times and have now "engraved" it on your credit report. They would view any additional disputes as frivolous even if it was initiated by a professional. You are welcome to call me directly for free advice. Paul Ritter 724 664-6078 Owner, My Credit Team

I have researched credit building cards. The most important element is they should report to all three credit bureaus. All of the credit cards on my web site report to all three bureaus. Go to www.mycreditteam.com and click on the Credit Building link. The jewelers club card is expensive ($99 application paid if you are approved) but the upside is worth it since they will approve you for a $5,000 card. Typically this increases the client's score by over 30 points.

Becoming an authorized user on a parent's card it good IF they have never been late AND they routinely keep their balance to limit ratio low. They potential drawback is you forfeit control of the payment pattern and when you are ready to pull your credit you may be at the mercy of how much they owe. 

No matter which instrument you use to conduct business (and I agree ROFR is they way to go) my advice is to keep the emphisis on it being a business transaction. That way the exit strategy is not a personal choice. 

Licensed mortgage originators have their limitations. First, unless you have a good relationship with one they do not like taking applications on folks they can't approve now. It costs them both time and money (there is a cost to them running a credit report). Secondly, they can only give you a decision based upon the prospect's current situation, most notiable current credit score. When you use www.screenthetenant.com you will get a full debt to income ratio analysis which is what you indicated their problem may be. They will let you know how much income they need to show in order to qualify, based upon their debt load and in consideration of the new home payments. Finally if their credit could use enhanced they will take care of that also. 

Did you know that underwriting has more tolerance for debt load if the client's credit score is higher? The $50 cost per applicant can be paid by the buyer and you will receive the reports and analysis.

On the credit side, go to www.mycreditteam.com enter the promo code of biggerpockets on the home page to get the discount of a free credit consultation. Use the schedule link schedule a time for your free consultation. They are the most aggressive credit enhancement company in the industry as they dispute all inaccurate entries each time the generate letters. Also they provide the credit bureau dispute letters too you so you can see what's happening along the way.

The answer is simple and inexpensive. To comply with affordability go to www.screenthetenant.com and pay $50. They will provide a full Debt-to-income ratio analysis in writing along with a professional assessment as to how long it will take to have the credit in a position to qualify for a bank loan (if needed). They will also provide credit restoration / enhancement services which your tenant / buyer will pay for. 

Don't try to work around compliance. Address affordability and credit worthiness by working with a professional who underdstands the laws. Their deliverable package satisfies the legal criteria and your creditbility is enhanced because your did what any investor with high integrity would do, which is set his tenant / buyer up for sucess!

John,

www.mycreditteam.com specializes in credit repair for the real estate investment industry. They are even endorsed by Ron Legrand (look in multimedia section). Use the promo code of "Biggerpockets" to unlock the full site and take advantage of their professional courtesy discount program. You can use the scheduling tool to set up your free evaluation.

What you are looking for is more complex than just credit repair. You want to work with a company that will help you qualify buyers, perhaps even do an affordability (Debt-to-income ratio) analysis, keep you informed of the buyer/prospects progress, provide not only credit repair services but give you an opinion of how long it will take for a prospect to become mortgage ready. That advice will help you set up your terms in a lease option. There is a company who does all these as their services are customized to cater to the real estate investment community. You can find out more about them at www.screenthetenant.com. Most credit repair companies get their leads from outside the real estate investment industry so their business model doesn't match your needs. That is why you will be unable to track their results, get an opinion, have a DTI performed etc...

Simple question... complicated answer. Two pieces of advice, don't try to do it yourself (it is far to important and messing it up can't be undone) and hire a professional.

Did you know paying off old collections and charge offs lowers your credit score? Disputing items on-line doesn't work? See http://www.cbsnews.com/news/the-one-thing-to-know-about-your-credit-report/. How important is your credit too you? Hire a professional! This is probably one of the most important decisions you will make or fail to make this year. It will determine the level of purchasing power you will be able to command in the future. While I do agree the credit repair industry is riddled with shady companies, there are many who do a great job. That would be where your time should be spent finding a company who can/will do the job for you.

Steve, Why the hostility? Sorry, it was Sergio who said years. You said it will take some time. The thousands of folks I have helped and the federal government, attorney general etc... would disagree with you assessment of no 'credit repair'. Also you can drill your own tooth but most folks go to a professional (dentist) since their teeth are very important. Our credit reports are only important once we need them to obtain loans but it determines where we live, what type of car, who we work for etc... Finally, how would you explain CROA 

Credit Repair Organizations Act | Federal Trade Commission if there is no such thing as credit repair?

Josh, I am not pitching you or anyone. My initial and this response is based in education. Your legitimate concern was pay per delete and the results of paying off collections and charge offs. It is a mute point for now based upon your pre-approval. If your pre-approval turns out to be a denial later on because you have collections and charge offs then you would be best off to turn to a credit repair company. I hope I am wrong and they your loan officer doesn't say "we can't have over 2K of non-medical collections on your credit report". My advice would be to ask your loan officer now what the tollerance of collections and charge offs is; based upon the type of program you are approved for (FHA, Fannie, Freddie etc.). Once you pay for your appraisal you will not be able to re-coup that investment.