Credit Restoration and Debt Management

5 Credit Myths That Lead to Disaster

2011-02-07T21:32:00.000-08:00

The media and the credit reporting companies have done an excellent job promoting the notion of having a good credit score, almost too good a job because people seem to think that their credit score is the most important aspect of their financial life. Getting out of debt is secondary. Saving for retirement is secondary. It is almost as if when you have that perfect credit score of 720 or higher, then your life will suddenly become perfect. The advertising is working because even though everyone in the U.S. can order their credit report for free, every year millions of people are going to services that cost them $36 a year to get their "free" report.

• Questions to Ask a Credit Counselor

• How to Get Rid of Credit Card Debt

• Where the Low Credit Card Rates Are Hiding

People are obsessed with getting and keeping an excellent credit score. We hear these statements regularly on our financial helpline:

A caller who can't pay their monthly bills because their debt payments are so high says, "I can't go to credit counseling because I heard it will damage my credit score."

A caller who is not saving in their 401(k) and missing out on the company match says, "I don't want to pay off my credit cards. I am keeping a balance to help my credit score."

This makes no financial sense. People aren't going to seek help getting out of debt —lowering the interest rate and possibly the balance owed — because it will hurt their credit score? How is this helpful? If people don't get their debt under control, they may never retire. We'll have a nation of people working into their 80's with no savings but they can all come together and brag about their credit scores.

Don't even get me started with the notion that carrying a balance on a credit card will somehow help the score. First of all it is wrong and secondly, people are actually harming themselves financially — thinking that paying high interest on credit cards instead of paying them off is a good financial strategy.

Don't get me wrong, having a good credit score has value; it can save on the cost of borrowing money so it is helpful to have the best score possible. Just make sure you are basing your credit strategy on sound information — not common myths that get you nowhere.

Let's examine some of the biggest credit myths that can lead to disaster:

Assuming if you pay your bills on time, you don't have to do anything else.

Paying your bills on time accounts for about 35% of your credit score but there is another 65% which includes amount owed (30%), length of credit history (15%), new credit (10%) and type of credit (10%). Consider all of the other factors.

Also remember that there may be errors on your credit report so if you don't check it, you'll never know and your score will be affected. According to Deborah McNaughton, author of The Get Out of Debt Kit, 80% of credit reports have errors (as cited by Bankrate.com). Many of the erroneous reports had missing information that may boost a score, such as missing a revolving account in good standing, or miscellaneous incorrect information such as an incorrect birthday.

Check your credit report. You can receive a free report from each of the three credit reporting agencies once a year at www.annualcreditreport.com. Credit reports are unique to Social Security numbers, so if you are married, you may want to stagger your requests with your spouse every six months. You can also request your actual score for a onetime fee (which is less than $15 through most credit bureaus). Most credit monitoring services will provide your score for free when you sign up for their service.

Assuming when you divorce, your accounts automatically divorce with you.

They don't. If you have a joint account and one of the parties on the account is late, you are both late. With some types of loans, such as a mortgage or a car loan, the lender may not accept a letter asking you to be removed from the account after a divorce even if that property is going to your ex-spouse. They will need to qualify for the loan on their own before you will be removed from the account. Take this into consideration because if they don't refinance, and then have late payments, you may find yourself with some credit issues. When possible, close all joint accounts and refinance any debt separately. If it is not possible, maintain some type of control, whether it is an escrow account or at least access to information to make sure the accounts are paid in a timely manner. Don't assume. Also see the last point about closing accounts.

Avoiding consumer credit counseling because it will hurt your credit score.

For someone with serious debt, working with a not-for-profit credit counseling agency to develop a debt reduction plan and get out of debt permanently should take priority over credit scores. Credit counselors will work with your creditors to try and reduce your monthly payments, or settle your debt altogether. Debt settlement doesn't affect scores as badly as you would think. In fact, many people don't realize that late payments affect scores more than a debt settlement. Here is an example of how a debt settlement can affect credit scores, and how that compares to late payments.

A late payment hurts your score more than a debt settlement if your score is in the 680 range; it only significantly pulls it down if you are in the 780 range. Let's be honest here, people ready for credit counseling probably don't have the highest scores anyways, and the bottom line is credit scores are fluid — they can be rebuilt. According to Credit.com, a debt write off can stay on your credit report from seven to ten years, but as the information ages, so does its negative impact.

Making late payments aren't that big a deal.

According to FICO, a 30-day late payment can affect your score by as much as 110 points. Late payments can have a huge impact on your credit score causing it to drop like a stone. This is one disaster that is relatively easy to avoid. Simply set up all of your accounts with an automated minimum payment schedule from your checking account. This way you'll never miss a payment. You can always pay additional amounts through online banking. Set yourself up for success with this one because it can be an easy one to miss and makes a significant impact.

Closing accounts to clean up your credit.

Closing an account may be a good idea if you only opened the account to get a discount on merchandise or have too many credit cards which is causing confusion, but it won't clean up your credit or help your score. In fact, it can hurt your score when the account you close has a long credit history — especially a good one. Your credit history accounts for 15% of your score, so in making decisions which cards to keep and which ones to close, keep in mind how long you've had the account open and close the most recent ones first.

Are credit scores important?

Yes, but they are not the "be all and end all." Now that we've dispelled some of the biggest myths, consider what the "be all and end all" is for you. What are your biggest financial challenges and concerns? Our latest research shows that less than 18% of employees feel they are on track for retirement. Are you part of the 82% that isn't? Do you have a personal net worth statement and is it going in the right direction? The point is when you focus on the important financial issues, you have a chance to meet your financial goals. Clean up your credit if you have to, and do your best to keep a good credit score, but let's not go overboard and lose sight of everything for just one number.

For a free consultation go to: www.dynamiccreditsolutions.com

Or Call: 888.299.9978

New Twist: Your Credit Score Is a 'Ranking,' Not a 'Rating'

2011-01-25T02:02:00.000-08:00

New Twist: Your Credit Score Is a 'Ranking,' Not a 'Rating'
by Diane Tuman
Monday, January 24, 2011

If you're a responsible consumer and pay your bills on time, you don't run up exorbitant credit card debt, and you have a healthy credit mix, you probably assume your fabulous credit score of say, 760, is solid and safe. That is, until you go to apply for a home loan, or car loan and see that your credit score is actually more like 720 now. Or, maybe your credit score hasn't changed, but you are now denied a loan that you were able to get a year ago with that same, fabulous score.

So, what happened?

Yuliya Demyanyk, a senior research economist with the Federal Reserve Bank of Cleveland, provides this fascinating finding about credit scores:

Your credit score is not a rating of your credit worthiness, but rather a ranking of your credit worthiness compared to the rest of the U.S. population at a specific point in time.

In other words, when your credit score changes — even if your credit behavior doesn't change — it's because your rank order compared to the rest of the population has shifted. For example, if the rest of your fellow Americans are paying more of their bills faster than you, this will affect your rank and your score. Conversely, if your fellow Americans slip in their payments, your credit score and rank will rise. So, even if you do everything right, you are thrown into the mix with the rest of the population and your score/ranking is affected by what everyone else is doing.

Hidden Data Point — Credit Risk vs. Credit Worthiness

An additional component of your credit score is your credit worthiness. This is a data point that predicts the likeliness that you will pay your bills on time or fall behind in payments. You won't see this number since it's part of a credit-reporting bureau's secret, credit-scoring model, but this is important to lenders who make the assessment of whether to loan you the money. Like it or not, it is an indication of your level of risk to a lender: "What kind of track record does this person have in paying loans on time?"

Another thing to understand is that the relationship between credit score and credit risk is dynamic and changes over time. So the risk associated with a 700 score last year is not the same as the risk with a credit score of 700 this year. And it's risk that the lender fundamentally cares about, not the score.

Also, even though your credit score and credit worthiness might be stable, conditions beyond your control — market conditions, a bad recession — could affect everyone's credit worthiness, not just yours. This is certainly true today in our financial crisis that has affected major aspects of our economy — namely, jobs and housing. So, that fabulous credit score that got you loans in the past may have changed as the "bar" for a good score shifts upwards and out of reach as lenders pull in and loan less.

How Your Credit Score Is Calculated:

For the most part, credit scores are generated from one of three major credit bureaus – Equifax, Experian and TransUnion. Each of these bureaus collects credit information on you and then applies a statistical algorithm to calculate your credit score (the Fair Isaac Corporation was the first to create such a score which is why credit scores are still oftentimes referred to as FICO scores). Each of the bureau's scores will vary slightly because they each have their own proprietary methods to track customer credit behavior and use different methods for collecting data on you. Recently, the three bureaus have gotten together and created a common score call the VantageScore, which is common across the three bureaus.

Factors That Affect Your Credit Score:

35% — Payment history

Lenders look at your payment history on all your accounts; the length of your positive credit history and how long you have gone without a negative item; whether there are any severe unpaid debts like bankruptcies or foreclosures; and the number and severity of delinquencies in your credit history.

30% — Amounts Owed

Too many credit accounts and a high ratio of credit balances to credit limits can affect your score. Also affecting your score is the amount of debt on each account and the level of debt paid off on term accounts.

15% — Length of Credit History

Longer credit histories result in higher scores. Important factors incorporated into credit scores are: length of credit history, length of time specific accounts have been open, and the duration of time since each account was last used.

10% — New Credit

Credit scores track consumers who suddenly take on new debt and potentially overextend themselves, by checking to see when the last time a consumer opened an account and how many accounts were opened and by looking at the number of inquires on the consumer's credit reports.

10% — Types of Credit Used

The type of credit you have plays an important role in determining your credit score. A "healthy mix" of installment loans (mortgage payment, auto loan) and revolving credit from banks is considered better for your score.

What's a good credit score?

Scores may range from around 300 to 900 with the average credit score in America being around 720. Here is an approximate range of how credit scores are judged:

Excellent credit = 720 and above

Good credit = 660 to 719

Fair credit = 620 to 659

Poor/bad credit = 619 and below

For anecdotal evidence of your good credit standing, if you notice you are receiving a lot of zero percent credit card or lines of credit offers, you are probably in pretty good shape.

Summary

In conclusion, having a high credit score is still very important in getting the best mortgage rate, and you should be guided by the factors that make up your credit score. But, since you are ranked against the rest of the population and financial conditions also impact credit worthiness, improving your credit score is not always within your control.

For a free consultation go to: www.dynamiccreditsolutions.com

Or Call: 888.299.9978

How Your Credit Score Can Hurt You

2011-01-03T17:05:00.000-08:00

How Your Credit Score Can Hurt You
by Toddi Gutner
Monday, January 3, 2011

While it helps to know the actual number that represents your creditworthiness or the likelihood that you'll repay your debts, people often find out what comprises and affects their credit score long after they should. Your credit score is the determining factor that banks use to set your mortgage rates, car loans and credit card terms. For that reason along with making sure your credit report is accurate comprises the two main reasons to keep tabs on your credit score.

A number of years ago, I was stunned to discover that when I opened up a new credit card account, my fairly high credit score dropped.

Indeed, "opening a new credit card account with a $2,500 limit can knock your score by as much as 52 points and increasing a credit card balance by $2,000 can lower your score by as much as 68 points," says Carrie Coghil, director of consumer education for FreeScore.com, a credit monitoring agency. To avoid being stuck in that scenario, consumers should arm themselves with a few facts.

Get your credit report. Since 2005, the federal Fair Credit Reporting Act requires that U.S. consumers be entitled to one free credit report every 12 months from each of the nationwide consumer report reporting agencies -- TransUnion, Experian and Equifax -- only through www.annualcreditreport.com (1-877-322-8228). You can request all three at the same time or one every four months to monitor any changes throughout the year.

Understand the number. When credit agencies calculate your credit score they are adding and subtracting points based on a number of factors -- each weighted differently. Your payment history contributes 35 percent of your score, the amount you owe is 30 percent, your credit history contributes 15 percent and 10 percent is attributed to newly opened credit. Finally, another 10 percent goes to the types of credit you carry.

Not only is important to know how the number is calculated, it helps to know the different thresholds that direct financial institution decisions. "A few years ago, it used to be that 700 was really the barrier for getting approved for the best rates and products," says Todd Mark, vice president of education for Consumer Credit Counseling Service of Greater Dallas. "A goal line now is 760 to ensure getting approved for the best rates and products with the floor at 600 to 620, that is up from 500 five years ago," says Mark.

Learn what affects your credit score. Aside from the well-known criteria that comprises your credit score, there are a host of other factors that can affect it. Take the soft and hard inquiries, for example. A soft inquiry is one that doesn't affect your credit score, such as an individual who checks his own score or an employer who does a background check. Hard inquiries, like opening a new credit card account, a new cellphone contract or car loan, all alter your credit score, says Coghil. "A lot of hard inquiries in a short period of time can make people wonder about your financial wherewithal," she says.

It is also important to note that negative factors, such as late payments, stay on your report seven years except for bankruptcy which stays on your report for 10 years, says Mark. If you have unused credit cards, it is best to close them, says Maxine Sweet, vice president of public education for Experian. For accounts you use, try to spread out the use of credit among them all.

Lenders don't want to see consumers maxing out on their credit cards. Try to keep your credit card utilization below 10 percent per credit card. Finally, even if you're fairly certain you have a good credit score, check it at least once a year. "The last study I saw said that 80 percent credit scores have misinformation," says Mark.

Pay $1 For Your Credit Card Statement

2010-01-28T00:13:00.000-08:00

Pay $1 For Your Credit Card Statement

Private-label credit cards for stores such as Ann Taylor and Victoria's Secret are now implementing a $1 fee if you want your credit card statement mailed to your home as of February 22nd. In order to avoid the fee, lenders want card holders to opt in for online credit card statements.

Lenders claim the new Credit CARD Act of 2009 require a number of new disclosures be included in each card statement and the extra paper is going to cost them. Watch dog groups warn that lenders will keep trying to come up with new and exciting ways to add additional fees to your bill in order to recoup some of the money the new act is causing them to lose.

The purpose of the Credit CARD Act of 2009 is to make lending practices more transparent. Retroactive interest rate hikes and other hidden fees are a thing of the past. Lenders are expected to lose as much as $50 Billion in revenue due to the loss of their old bill padding strategies.

Offline Credit Card Statement Fees Will Hurt The Elderly The Most

Since the fees apply only if you want a physical statement in the mail its expected that the elderly who have not fully embraced all our current technology will be hit the hardest.

What Is Considered A Good Credit Score?

2009-04-29T17:36:00.000-07:00

Your credit score plays a very important part in your finances. Today, more than ever before, your three digit credit score can determine how much you pay in financing charges for virtually everything, from a car, to a home or refinance, or credit cards. Your credit score can even affect your insurance rates and whether you are hired for a job. Each of the three credit bureaus, Experian, Equifax, and TransUnion, produces their own version of your credit score. They will vary somewhat as each bureau uses a slightly different formula when calculating your credit score.

What's a Good Credit Score?

Credit scores from all three credit bureaus generally range between 450 and 850. The higher your credit score, the better chance you have of saving money. Typically, a credit score in the 700+ range will help you qualify for lower, preferred interest rates. Credit scores of 650 and below will make it harder for you to qualify for the lowest interest rates available. But don't get discouraged, your credit score can always be improved, and it can happen much faster than you think with positive credit habits.

Today, your credit score is used by more and more companies who rely on your credit score to successfully manage risk. Credit scores are a two-edged sword for consumers. A good credit score can save you money, A higher credit score can put you at a major financial disadvantage over the course of your life. It's important for you to maintain good credit habits: Pay your bills on time, don't carry too much debt, pay down the debts you have, and maintain a good, healthy mix of credit accounts: real estate, installment credit, credit cards, and retail/department store cards. Be smart. Use credit wisely.

www.dynamiccreditsolutions.com

888.299.9978

Top Ten Reasons Why Mortgage Brokers Don't Use Credit Repair

2008-09-13T15:31:00.000-07:00

On the surface, using these services seem to make so much sense you would assume everyone in the mortgage originating industry would be using these services. However, this is simply not the case! So the question is, why not?

First let's outline the top 10 reasons loan officers give for not using these services and then let's examine them in greater detail.
•1) Credit repair doesn't work!
•2) Credit repair makes a clients credit worse.
•3) When negative items are removed they come right back on.
•4) Removing old negative items does not improve score that much.
•5) I repair client's credit myself.
•6) It costs too much, my clients can't afford it.
•7) Almost everyone I work with has great credit.
•8) I don't trust people in the credit repair industry.
•9) The process takes too long and is a waste of time.
•10) Unless I can do the loan this month, I really don't care.

Credit repair doesn't work.

OK, so here is the bottom line, it does work! When you go on the internet and do a search on credit repair you will see links to a number of websites providing information on credit repair. If you have gone to these websites you know there are a couple of things repeated over and over again. The first is that accurate information cannot be removed from your credit report. Moreover, do not let anyone tell you that it can be. Secondly, there is nothing a credit repair company can do for you that you cannot do for yourself.

What you may not know is that these web sites are created or financed by the credit bureaus. So why are they spending money on these websites? The credit bureaus make money each time credit information is pulled. People with low scores or damaged credit have their credit pulled dramatically more often than those with good credit. Credit bureaus are fundamentally opposed to credit repair companies for one simple reason, it costs them money!

Dynamic Credit Solutions has years of experience in the credit repair industry. The credit bureaus hate us and our clients love us. We do not dispute that the client has these trade lines; we simply take the creditors and credit bureaus to produce the information that they must have to verify the debt. More specifically, they must prove that everything is exactly accurate. If they do not have the documentation or something is being reported incorrectly, by law they must remove it!

Knowing the specifics of the ever-changing laws is crucial. Now if the consumer knows the ins and outs of the laws as well as and has years of experience doing this work day in and day out they could possibly get the same results. They can also represent themselves in a court of law, do their own taxes, and sell their own homes. But they hire attorneys, accountants, and realtors everyday to get the job done most effectively and as fast as possible.

Credit repair can make a clients credit worse.

This is a common misconception. People often mistake credit repair for consumer credit counseling service. Nothing can be further from the reality. Consumer credit counseling almost always destroys a consumer's credit and credit score and should not be mistaken as credit repair done by a reputable credit repair company. Also, many of the consumer counseling services operate as "non-profit" entities and are subsidized by large credit companies (for example: credit card companies, banking and finance companies.)

When a credit counseling agency sets up a 12-36 month payment arrangement between a consumer and a creditor they are actually setting up 12-36 months of late payment history for the consumer. Even if the client makes the payments arranged by the consumer credit counseling service on time, those payments are reported to the credit bureaus as late payments. Dynamic Credit Solutions primary focus is credit score improvement. This is done by removing negative items on the client's credit report as well as educating the client on how to use credit to positively affect the credit score. The value of our advice can last a lifetime.

When negative items are removed they come right back on.

After we have removed negative items from a credit report it is always possible that the original creditor can re-report the negative item. However, this is rarely the case. Given that the original creditor generally will only hold the debt for 4-6 months, they do not waste time or the money to check on these items and re-report them. What typically happens is that the debt is sold or transferred to a collection agency which will re-report them in an effort to pressure the client to pay the debt. When this occurs we can go back and dispute the items under the same dispute that removed them in the first place. For this reason the term of our credit score improvement service membership with our client is one year.

Removing old negative items does not improve score that much.

This is another common misconception that is totally untrue. While it is true that negative information is weighted meaning the older it is the less negative impact it will have on the credit score. Common sense should tell us, the very fact that this information remains on the credit report for 7-10 years means it is affecting the score in a negative way until it is removed from the credit report. Although many credit repair companies focus only on the dispute process of a consumer's past derogatory trade lines, Dynamic Credit Solutions adds a comprehensive educational program to be prepared for the future. Additionally, if a client does not have any or few positive trade lines in their credit files, we can advise them on the best and quickest methods of accomplishing this.

I repair my client's credit myself.

Consider this, as a loan officer you are paid to originate loans. The more loan volume you write the more money you make. A simple business concept called leverage dictates that the way to make the most money is to spend your time doing the things that generate the most income for your business. For you that means meeting with clients and taking applications. Show me a loan officer who processes their own loans and I'll show you a loan officer who does very few loans. Focus on the things that pay you the most money for the time you spend doing them and delegate the other tasks to people who are proficient at those things. How many times have you spent hours trying to repair someone's credit only to be unsuccessful or to have them go somewhere else to get the loan?

Allow Dynamic Credit Solutions to be your, "Ace in the Hole" for all of your short term and long term credit score improvement needs.

It costs too much, my clients cannot afford it.

Given the tremendous impact credit score has on a person's overall financial life, the question really should be, how can your client afford not to contract with Dynamic Credit Solutions? Credit affects your client's mortgage payments, car payments, credit card payments, as well as auto and homeowners insurance, and the list goes on. If we improve your clients score 50-100 points how much can you lower their monthly mortgage payment?

Generally speaking, however much you are able to lower the mortgage payments we can assist the client in lowering the cost of their monthly obligations by an equal amount. So, if you lower the mortgage payments by $250 per month we can probably lower the other bills by $250 a month for a total of $500 a month. This is $6000 every year because of credit!

Almost everyone I work with has great credit.

A few years ago I would have looked upon this as a legitimate objection; today this statement is simply disingenuous. The reality is, if you have been in the mortgage business for 10 years or more you are seeing more bad credit reports than you probably ever have. With the coming changes in the bankruptcy laws this trend will only increase. Currently almost 75% of people in the market for loans are candidates for sub-prime mortgage products.

Dynamic Credit Solutions can fix these broken people for you while you are doing other more productive things. When they are fixed you will be the first to know (even before the client) by our notification systems. You now have a client who thinks you walk on water as well as have another transaction that otherwise may have been a "no deal."

I don't trust people in the credit repair industry.

Every industry has people who do not operate in the most professional manner. We at Dynamic Credit Solutions look upon this as a tremendous opportunity to distinguish ourselves. In addition, a lot of the negative stigma in the credit industry about credit repair companies is hyped up by none other than the credit bureaus themselves. Think about it for a minute, if a consumer dispute by a consumer or a credit repair company is going to add overhead to the credit bureaus operations and if the dispute process is successful, then the consumer will not be applying for credit as often because they do not need it as much, with this reducing the credit reports sold by the credit bureaus, is it any wonder that the credit bureaus would create bad press about credit repair companies. Dynamic Credit Solutions clearly understands and abides by the regulatory requirements for our industry, both federal and state. Our goal is to enhance your credibility with your clients as opposed to undermining it. Give us a try; see if we are not the most professional credit score improvement company you have ever worked with.

The process takes too long and is a waste of time.

There are many credit repair companies who only work on 1-3 negative trade lines at a time, one bureau at a time, until they are removed. If the client has 20-40 negative trade lines which is not uncommon, this could take 2-3 years. Given this, we understand why you might feel the process takes too long. At Dynamic Credit Solutions we pride ourselves on speed. Like a championship football defense in the blitz mode, we attack every negative trade line at the same time to get the greatest impact in the shortest period of time.

Unless I can write the loan this month, I really don't care.

Generally, people who make this statement will not be in the business very long. That being said, we do understand why loan officers feel this way. The constant pressure to produce can be unbearable. So let us address this question with honesty. The reality is, in certain situations we may be able to bring the score up in 30-45 days to get a loan done. Bear in mind if it can be done we are uniquely qualified to get it done. The goal of service is to increase the scores 50-100 points in 90-120 days. This may allow you to do a band-aid loan today and guarantee a second transaction in the future. In addition, the long term loyalty this can create between you and your client will keep them coming back for life and referring you to all their friends, family, co-workers, etc ...

This is why when you understand Dynamic Credit Solutions you don't send us people because you have nothing better to do with them, rather you send your clients to Dynamic Credit Solutions because you care enough about them to do so.

The final note is you can write 1-5 additional loans every month by working with Dynamic Credit Solutions! What are you waiting for?

www.DynamicCreditSolutions.com

The Truth About Credit Repair.......What Can And Can't Be Done!

2008-08-25T14:43:00.000-07:00

Now contrary to what the credit bureaus would like you to believe, Credit repair does work and can work for 100% of people in most circumstances. This is, of course, provided you are getting the best advice and have a trustworthy professional working on your case.

The reason credit repair has received such a bad name is due to the abundance of scam artists who flock to the easy money made available by people desperate for this type of service. This unfortunate reality leads the credit bureaus and the FTC to make blanket, untrue statements such as, "Credit repair does not work ever and there is nothing a credit repair company can do for you that you can't do for yourself."

Given that more than 90% of credit repair companies are con artists, promising the world and then disappearing when you pay, the credit bureaus and the FTC are forced to make such bold statements.

It would be impossible for them to explain the truth to consumers without causing them to make a bad choice that would result in getting conned. As a result, the credit bureaus and the FTC must adhere to the "credit repair doesn't work" position.

But there is a caveat.

Even if you have a true master of credit repair on your side you have to take into account that sometimes the other players perform in a way that throws the master of credit repair off his game.

Take Shaquille O'Neal. Although he has the ability to win every game for his team there are going to be times when the other team has a formation that takes him off his game and causes his results to be less than optimal. Given that fact, you still cannot predict to any level of certainty whether or not he will perform well or poorly the next time he faces that team.

Credit repair is similar. Sometimes the opposing side shows up strong, other times they don't. Even if you follow the same approach with every situation that arises when doing credit repair, your results will still vary due to the other players involved. Unfortunately it's the inconsistency of the industry, not the inconsistency of skill level.

So here are 2 situations where it is almost impossible for credit repair to help someone needing results within 6 months to a year.

1. If more than 50% of the negative accounts showing on a credit report appear as unpaid collections, charge-offs, repossessions, or foreclosures and you do not have the money to either pay the accounts in full or settle them, then there is not much that can be done in a 3-6 month time frame if you need more than a 30 point increase.

Due to the negative accounts remaining unpaid, these items will simply reappear on your report once removed. In many circumstances even unpaid accounts can be removed-but, unless the negative account is current, paid or settled, it will simply reappear in 10-90 days! Talk about wasted time and effort!

The only way to prevent this is to bring the account current by paying the past due amount, or, in the case of a collection, charge-off, repossession, or foreclosure, pay the balance in full or settle it for pennies on the dollar.

Unpaid accounts that do not have collection, charge-off, repossession or foreclosure status require only that the past due balance be paid to be considered current. Unless the negative account is a public record, the only way to keep them from being re-reported is to make sure the status is "current, paid, settled, transferred, or sold." That's the ONLY way.

In other words, if deleted, any negative account that does not show one of those five statuses will most likely get re-reported, unless the account is a public record.

2. Credit repair is nearly impossible if you can't pay your minimum monthly payments and you keep adding new late payments to your report. This is a "spinning your wheels" scenario that rarely yields much improvement to your credit score.

If you are currently in 1 of these 2 situations you must first realize that you are looking at more of a 6-12 month credit restoration process. Second you will need the help of a professional credit restoration specialist like me that will show you what you need to do!

www.DynamicCreditSolutions.com