Credit's Costs

On a fairly regular basis, you can fire up the computer and go to your favorite news site or flip on the television to seek out your favorite news channel, and you’ll come across a story about how the economy continues to improve – and, overall, that’s fairly true.  However, that doesn’t mean that everything is dandy.  As individuals, we have our challenges, and sometimes we need help. 

On those same news sites or channels, you frequently see ads for credit-repair companies or from a credit card company offering to give you your credit score for free without it affecting your score.  Before I go any further, I want to make it abundantly clear that I am NOT speaking ill of any of these companies – I’m simply going to try and give you something to think about.  Are we good?  I’ll press on. 

Credit-repair companies make their money by selling a service to folks who are looking to raise their credit score.  I’ll pause here for anyone to say, “Duh!”  Here’s my point: these companies ask for payment up front, which is a good business model.  Upon payment, these companies then work with the customers by giving them counsel on what needs to be addressed on their credit reports, what changes the customers should make to their spending habits, etc.  All good stuff – no argument here.  However, these credit-repair companies don’t give out guarantees, and it’s a good business model not to do so because there are many things they can’t control.  The biggest thing they can’t control is how attentive the customer is (or isn’t) to the advice the company is giving them.  Whether the client heeds or doesn’t heed the advice, the credit-repair company has already been paid.  In other words, because they’re paid up front, success or failure is sort of a moot point – they move on to the next potential client.

The credit card company offering to give you your score for free isn’t evil or nefarious – they simply want your personal information so they can market their services to you (and possibly sell your personal information to other marketing information clearing houses – there’s A LOT of money in that).  You aren’t going to get bamboozled and taken to the cleaners by someone posing as a Nigerian prince if you call this credit card company and ask for your score for free, but I’ll guarantee that you’ll start getting an increased number of emails and phone calls from them and companies to whom they’ve sold your information.

In the real estate world, the only company you should visit if you need help with credit repair is us.  Sure, other mortgage companies offer credit counseling, but most either refer it out to a service (that might hit you up for a fee) or shuffle you off to someone else in their company who may or may not care if you follow their advice – they get paid hourly or a salary.  There are two reasons Priority Lending should be your only source of help with your credit issues: (1) You’ll work ONLY with your loan originator – he’s been trained to read and understand a credit report to help you repair and improve your score as quickly as possible; (2) we don’t get paid UNLESS WE’RE SUCCESSFUL in helping you – in other words, our incentive is to stay engaged as long as you are, and by doing that you GET A HOUSE (and we get to write the mortgage).  It may take three months or 24 months to get you to that point – we’ll be there as long as it takes.  We’re a patient lot.  And by doing it with us, there are no up-front charges for counseling or subsequent annoying phone calls that come in JUST as you’ve sat down to dinner. 

So, give us a call and eat your nachos in peace!