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!

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