So what’s the deal with credit repair and is it a real benefit to the consumer? The reputation of credit repair has always been one of question and concern. As a matter of fact, some people even wonder if it really even exists. Well, let’s dig into this subject and expose some problems with this industry.
For those of you who know me or have heard me speak, you know that I do not like the term “Credit Repair”. I despise how credit repair services market themselves and “sales pitch” their businesses. Most companies sell credit repair services as “Get Better Credit in 90 days” or “Repair Your Credit for as Little as $79 a Month” or “One flat fee for all people and all situations”. The issue with this type of marketing is that it lacks the true meaning of being an expert and working with clients on specific issues. I have seen thousands of credit reports and never reviewed two that were identical.
The first step in any process is to find out the reason for the issue. The second is the ability to see if the client understands how they got into their situation and what it will take to correct it. An expert has to help the client understand the situation, even if that means a “hard conversation” must take place.
Clients must have confidence! Without confidence, it is hard for people to solve the problem and recover—that is one issue with our overall economy.
The final process is to implement the solutions and change course or behaviors to support the correction. Here is the hard truth, not all people are good with money and will have good (great) credit. If people have unsuccessful money/credit habits, then the results will be unsuccessful. If they have successful habits, meaning being aware and conscious of there finances, chances are they will have great credit and money behaviors.
In today’s world and economy we meet with people who have massive life changes. They have experienced financial and career setbacks. I have met with people who were millionaires in 2007 and now are broke and paycheck to paycheck today. This is a client who has experienced an event in their life that they did not predict.
I also meet with people who have great incomes, but are challenged with the fundamentals of handling money and credit. They have indulged themselves into the “hyper consumerism” mentality that we Americans sensationalize. They are behaviorally challenged and need coaching to change habits and build positive money behaviors in their lives.
The two clients I just described are totally different….the wisdom is to know the difference. The process and solutions are very different as well. Our specialty is to help people maneuver through credit issues with individual coaching or services. Like a personal fitness trainer, we partner with our client and work together toward a goal. The guidelines are set up front and expectations are put in writing.
I know someone can have their car repaired; I am not sold on the idea that credit can be repaired. It is imperative to have a strategic plan and specific information to achieve a goal.
Never has there been a time where people have more questions about their credit and how it is affecting them as right now…we are here to assist!