One of my 2008 resolutions was to start saving more money. I sat for awhile over the Christmas Holiday thinking about the best ways to do that. I realized that my largest expenses were my mortgage and my car, both of which have loans on them. I thought, if I could find a way to get my interest lowered, I could save a ton of money. In order to do this though, I need to have some leverage with the bank, a bargaining chip. Since there really is no reason for them to lower it, I thought what about if I improve my credit score. This means that I am less of a risk to the lender. This would in fact, give me the leverage I need.

I started by getting a current copy of my credit profile and FICO scores. I was surprised to find that my scores were not as high as I had hoped. I thought: "How do I turn this negative into a money saving positive?" I started reading everything I could find on credit repair, scores, how they work, how they are calculated, etc. I found a common caveat amoung the experts. It was, if you are going to use a service to help "repair" or "fix" your credit, make sure they are actually able to do so. Check with Better Business Bureaus and other consumer advocate groups before you commit to anything.

In doing my research, I found that many of the reputable companies use the words "Credit Restoration" rather than "repair" or "fix". Also, the reputable companies actually work with the government and follow the Fair Credit Reporting Act rules to keep the three credit reporting agencies in compliance with the law. A good company should give you regular reports of your progress and tell you exactly what they are doing for you. Not just take your money and say we will get back to you when its fixed or you will notice a difference in your score. After calling some of these places and asking how they do it, they basically told me it was a long process and I probably would not understand it. Obviously I did not go with them.

Interesting notes:

(1)The three major credit reporting agencies Equifax, TransUnion and Experian are PRIVATELY owned companies. Also, they make their money by selling credit information to just about anyone who pays for it. 

(2)An investigation published in a recent report by the U.S. Public Interest Research Group has shown that one in four credit reports contain errors, many of which result in consumers being denied credit cards, home loans, automobiles or an apartment.

1 in 4? Thats insane!!! I can only deduce that they make more money by having inaccurate or outdated information so whomever can jack up your interest rates.

(3)Did you know that many companies will deny you a promotion from your current position based on your credit scores? I always knew companies checked your credit when they hired you but not while you were there. (another possible way to make money by having a high credit score)

I decided I would not spend over $500 for one year to get my scores up to a level that would allow me to negotiate with my loans and I would save alot in interest and increase my buying power in the process. I know when you get these reports on your FICO scores each report usually costs around $50. You can get free reports and try to restore your credit just by corresponding with the credit reporting agencies. BUT!!! I did find that if you dispute an item and don't word it correctly you only have two tries and then you have to keep it for a certain period of time. Based on that, I decided not to chance it and let the experts do it for me.

I started my search for the perfect company to help with my problem. To my surprise, I found it right on my favorite store website (Cassmart). They now offer credit restoration services and auto loans for people with less than perfect credit. They do this through a company called VRTech Marketing and United Credit Education Services (which is a non-profit restoration service). The VRTech marketing part provides you with access to the service, your own personal website so you can monitor what they are doing and regular reports. Also, they have a great customer service department that will answer all your questions. (If you have read my other posts, you will see that I love Cassmart)

Here is the direct link to the service if you don't want to go through Cassmart.

It is worth your while to check this out. They have already sucessfully disputed three items for me and I have only had the service for two and a half weeks!!!

Bob