We have all seen the advertisements – You know the ones that promise “Instant Credit Repair Overnight…Guaranteed!” or “Fix Your Credit Before The Sun Sets”

   Many of these same advertisers want you to purchase their books, dispute letters, or gimmicky software programs, but in the end they are just like the supermarket tabloids and instant diet plans; they provide a pinch of truth with a dollop of wishful thinking. Can credit repair be instant and guaranteed?

   The simple answer is no.

   There are no instant fixes when it comes to fixing credit. Even if you were to pay off all of your current debts today, it could take at least a month for that action to be reflected on your credit reports. Yes, there are some things you can do to increase your scores quickly, the problem is the credit bureaus. They do not move fast when it comes to updating your credit report.

   Rapid re-scoring can help if you are in the middle of a real estate transaction, but even then, the fastest I have ever seen a credit bureau update their records is 5-10 days.

   There are some techniques I have used in the past with the VIP departments at the various bureaus to get scores updated rapidly when a unique situation presented itself. However, I wouldn’t recommend taking advantage of those relationships too often.

   A little insight into the credit reporting process will help you understand why 24-hour credit repair is not possible. Your credit report is compiled by three, independent companies (Equifax, TransUnion, and Experian). These credit bureaus write up your report based on information they receive about you from companies that gave you credit in the past. This includes your payment history, the length of your credit history, the types of credit you have, and the amounts you still owe.

   This all takes time. Assuming that you can, indeed, pay off the balance on all your credit cards today, it takes time for that action to be acknowledged by the credit card companies. For the sake of argument, let’s even say that you paid them with an electronic funds transfer, so they do not have to wait for your checks to clear. It will still take time for them to report this good news to the three credit bureaus.

   But do you notice that when you make a purchase with a credit card or debit card, the system automatically scans your available balance and will either approve or reject the transaction in real time. Hmmmmm, it seems as though every other retailer or merchant can fund a transaction in real time, but the credit card companies and credit bureaus need to “wait” for those funds to clear???!!!

   The credit bureaus then take time to incorporate the new data from your lenders, and compile a new credit report that reflects your current no-debt situation. But, and this is a big but, your credit rating is not just based on your financial situation as of today. Credit bureaus tend to weigh the financial events of the last 12 or 18 months when they generate your credit rating. The exact length they consider when scoring you depends on your specific history.

   But still, you have to wait for many months, or maybe even a year or more, before your bad credit reports have passed into credit-bureau history. So, it is virtually impossible for your credit score to rise within a day after you have bought a book offering a miracle 24-hour cure. How long do you have to wait until you can see some significant improvement in your credit score? Experts say that 3 to 12 months is reasonable amount of time.

 

   But who wants to be reasonable??? Three to twelve weeks sound more like the results my students and clients have achieved!

   There are proven techniques that you can apply to your credit problems that will help speed the healing. But there is no miracle cure. Some diligent work on your part, and some good communication with your lenders, move the process along. And just for the record, let’s be clear: Paying off the balance on all your credit cards at once is NOT a good technique.

   The credit bureaus will rate you more highly if you actually carry a reasonable amount of debt. That is how the credit card companies make money…you must learn to play the scoring game or else they will penalize you for not “working the system” and giving them a chance to make some money.

 

Talk soon,

Mark Garcia

 

P.S. If you haven’t downloaded your copy of my online eBook “Crushing The Credit Bureaus”, then you need to do that immediately. You can download it to your computer and be reading it within a few minutes.

It’s here: www.CrushingTheCreditBureaus/eBook