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Hiring a Credit Specialist for Our Credit Issues?

We had 2 collection accounts on our credit and after we paid them off at the advice of our bank, we found out that they are actually hurting our credit even more! Now they want us to pay a credit specialist a monthly fee to get the negative things removed. Can we get some advice? by DannyTroute798 from Arvada, Colorado. Feb 6th 2017 Reply


Larry Gray (lgray_312_247)
#565 ranked lender in California - 1,127 contributions

I am sorry you did not get advice from a mortgage broker experienced in working with people who have credit issues and helping them properly fix and improve their credit scores. Generally, I advise clients to make it clear that they are not admitting to the collection debt as theirs, but are willing to settle if receiving a delete letter. That is a letter that says the derogatory report should be deleted. They can do that no questions asked...with all three bureaus. Sometimes, they are not willing to do so even if you paid in full. But it is worth a try as some will. Get notification of them doing so before you pay! Now, in your situation perhaps you have paid off all the collection accounts you had and are stuck with the consequences of the derogatory report showing up for many more years on your report. However, the three major credit bureaus agreed in recent years to no longer reduce credit scores as a result of newly reported paid collections. The longer time from when the delinquent debt originated, you credit continues to go up. Opening up lines of credit even if just for $300 limit secured credit cards will help increase your scores. I tell people just to maybe charge $20 a month for gas and pay it off every month! Good luck! I would not pay any credit specialist anything. You can do your own best work to get your credit up.

Feb 6th 2017
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David Hosterman NMLS 220562 (dhosterman)
#15 ranked lender in Colorado - 26 contributions

Our company can go down to a 580 FICO. What was the score you had. We do a lot of loans in Arvada and I would be more than happy to help. Thanks!

Feb 7th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,000 contributions

Sadly, most banks are incompetent when it comes to giving credit advise.. Mortgage Loan Originators on the other hand are a very experienced source for credit advise.. Had you contact one, they most definitely would not have advised you to pay off an old collection.. Credit reports are driven by the most RECENT data.. if you have a 5 year old collection for $500 showing on your credit report, then that account has very little impact on your credit scores.. but you go and pay it off.. then you just converted a 5 year old unpaid collection, into a RECENT paid collection.. and this will most definitely lower your score.. The best advise I can give you would be to contact a local mortgage loan originator.. (Not the Bank).. and let them look at your profile first.. when it comes to credit restoration.. 90% of the companies out there are scams.. a good loan originator should have a good source for a competent credit restoration company.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 7th 2017
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