Bad Credit … Is It Really All Your Fault?
If you have bad credit, you’re not alone; in fact, not even close. But in today’s economy, where banks and lending institutions seem to be collapsing almost weekly, Fannie Mae and Freddie Mac stunned the world not long ago when they announced publicly that they held over 5 TRILLION DOLLARS worth of “sub-prime” mortgages. “Sub-prime” is Wall Street talk for bad credit borrowers.
And then, all of a sudden, after more than 30 years of secrecy and treating sub-prime borrowers like third-class citizens, Wall Street’s “dirty little secret” was out and the message was clear; it’s okay to belittle and financially exploit bad credit borrowers to ‘keep them in their place’, but the bottom line is that Wall Street depends on bad credit for it’s livelihood. Bad credit is big, BIG business; netting HUNDREDS OF BILLIONS OF DOLLARS IN PROFITS ANNUALLY.
That revelation has, in turn, focused a great deal of attention on the way lenders have intentionally targeted and preyed upon people with bad credit for decades. In fact, as more banks and financial institutions collapse, the more apparent it is becoming that a large portion of the financial sector appears to have actually been designed to create bad credit, so that it could then financially exploit people with bad credit.
Credit Repair Is The First, Best Place To Start Saving Money
It may come as a surprise to some, but during this time of nationwide belt-tightening and economic recovery, most intelligent people are eagerly looking at professional credit repair as the first, best and most obvious place to start saving money - BIG MONEY.
“Better credit translates directly into immediate, tangible, real-world cash savings of thousands, and sometimes tens of thousands, of dollars EACH year in terms of lower interest rates on mortgage loans, car loans, student loans, credit cards, leases, business loans, and all sorts of lines of credit, as well as significantly fewer fees and security deposits. It’s like free money; like having the paycheck from an extra job, only with none of the work, headaches, responsibility or hours.“
Bad credit, with it’s never-ending parade of extra fees, points, high interest rates and extra charges for anything and everything sucks HUNDREDS of BILLIONS of dollars out of credit-challenged consumer’s pockets each year. And while that might have been great for business, it’s been devastating for people. Once they get caught in the bad credit quagmire, they tend to stay trapped there for life, simply because they don’t know how to effectively, legally repair their credit or improve their credit scores. It’s not entirely their fault though, because until recently, most people simply didn’t know the deck was stacked against them.
“For decades, and without even knowing it, consumers have fought a losing battle to improve their credit scores with do-it-yourself credit repair. They need help. What they need is a whole new battleplan.”
The Disturbing Truth About Bad Credit
The 3 most unsettling things about bad credit that have come to light in recent months is that the financial “establishment” has clearly set itself up to:
- Create the bad credit “problem” to begin with
- Once established, perpetuate the “problem” and dissuade solutions
- Be the direct financial beneficiary of the bad credit “problem”
Unethical behavior? You bet!
Why would they do that? Money; same as always. Lots and lots of money.
Bad credit is very EXPENSIVE for consumers and very PROFITABLE for lenders, despite the fact that they treat credit-challenged borrowers like third-class citizens. In fact, it’s been estimated that institutional and private lenders extract between 4 to 19 TIMES more money from people with bad credit than they do from good credit borrowers. Not 4 to 19 percent more … 4 to 19 TIMES more.
How Profitable Is Bad Credit?
Consider for a moment how much money lenders can actually earn on those 24-month and 36-month 0% interest car loans they advertise on TV for people with good credit. Nothing, right? The only benefit is they move some inventory and make a profit on the car sale itself. Now consider how much money they make writing bad credit car loans at 13% to 25% - they DOUBLE their money in only 4 to 5 years! And it gets worse: Buy Here/Pay Here car lots routinely charge bad credit borrowers between 25% and 90% PER YEAR!
The Deck Is Stacked Against You … ON PURPOSE
The 3 major credit bureaus, Experian, Equifax and TransUnion, work together with almost all lenders, creditors, financial institutions, public records providers (federal, state and city governments) and collection agencies nationwide to make bad credit as easy to dispense as possible, as quickly and as often as possible and to as many people as possible with only a facade of oversight. This is no conspiracy theory - it’s a fact. A recent study found that 77% of credit reports contained errors. 77%!
That’s 3 out of every 4.
Can you imagine if your doctor or surgeon made mistakes 77% of the time? Or if your car or refrigerator didn’t work 77% of the time? How about if you didn’t pay your bills on time 77% of the time? Or what would happen if you made mistakes 77% of the time at your job?
But the credit bureaus have been aware of that statistic for years and the problem still exists. Why? The credit bureaus make BILLIONS each year by selling information to potential creditors and lower credit scores mean creditors can charge you more fees and higher interest.
Don’t believe it? Okay, fair enough. Test it for yourself:
- Be just 1 day late on your credit card payment and see what happens: You immediately get hit with a $39 late fee, your interest rate shoots to the default 29% and the late-pay is reported to the credit bureaus immediately. That 1 day in turn works to lower your credit score on your credit report (which is the key factor in determining IF you qualify for credit and at what interest rates) for the NEXT 7 YEARS. Do that just once a year, then apply for a new credit card and see what sort of rates and fees you get offered.
- Pay your mortgage just 1 day late and see what happens: a 5% late fee (that’s $75 on a $1,500 mortgage payment) and the late-pay (reported to the credit bureaus immediately) appears on your credit reports and works to lower your credit score for up to 7 years AFTER the mortgage is paid off (UP TO 30 YEARS!). Do that just once a year, then try to refinance and see what sort of interest rates you get offered and what sort of hoops you have to jump through.
Just 1 day late and you pay for that day for BETWEEN 7 AND 37 YEARS! If our education system was that unforgiving, NO ONE would ever graduate. And if our employment system was that unforgiving, NO ONE would have jobs. Even many criminal acts, including DUI and manslaughter, don’t carry a 7 year penalty. But be one day late on your credit card payment and you pay for that day in terms of extra fees and higher interest rates for 7 years.
Wanna know the most outrageous part of all? It is all 100% legal. It’s just the way the financial system has been set up to exploit people with damaged credit.
“What these folks need is a whole different approach … a whole new battleplan for credit repair.”
And once a person has bad credit, the system is set up specifically so that it is EXTREMELY difficult for individuals to repair or improve their credit score on their own. Sure, they’re encouraged to try it themselves so they feel in control, but the system is designed to thwart their efforts so they get frustrated and give up. Conspiracy theory? Guess again. Surveys suggest that up to 97% of people who attempt self credit repair fail or give up. 97%! And when they do, they land right back in the quagmire again.
That, of course, is the whole point. It’s bad news for the credit-challenged, but it’s great news for the companies who exploit them because they have a captive audience; lifetime customers with no choice but to pay whatever interest rates and outrageous fees those companies demand. Clearly there is a process at work here - an intentional plan to exploit people.
Bad credit happens. But you don’t HAVE to stay there. You HAVE a choice. You CAN fix damaged credit. Just don’t try to do it yourself and end up in the 97%. Get professional help. It’s fast, it’s affordable and IT’S EFFECTIVE.
The Price of Bad Credit Repair Your Credit NOW!
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