Before restoring my own credit to what it is today, I had an eye-opening experience that changed my life in ways I could not possibly have imagined. I was looking for a new bank with which I could open a new savings account, for the specific purpose of building new credit.
I did a little research, and then I chose a bank in my neighborhood, since it was convenient and seemed like a good company. I sat down with the bank’s new account manager, a sweet lady with a nice disposition, who explained that due to bank policy and the Patriot Act (you ever read this thing? It's scary!) ~ they would have to run my credit.
I was a little surprised, and I asked her why my credit report had to be pulled for a simple savings account? She explained that the credit check would be run just to make sure that I was not a money launderer or terrorist. I assured her that I was definitely not either of those, and I said that I was just a guy with bad credit trying to open a new savings account. She told me not to worry, that it was just a formality.
The new accounts manager printed off my reports. She reviewed them and within seconds, her kind disposition turned to something similar to that of a guard in a prison movie.
She lifted her eyes from my credit report and said in a very disrespectful tone, “You have been denied.” I noticed a distinct shift in the tone of her voice, as though her nose had been lifted way up in the air, and it seemed as if she was looking down at me as she spoke. I truly thought that she was joking.
I gave a courtesy laugh, but then I realized that she was not joking. She told me that I was in the high-risk category, and that anyone with a FICO score of less than 550 could not do business with their bank.
I went home feeling crushed, angry, and depressed. How would I ever reach my goal of buying the house I had been renting and providing a stable environment for my family? I had worked hard to scrimp and save $10,000 in cash, yet no bank in town would allow me to open a savings account.
First, I felt down and defeated by the system. Then, I got angry.
I decided to fight to get my credit back. I learned everything I possibly could about the Fair Credit Reporting Act, an intimidating 86-page tome about the ways credit can be used for (or against) you. And I discovered the ways in which I could use it to escape my credit quandary.
Within seven weeks of starting my own credit repair, I removed 22 of the 38 negative items from my report. After six months, I had removed all but two of the negative items. In less than six months, I substantially raised two of my credit bureau reports.
One went from a 485 score to a 687, and the other went from a 505 score to a 707!
I was so amazed by this that I changed career paths because of everything better credit did for me. (And if it did for me, it would for other people.)
- Half of the negative marks on my credit were from parking tickets! I never used to pay them, and they went to collections.
- I found a half dozen discrepancies that were just plain wrong.
- I discovered that the big three: Experian, Transunion, and Equifax are for-profit companies! They trade in the business of my (and your) information. When you call and complain about an error, you're an expense to them! No wonder they make it as difficult as possible to get things removed.
So I'm writing this article for the Biznik community with a plea. Especially now that credit is tight and the economy is souring, you simply cannot afford to guard, protect, and (if necessary, repair) your credit to the highest levels you can honestly and ethically achieve.
This isn't so much a plug for me as a wake-up call for you. Use me, use someone else, attempt to do it yourself, but leave this article and go pull your credit reports. (The Federal government required this of the big three and it's free. Click here to get yours.)
If your scores on any of the big three are under 600 (and certainly if under 550!), you've got to do something about it now.
In the end, it will save you thousands in lost opportunities, higher interest, and perhaps even the disrespect of a snarky bank manager.
Bookmark article
Follow article
Email to a friend
Share article
