Myths & Money or perhaps… Shysters Making Sales.
So let’s talk about this lie. Okay I’ll give people the benefit of the doubt let’s talk about an urban legend. But if it is an urban legend then is an urban legend is taking money out of your pocket and not delivering the product that you think you’re buying because it’s not based on anything even remotely related to the truth. The term is Credit Sweep. There are several well-known gurus out there on YouTube who are selling some sort of credit repair service that talk often about credit sweeps. They say things like, “you don’t need credit repair you need a credit Sweep”. “Don’t buy Tradelines, do a credit sweep”, or just the opposite, they’ll tell you that you absolutely should buy their Tradelines and do a credit sweep as well. Of course, this way they can charge you for the Tradelines and for the so called credit sweep.
Let me give you the actual definition of credit sweep. And don’t take my word for it, take the word of a well-known website, Investopedia.com. If you’re ever wondering about a finance, investment, or business term, this is a great place to go look up a word you might not understand. This is what a credit sweep really is. It’s an arrangement between a bank and a corporation that helps both the bank and the Corporation. In this scenario excess funds from a deposit account are used daily to pay down short-term line of credit accounts. From this respect it helps Corporation in that they are charged less interest daily. It helps the bank too, because sweeping the funds to some sort of investment vehicle, the otherwise idle cash or credit, can create a bigger return for them in their investments… albeit a few dollars at a time. It doesn’t sound like much but we were talking about millions and millions of dollars that can add up quickly for the bank and for the corporation.
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The BIG LIE
Now, did you notice that that had nothing to do with you as a consumer? Did you notice that it had nothing to do with the credit bureau or credit reporting agency or Experian or TransUnion or a credit card? Has nothing to do with fixing credit whatsoever guys it’s just a fancy term that these shysters out here can use and because you don’t understand the definition of it, you get hooked into giving them your money believing there to be able to deliver something that doesn’t even exist.
The term Credit Sweep is used to describe the simple but time consuming process of credit repair. It’s simply a combination of words designed to make you think that the process is so complex that only an expert can do it for you and so you need to give them your money. Let’s think about it for second, do you want to hire an attorney for credit repair process? Do you want to learn how to fix your credit yourself and then do the work yourself? Or do you just want a credit sweep and have it all done? Of course we all just want to press a button and have things provided for us, whether it’s to have bad credit go away or $1 million to show up tomorrow in our bank account. Needless to say it Sounds good doesn’t it. Click of the mouse, hand over some money and the whole problem goes away. Right?
Wrong.
In fact if you do this your problems are just beginning.
First of all I just gave you the definitions so I think you can tell that a credit sweep as described by these credit repair companies simply doesn’t exist, at least not legally. But the other issue is this guys there are people who will charge you hundreds of dollars to gain access to your credit file and illegally delete items from your credit report. For starters, that’s fraud and if you get caught, you’re the one to get left holding the bag and going to prison. But then the thing is is just totally shortsighted on your part and here’s why.
A Shortsighted Fix That DOESN’T Work
What’s worse is it simply a shortsighted fix that doesn’t work. Here’s why.
Let’s say you employ some credit repair agency to do a so-called credit sweep. Typically what happens is they challenge every negative item on your credit report whether it’s legitimate or not. This is a technique known as jamming. If Experian or TransUnion or Equifax sees that they are being jammed by you they will immediately assume that you hired a credit repair agency and simply call all of your disputes Frivolous. You just wasted time and money.
Let’s further say that they don’t catch it and is not considered frivolous. Well then you’ll be playing a game with the credit repair agencies and the creditors using the 30 day limitation for the creditors to get back to the credit repair agency with proof that the debt exists. Hey, that’s pretty cool because some of them just simply will miss the time stamp deadline and you get those items removed from your credit report right? Wrong. At least wrong in the long term. They may come off that month but the following month when that same creditor reports again that you’re not paying them, or that your late, or that you are over your limit or whatever it’s gonna go right back on your credit report. You paid all that money to press a button and nothing happened.
The last time I checked, credit repair started at least $100 per month to be a member in those agencies club and then anywhere from $35 up to hundreds of dollars for every item they remove. How much better to just be taught a skill that you can keep for the rest of your life, in pain far less to learn it then to have somebody else do something that’s not even going to work? Does that sound even a little bit worthwhile?
Here’s the Worst Part of the Lie
Let me take this even one step further. Credit reporting agencies update credit files pretty much once a month. Some of these credit consultants and credit repair services promise that they can clean up your credit with a credit sweep in five days or even 24 hours. . The only way to do this is to claim identity theft. Under FCRA rules, if you’ve been a victim of identity theft, the credit reporting agency has got to move on it no later than four business days after they receive notification that you’ve been a victim of identity theft. The thing is, if you’ve not been a victim identity theft than you are now guilty of at least fraud. You may also end up being guilty of wire fraud and mail fraud and perhaps even bank fraud depending on which way things go. And you’re still out the bucks you paid the credit repair agency to fix things for you that they could fix because like I said 30 to 60 days later all the stuff is can be right back on your credit report. And I don’t want to sound paranoid here but don’t think for a moment that the credit bureau is not going to tag your account as somebody who illegally cried wolf; which means anything that anything that legitimately needs to be removed is probably going to be harder to get off of your credit report in the future.
Now, how do you think I know this guys? Do you think that this may have come up before with me personally or perhaps with one of my students?
For My Credit Repair Course go to:
Click Here for the Ultimate Credit Repair Course >
For the FREE Webinar go to:
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