Episode 57, Segment 3: Tips From Consumer Credit Expert, Doc Compton
John Schutze and Andrew Thurston were incredibly excited to welcome Consumer Credit Expert Doc Compton to the show this week. With two decades of experience in consumer credit and credit repair, he's one of the foremost authorities on credit repair and restoration. Listen to the podcast or continue reading below to hear some of Doc's tips and tricks for getting great credit.
The Big Takeaways
Credit bureaus commonly make mistakes on credit reports
"If the system actually worked the way it was written to work, it'd be great," Doc says. The problem is that there are so many people in the bureaus and such a high volume of data, that errors are to be expected. Unfortunately, the bureaus have a blasé attitude when it comes to dealing with any errors they make. While they do maintain a lot of good information, they're not on the side of the consumer - they're on the side of the banks.
"Their job is to provide a statistical analysis of how risky a buyer is to lend to, so they're protecting the interests of the banks versus the consumers," Doc says.
That's why it can be important to use a credit expert who knows how to interact with these credit bureaus in order to correct any mistakes made on your score.
Every credit profile has a different timeframe for recovery
In the mortgage business, John often sees people in two categories of credit reports: The first includes clients with just one or two medical collections and a late payment, or maxed out credit card, and usually he can give them suggestions on how to recover from the credit score.
The other profile often seen may be someone who had a major financial hardship in the past and now has lots of collections and late payments, thus receiving a very low credit score. Doc says because every credit profile is so profoundly different, it can be hard to say how long a person needs to get their credit back to a good place. For instance, it can take as little as 60 days to up to a year to get from a 500 to a 620 credit score.
It's important to use a credit expert when you're trying to make major improvements to your credit score. Experts like Doc can help you with past bankruptcies and help to correct errors made by major credit companies and even get some of the errors removed!
Doc's Steps to Great Credit
- Figure out where you're at
The best place to start is figuring out where your credit score lies on the spectrum by getting a credit report at creditgecko.com or freecreditreport.com.
- Correct any errors
If you believe there are any mistakes or errors with the information provided in your credit report, it's important that you try to get them corrected or removed - either yourself, or with a credit professional like Doc Compton.
- Build your credit
Many people simply don't have enough credit built up to purchase a home. If this is the case for you, then you must build some. Buy a secure credit card from creditgecko.com to start a line of credit, which can significantly improve your credit score.
- Maintain that credit
Once you've established good credit, the key is to maintain it! The easiest way to do this is simply by paying your bills on time, all the time. Just one late payment on a loan or credit card can bring your credit score down, so it's important to ensure you are always conscious of paying your bills on time.
Doc Compton has plenty more to say about credit repair and restoration and is always available to answer any questions you may have about your credit score. Visit www.doccompton.com to learn more or give him a call at 888-996-6342.
Listen to the Austin Mortgage Report every Sunday at 3PM on Talk Radio 1370AM to hear more great mortgage advice from John Schutze, Andrew Thurston, and more special guests each week.