I had a very interesting meeting today with a gentleman who runs a company called Evolution Credit, www.evolutioncredit.com. He has started this company with the thought of helping people fight the collection agencies of the world that destroy peoples credit, most of the time without the people even knowing that this is going on. The story is best told by him, but I can surmise that at a young age he attempted to purchase a home and had challenges because of a collection account for a company that he never had an account with. Being somewhat intelligent and frustrated by the months of work to remove the information he decided to start a company to help people who were in similar boat as himself.
He has a very thorough working knowledge of Fair Credit Reporting Act, http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm, the The Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA). Utilizing systems and with clients diligent work he can improve credit scores significantly with a 12 month period. With the heavy reliance upon credit scoring in the both the mortgage lending and automobile lending arenas, this can make a huge difference in your cost to purchase a home or a car.
So what does this mean for the average consumer? With the recent changes in mortgage lending, if you want to have flexibility in the type of loan you can acquire or even to be able to qualify for a loan, you are going to have to get your credit scores above 620 to get a loan and above 700 for the premium loans. To do so will take time to manage your credit no different than you would manage an investment. Those that recognize this will benefit and those that don’t will pay a heave financial price.
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