The Truth About Credit Repair...

Have you ever wondered what companies send you when they claim you can erase bad credit overnight? How about those ads that say you can get any major credit card without a deposit or a credit check? Ads abound almost everywhere these days (online and off) selling books, systems and secrets to help you fix your credit. Many of these programs have claims, which read like the covers of supermarket tabloids:

"In 3hrs my credit score jumped from 580 to 676!"...

"Erase bad credit and smash your debts with just 2 Magic Letters!".

Are these types of claims ALWAYS too good to be true? The answer is "Yes and... no".

While many people would love for you to believe the only thing that can fix bad credit is time; in reality... nothing could be further from the truth. The fact is, time is only one factor, which can fix a credit report, but it is a far cry from being the only factor. How can I back this up? Easy.

Under a consumer, protection law knew as the Fair Credit Reporting Act (a.k.a. the FCRA) the only negative information, which can remain, on your credit report is not what is accurate... but what can be proved as accurate under the FCRA. What is this mean to you?

It means any negative item on your credit report can only remain there if it is accurate and can be proved as such under the guidelines of the FCRA. This undisputable fact presents consumers with both good news and bad news.

The good news is that through the FCRA your credit score can most likely be improved dramatically in a very short period with only a modest amount of effort on your part.

The bad news is that while the actual "work" will take very little of your time, it is vital that you have good information on "how" to go about it. This is the bad news; 9 out of 10 courses on restoring your credit will do nothing more than lead you into snake pits because they will provide you with what the industry refer to as "Boiler Plate" dispute letters. These are nothing more than form letters and... Frankly (more bad news) the Credit Bureaus and Creditors will laugh at you if you try to use them.

While I agree with the Federal Trade Commission (FTC) that "Anything a Credit Repair Clinic can do for you legally, you can do for yourself at little or not cost"... the key element you need for success is the latest inside techniques and procedures to get the results you want. This involves strategies such as "Proof of Contract", "Constructive Notice", "Challenge of Procedure" or "Restrictive Endorsement" and many others.

All these terms may "sound" impressive but they are really quite simple. In the end, it is nothing more than a method of communication, which exercises your consumer protection rights, gets the results you want and raises your credit score. Even more impressive, once you learn how simple it can be by doing it for yourself, you will find there is a fortune to be made doing it for others!

Slow Economy, Slow Job Gains

Job growth will probably rebound from April's meager gain, but not by much. Employment will track the economy's tepid growth rate.

April's ho-hum job figures reflect an economy in low gear as well as attempts by companies to preserve profit margins by limiting new hiring. But the less-than-expected gain of 88,000 jobs -- the lowest monthly tally in about two and a half years -- doesn't mean the economy is heading into a tailspin. In fact, more than half a million jobs were added in the first four months of this year -- not as strong a pace as last year, but by no means indicative of a slump.

Some of the slowdown in Friday's Labor Department report is a bit deceptive. It arises from complex seasonal adjustment estimates each spring relating to the construction sector, which officially shed 11,000 jobs in April. In effect, these adjustments probably made the decline in construction seem worse than it actually was. The employment report also featured a surprising loss of 26,000 jobs in the retail sector, which is likely to pick up again this month as stores start to sell summer merchandise.

There is also good reason to believe that manufacturing, which lost 19,000 jobs last month, could soon post a better performance. March factory orders -- a harbinger of the future pace of business -- posted a solid gain, while a recent survey of purchasing managers in manufacturing showed them to be upbeat about the orders outlook and about future hiring.

That said, don't expect a significant upswing in job creation. Although the economy is likely to steer clear of a recession, the pace of economic growth will remain tepid -- in the 2% to 2.5% range this year. For all of 2007, we expect a total of 1.3 million jobs to be added on a net basis, or an average of about 110,000 a month.

The job report includes some good news on the inflation front: Growth in average hourly earnings slowed a bit, rising a relatively modest 0.2% in April and 3.7% for the past 12 months. At the same time, the unemployment rate rose to 4.5% from 4.4% a month ago.

The Federal Reserve is counting on slower economic growth to loosen up the labor market a bit and hence reduce inflation pressures. This would allow the Fed to avoid raising interest rates and exacerbating the economic slowdown.

We think job trends are on the Fed's preferred path. The unemployment rate is likely to continue to creep higher, reaching about 5% by year end. However, the Fed probably won't feel comfortable about cutting rates until the central bank sees solid evidence that inflation is on a sustainable downward path. So we stick with our outlook for steady rates through this year.