Stop Telling Credit-Challenged Buyers to "Call Me When You're Ready"

Every agent gets this call. "I'm working on my credit. Right now I have a 550 score, I don't have a job, and I live in my mom's basement. Can I buy a house?" I usually exaggerate it a little when I tell it, but you know the type.

A lot of agents say something like, "Work on those things and call me when you're ready." Then that person disappears, and when they finally are ready, they buy with someone else. At a recent Tuesday training, attorney Bob Willis of Credit Repair Resources explained a better way to handle that call, one that serves the buyer and builds your pipeline at the same time.

First, figure out if it's a credit problem or a money problem

Bob made an important distinction. Someone who is maxed out on every card and behind on a car loan may have a financial problem more than a credit problem. Credit repair isn't going to fix that, though his team is still happy to look and make that call.

The people they can often help are the ones who went through a life event, like a divorce, that damaged their credit, and who are now getting their life back in order and want to buy a home or refinance. Those buyers are worth helping, and they're often closer to ready than they think.

How a referral can keep you in the loop

When you send a client to Bob's company, they tag that client to you. Every 45 days, the client gets a progress report card, and with the client's permission, the referring agent gets a copy too.

That gives you a real reason to stay in touch. You know where the client stands, what they're working on and when they're getting close. Bob describes the moment a client finishes the program as "graduating." At that point, they're ready to talk to a lender, get pre-approved and go shopping, and you're the agent who stuck with them.

Be the second voice in their ear

Credit repair often comes with homework. A client may be told to pay certain cards down to specific balances, keep an older account open, or open a new card, because sometimes you need credit to build credit.

Bob says clients don't always follow through when the advice comes only from his team. A quick call from their agent, "Did you get that card Credit Repair Resources recommended? How's it going?", can be the push they need. It keeps you in the role of trusted advisor instead of the agent who said no.

It's a partnership, not an oil change

Set the right expectation with your clients. Bob compares credit repair to hiring a personal trainer, not dropping your car off for an oil change. His team drafts the dispute letters, but some of them need to be signed and mailed by the client because they have to come from the consumer.

The client also has to send back every response they get in the mail. Bob's team reviews those responses to decide whether a creditor has really supported what it's reporting, and often it hasn't. A client who ignores the mail slows everything down.

Know how to spot the bad actors

Before you send anyone anywhere, make sure the company is reputable. Bob's red flags:

• Promises of a fix in 30 days or less. He says those people are either lying or scamming.
• Illegal shortcuts, like getting a new Social Security number or flooding the bureaus with dispute letters.
• No screening. A good company reviews the credit report first and turns away people it can't help.

Bob's own screening has two steps. Prospective clients pay $30 for a credit report through the company's link, which he uses as a barrier to entry, and then the team does a free review to decide if it can help. If it can't, it offers other advice, sometimes as simple as paying cards down.

Why not just tell them to do it themselves?

People can work on their own credit. But Bob says more than 75% of people who try to fix their own credit quit, because the process is confusing and frustrating, and the bureaus and creditors don't always do what they're supposed to. His comparison: you wouldn't hire someone who doesn't do roofs full time to put a new roof on your house.

Change your script

Instead of "call me when you're ready," try something like, "Let's get you connected with someone who can look at your credit for free, and I'll stay in touch along the way." You serve the client better, and you add another lead pillar to your business.

If you're an agent who wants to build a business on that kind of service, with a team behind you, email me at mike@21mike.com or schedule a time at 21mike.com. To learn more about Credit Repair Resources, visit crr760.com.

Want to see the full session? Watch our Tuesday training with Bob Willis.

Mike Ferrante
The Mike Team at LPT Realty
www.21mike.com
Google Business Profile: https://g.page/r/CSQoYzel0Z68EAE
+1 (216) 373-7727