Credit Repair Company – Making a Choice
A credit repair company is by definition a firm that helps you to bolster your credit worthiness through various methods such as checking your credit report for accuracy with the credit repositories, settling any credit report dispute as it arises, repairing credit in the wake of bad debts and so on. To put it another way, this is an organization that aids you in managing your finances.
What can a credit repair company can do for you?
A lot of people advocate a “go it alone” credit rating restoration method in lieu of hiring a trustworthy credit repair company. Is that better? That’s up to you to decide. This is what a credit repair agency should offer you:
- checking for errors in your credit report as per each major credit Bureau (there are three of them – Experian, TransUnion and Equifax)
- initiated a credit report dispute when inaccuracies are discovered; and following up until they are completely removed from the credit report
- offering advice on the proper action to take so you can improve your credit score as quickly as feasible
- counseling you on financial management so you will avoid future debt problems
- facilitating avenues that will enable you to earn your livelihood again/better
- keep a close eye on the credit report from each Bureau to catch any mistake that could hurt your credit score
- showing you the way to maintain a good credit-to-income ratio for best results on your credit score
What a credit repair agency can not do.
A lot of people perceive a credit repair company like they would a genie in a magic lamp. But credit repair professionals cannot do everything. Here are some things that a credit repair agency can not do:
- settle credit report disputes at the snap of a finger – it takes at minimum 60 days
- repair credit reports overnight – it requires a minimum of 6 months
- wipe off bad debts – it will take at minimum 6 months
- change facts entered in your credit report – it will get removed those which are genuinely not accurate
- wipe off the history of bankruptcy – it can only help you improve your credit score as a bankruptcy record will stay on your record for a minimum 7 years
- improve your credit score in an instant – this is a gradual process and it will take at least 3-6 months
3 red flags that sound the alarm on a fraudulent credit repair company
It is true that there are plenty of unscrupulous people out there who thrive on the gullibility and desperation of people in financial hardship to make a fast buck. Here are three red flags that should tell you that the credit repair company is fraudulent:
- it requires full payment upfront
- it promises you unbelievably fast results
- it introduces you to illegal ways of fixing your credit scores
Avoid these kinds of companies like the plague! Remember, a bad debt or even bankruptcy can eventually be resolved. But breaking the law to fix poor credit can backfire on you pretty badly. Never be tempted into accepting such “help” because such companies are scammers and will cause you untold grief.