A credit repair company by definition is an organization that offers you assistance to boost your credit history by different techniques like checking the accuracy of your credit reports with the credit bureaus, dealing with any credit report dispute as it arises, repairing your credit report, fixing your credit report in the wake of bad debts and so on. To put it in different words, its a firm that helps you improve your financial situation.
What can a credit repair company do for you?
There are many people out there who advocate the go it alone approach when it comes to their credit, and shun the services of a credit repair company. Is that better? You decide. This is what the credit repair company can do for you:
– checking the accuracy of the remarks entered in your credit report as per each credit bureau (there are three of them TransUnion, Experian, and Equifax)
– initiated a credit report dispute when inaccuracies are discovered; following up until they are entirely deleted from the report
– advising you (the indebted person) on what are the best methods to adopt so you can improve your credit score within the shortest possible time
– counseling you regarding the best ways to manage your finances so you will not fall into debt traps again
– facilitating avenues that will enable you to earn your livelihood again/ better
– keep a close eye on the credit report that each credit bureau maintains to prevent any fault that could erode your credit score
– showing you the way to maintain a good credit to income ratio that will reflect well on your credit score
What a credit repair company can not do for you?
There are many people who approach credit companies like they would a genie in a magic lamp.
You cannot expect a credit repair firm to do these things:
settle any credit report dispute overnight it takes a minimum 60 days
restore your credit at the snap of a finger it takes a minimum of 6 months
wipe off bad debts it requires a minimum of 6 months
alter factual information contained in your report it will delete items that are definitely being reported in error
wipe off the history of bankruptcy it can work on improving your credit score as a bankruptcy will remain on your report for a minimum 7 years
increase your credit score overnight
this is a gradual process that requires at least 3-6 months
3 warning signs that point to a fraudulent credit repair company
It is true that there are plenty of unscrupulous people out there who thrive on the gullibility and helplessness of indebted people to make a fast buck. Here are three warning signs that should tell you that the credit repair company is fraudulent:
it asks for their fees in full upfront
it promises you unbelievably fast results
it introduces you to illegal ways of fixing your credit scores
Avoid any such credit repair company like the plague! Dont forget, debt problems and even a bankruptcy is not forever. But using illegal tactics to improve credit will backfire in a terrible way. Never be tempted into accepting such help because these organizations are fraudulent and will lead you into more trouble.
Jim Eastman writes on financial issues and business ethics. If you need credit help (about 80 million American citizens do!) you need to be armed with the information The Danger Signs to look for in a Credit Repair company to make sure whomever you hire is a trustworthy credit repair company. Visit the ECRA Credit Repair Company Blog for a free copy and newsletter.