Credit Repair Company - Caution

09 Mar 2010 @ 8:09 AM

Credit Repair Company - Caution

A credit repair company is by definition a company that helps you to bolster your credit rating through various methods such as checking your credit report for accuracy with the credit repositories (credit bureaus), settling any credit report dispute as it arises, fixing your credit in the wake of bad debts and the like. In other words, this is an organization that helps you to manage your finances better.

Here’s what a credit repair agency can do for you.

A lot of people advocate the “do it yourself” credit ranking restoration method instead of availing the services of a trustworthy credit repair company. Is this really the best route to take? The choice is yours. These are the services a credit repair agency should offer you:

- making sure your credit report is accurate as per each credit reporting agency (there are three of them - Experian, TransUnion and Equifax)
- initiated a credit report dispute when inaccuracies are discovered; following it up until your credit is being reported accurately
- offering advice in regard to the best methods to adopt so you can raise your credit score as quickly as feasible
- counseling you on management of your finances so you will not fall into debt traps again
- facilitating avenues that will enable you to earn your living again
- keep a close watch on the credit report to catch any mistake that could lower your credit score
- advising you on maintaining a favorable credit-to-income ratio that will reflect well on your credit score

What a credit repair specialist can not do for you?

There are those who 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 any credit report dispute overnight - it takes at least 60 days
- repair credit reports overnight - it will take at least 6 months
- wipe off bad debts - it will take at least 6 months
- change facts entered in your credit report - it will delete those which are genuinely not accurate
- wipe off the history of bankruptcy - it can only help you build a better score as a bankruptcy record will stay on your record for a minimum 7 years
- improve your credit in an instant - this is a gradual process and it will take at least 3-6 months

3 red flags that alert you to a fraudulent credit repair company

There are lots of unscrupulous companies out there who thrive on the gullibility and desperation of those who suffer with bad credit to make a fast buck. Heed these warning signs that should tell you that the credit repair company is fraudulent:

- it requires full payment upfront
- too-good-to-be-true promises of fast results
- it introduces you to illegal ways of fixing your credit scores

Avoid any such credit repair company like the plague! Remember, a bad debt or even bankruptcy can eventually be resolved. But using illegal tactics to repair poor credit can backfire in a terrible way. Never be tempted into accepting such “help” because such companies are scammers and will lead you into more trouble.