A credit repair company is by definition a firm that helps you to improve your credit through various means such as checking your credit report for accuracy with the credit repositories (credit bureaus), settling any credit report dispute as it arises, handling credit repair in the wake of bad debts and so on. In other words, this is a company that help you in managing your finances and having better credit.
What a credit repair agency can do.
A lot of people advocate the “do it yourself” credit ranking restoration method rather than seek help from a trustworthy credit repair company. Is that better? It’s your choice. This is what a credit repair agency should offer you:
- checking the accuracy of information in your credit report as per each credit bureau (there are three of them – Experian, TransUnion and Equifax)
- disputing inaccurate information on your report; following it up until they are completely removed from the credit report
- offering advice on the best course of action so you can improve your credit rating as quickly as feasible
- counseling you on management of your finances so you will avoid future problems
- facilitating avenues that will enable you to earn your living again
- diligently monitor the credit report from each of the three bureaus to catch any mistake that could lower 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 specialist can not do for you?
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 requires at minimum 60 days
- repair credit reports overnight – it will take at minimum 6 months
- wipe off bad debts – it requires at minimum 6 months
- change facts entered in your credit report – it will get removed those which are genuinely errors
- wipe off the history of bankruptcy – it can only help you bolster your credit score as a bankruptcy record will stay on your record for a minimum 7 years
- increase your credit score by tomorrow – this is a gradual process that will take at least 3-6 months
3 warning signs that sound the alarm on a fraudulent credit repair company
While there are many reputable companies, there are nevertheless lots of scam out there who thrive on the gullibility and helplessness 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 asks for their fees in full upfront
- it promises you unbelievably fast results
- use of devious or illegal means to repair credit
Avoid these kinds of companies like the plague! Remember, a bad debt or even bankruptcy is not forever. But breaking the law to restore your credit can backfire in a terrible way. Never be tempted into accepting such “help” because these organizations are not trustworthy and will cause you untold grief.
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