How to Choose a Credit Repair Company

How to choose the right Credit Repair Company – Don’t be Scammed!

The internet is full of many different and, at times, not too reputable credit repair companies. It is very important that someone seeking credit repair by one of these companies is aware of certain factors and how these companies operate in order to prevent being scammed.

In this light – this article will look at how to pick a credit repair company correctly. Make sure you look at the following four factors or aspects before choosing a credit repair company:

Make sure the company operates with the CROA

To begin, credit repair is not illegal. The fact that so many credit repair companies operate whether directly or indirectly outside of the law might have lent credence to the view that credit repair is illegal. In fact, in the US credit repair companies are regulated by the Federal Trade Commission under a bit of legislation called the “Credit Repair Organizations Act’ (CROA). For this reason, when choosing a Credit Repair Company, it is very important to see if they operate with the CROA. Check that they do before starting any business,or negotiations, with any such Credit Repair Company.

Don’t pay before services are rendered

In line with the previous point – the CROA states that no credit repair company can receive payment before they have rendered a service. Many credit repair companies will ask you for payment upfront. It is very important to note that this is most probably illegal and, furthermore, evidence that such a company does not operate alongside the CROA. This should, again, be reason for not undertaking business with this company. In addition to this – a large portion (even as much as 90%) of credit repair scams use this form of payment. In this light, rather choose a company that has a monthly payment method or that you only pay after deletion of certain records on your credit report (payment after a service is rendered) as they operate under the guidelines legislated by the CROA.

Watch out for large setup fees

Many companies will operate with the monthly payment method. However, often they will charge an exorbitant sign up fee only after you have signed up with them. This is illegal as companies must charge a reasonable initial setup fee. This is law. However, don’t think that companies will obey this law. Unfortunately, most credit repair companies often break the law with little repercussions or consequences. It is up to you to take them to court. Be warned.

Don’t be Fooled by False Promises and Guarantees

Don’t be fooled by any false promises or guarantees. Most credit repair companies even give their clients a specific promise or guarantee to what their credit score will be after they do their work. This is both misleading and illegal as their might be some entries for whatever reason that cannot be removed from your credit report – say it was added illegally or the debt becomes an asset to a certain company. In these two cases such credit repair companies cannot live up to these empty promises.

Lastly, also avoid companies that make specific time promises such as six, nine months or two years to fix your credit report. Such promises, are again, not only fallacious and misleading – and used merely to get a greater client base for these credit repair companies – but are also illegal. Have nothing to do with these companies.

Improve your Credit: Learn How the FCRA Affects Credit Repairs

Need for Credit Repair

Has the local shopkeeper refused you credit? Have you lost your job because your credit report showed poor ratings? These sorts of things happen to people with poor credit reports. Learn how the FCRA affects credit repairs and what you should do. Negative reports like non-repayment of loan or too much credit will show up in the credit report as a negative report. This will affect you immensely. When you want new credit or if you apply for a new loan, the interest will be sky high. The amount you have to pay will shoot up to unthinkable limits. The FCRA Fair Credit Reporting Act and FDCPA Fair Debt Collection Practices Act are consumer laws that come in useful for deleting items that are negative on the credit report.

Use a Credit Repair Company to Improve Your Credit

A credit repair company finds ways to remove negative reports and improve the credit ranking. The FCRA has a rule that states that once the credit assessment authority removes a negative report, it will stay that way until the company to whom you owe money is able to prove that the report can be verified. In order to get the negative report removed, these credit repair companies will ask for payment. Some companies insist on payment before they begin work while others will take money only after they have done the work.

Different Kinds of Payment Models

a) Upfront payment

Credit Repair Organizations Act stresses on result oriented payment method for all dealings. This means that one makes payment for any action involving credit repair only after the execution of the work. Even though this is so, many customers are not aware of it. They will pay their money upfront to fraud companies who invariably do nothing or in some cases vanish with the payment. More than 70% of the people who lost their money, paid upfront to these so called credit repair companies.

b) Monthly payment

These companies will ask initial setup fees to begin work. Then one has to pay them on a monthly basis for the work they do the previous month.

c) Pay after Deletion

This kind of payment is the best. There is no worry about whether the company will take your money and vanish. You only have to make the payment after they remove the negative items on the credit report. If they do not remove it, you do not have to pay. There is no monthly fees charged nor will they ask for any money for maintenance. Therefore, in effect, you do not lose money. You gain your credit rating back.

Advantages of Using a Good Reputable Credit Repair Company

The best solution to repair your credit and enjoy the benefits of a good credit rating on your report is to employ a Pay After Deletion company. In this way, you remain assured of results and you will not lose money to any fraud company. Good credit rating has several benefits like a better paying job, lower monthly payment on loans and insurance payments and you can apply for a new loan. You can circumvent many of the bad loans. One can talk to the lender to whom you owe money and ask them not to mention the loan.

How Can a Professional Credit Repair Company Help You Restore Your Credit

How can a professional credit repair company help you restore your credit? This is one question that runs through the heads of many especially those that are affected with credit score crisis. It is difficult to access credit, or even mortgage with a bad credit reputation. Many people are oblivious of how to go about repairing their bad credit scores. As a result, there are companies that have emerged to help these devastated people restore there credit reputation or attain higher credit scores. Even though the process of overcoming bad credit can be performed by anyone who has a glimpse of the needed information or know-how, many people have still chosen to spend quite a substantial amount of their money for credit repair services to save time and the frustration that people experience while going through the process.

The ability of individuals to repair their own bad credit is a fact that most credit repair companies have admitted. However, these companies are still imperative given the fact that they hire or employ paralegals, lawyers and experts that can accurately and professionally apply their knowledge to make the process easier and effective. Property owners, employers and lenders all check the credit report to evaluate whether or not to accept an individual’s application to their offers. If you find yourself in a bad credit situation that you can no longer access credit service, proper and legitimate credit companies can help you go through the credit repair process.

The credit repair companies help people restore their credit through various means. One is that they will assign an individual an expert that will help him or her run his or her accounts. Managing of accounts bears secrets that can place one in a credit crisis or deliver one from a credit crisis. With an expert assigned to you by the credit company, you can relax as the expert manages your account for you towards the improvement of your reputation.

Good credit repair companies also offers counseling to their customers. They advise customers on how to spend and some minor steps to undertake throughout the process as they take the major course towards solving the credit problem.

These companies study their client’s credit report every now and then to ensure that every thing is accurate. They keep constant communication with their clients and improve the credit score by disputing any erroneous entry that appears on the credit report. Reputable companies that repair bad credit normally protect their client’s record from late payments, repossessions, foreclosures, collections, judgments and liens.

Their legal team ensures that all legal processes are obeyed and all errors especially from unfair institutions that take advantage of people’s finances are corrected and possibly compensated. The process is never through overnight; self-discipline in terms of spending habits and savings is expected from the client. Patience and cooperation too is required on the client’s side as the company goes through proper documentation that can even prove credit report errors.

This is a process that consumes from hundreds to thousands of dollars. Therefore, legitimate and reputable credit repair companies should be consulted by clients. In deed, good credit repair companies can help an individual fix his or her bad credit.

Credit Repair – Everything You Want to Know

This article contains basic information on everything you want to know about credit repair. Credit repair companies are not in business to defraud you but caution has to be taken before deciding from whom to get this service as many who are in business lack the proper skills and experience required in credit repair service. This is mainly because not much is required to start such a business in terms of costs and qualification.

Here are a few facts that you should know about credit repair.

1. The service is legal- this service is regulated by the Federal Trade Commission under the statute “Credit Repair Organizations Act”.

2. You may wipe clean your dirty record but not permanently – The Fair Credit Reporting Act states that for an item to appear on your credit report it must be completely true, accurate and verifiable. If an item lacks any of these attributes then the credit repair company may eliminate the debt from your report though it may be very difficult to make it permanent. This is because sometimes the nature of the debt may be such that it may be transferred/ sold as an asset from one company to another we call this reinsertion. For this to be possible then there has to exist a balance in the accounts of the item in question. This may take months or even years for an eliminated item to reappear in your credit report though you may be lucky if the item lacks a balance.

3. Do not make a fool out of yourself by an assuming that a company will abide by the law- Many debt collectors do not follow the protocols of how and when to include an item on your credit report as specified in the Fair Credit Reporting Act . The main reasons for this is negligence are

a) The debt collectors know that consumers are very likely to forfeit settling their debts if no threat of placing a negative mark on their credit report. |The income earned through this far overshadows the cost of penalties levied for infringement of the law which is restricted at $1000.

b) There are no fines for a company unless a client sues them meaning there is nothing like Credit Police. Debt collectors that is very unlikely that a customer would sue a debt collector since most customers feel they are obliged to pay since they are in debt. This further makes them accept that the debt collector is within their right to have the debt included on the credit report even when the information is inaccurate or unverifiable.

Consumer ignorance on their rights has allowed debt collectors to neglect their due diligence when it comes to FCRA compliance. The FTC, the enforcer of the Credit Repair Organizations Act has never had the plan to investigate rogue credit repair companies/individuals. On rare occasions they go after large companies as they believe that stopping a large company would help more consumers. The main challenge is that this small companies/individuals are in multitudes and can quickly vanish when in trouble and reappear again as new companies with new contacts. So a word of advice , know your rights even if there are laws and the enforcers present.

4. Credit bureaus benefit from the dispute process. When you raise a dispute as the company you have raised a dispute against is charged $.25 cents for every dispute filed. Credit bureaus do not consider a dispute to be a crisis; they see it as lucrative business. This means that they do lack the appropriate enticements to fix some of the intrinsic problems related to their system. Hence the reluctance in rectifying the system.

5. Identity theft is not much of a problem as many think it is. Though this crime is true it is not America’s biggest crime as the media claims it to be. The main issue is caused by the credit bureaus that have inconsistent information on people’s credit report. They normally allow collection agencies to have untrue information on wrong people’s reports and when an error is detected then the client in question is asked to file an ID theft affidavit which causes the high rate of this crime. This false information is not ID theft but most likely an error that occurred during data entry, but the goofy thing is that the credit bureaus have not taken appropriate measures to restore consumer confidence as they have greatly benefited from this falsehood. They usually advice people to pull and monitor their individual credit reports and with this they have been able to put fear on the consumers so that they get paid when you pull your own credit. The credit monitoring industry has been fueled by the consumers’ fear of identity theft which in turn fuels disputes which in turn earns millions for these businesses.

5 Easy Credit Repair Tips You Should Know

1Some people find their credit score dropping down after an exorbitant weekend holiday and suddenly find themselves bankrupt, while a few miss payments here and there, and are punished with bad credit rating. If you happen to find yourself in a similar situation, know that fixing bad credit is difficult, yes, but not impossible.

Here’s how you can try and repair bad credit with the following five easy credit repair tips.

#1: Check your credit report thoroughly.

It’s bad enough that a few indulgences in the past caused your credit score to dwindle down, but that doesn’t mean you should be penalized for the mistakes in your credit report. Roughly 70% credit reports have typos and computational errors in them. Check your report for inaccuracies and if you find any, send it across to Experian, Equifax or Trans-Union, the three largest credit reporting agencies in the US. According to the Fair Credit Reporting Act, you have every right to challenge your credit report for no extra fees.

#2: Check for outdated information and update them accordingly.

Oftentimes, credit agencies do not update their records unless they are requested to. Most people don’t bother sending out vital information to their credit card companies and as a result, face bad credit scores. For instance, in case you are entitled to pay child support by the court of law and your kids turn 18, make sure that fact is clearly mentioned in your credit reports. Suppose, you no longer are subscribed to a certain service, remember to turn off the Autopay feature from your accounts.

#3: Time heals negative credit reports.

If all your credit report information is accurate, there is nothing you can do except wait for it to get better. A bankruptcy would be featured in your report for ten years. Missed payments could last seven years. Criminal offenses stay on your report indefinitely or until FTC rules them out. The time limit for the ten year or seven year period begins at the time of the event being reported. They say time heals all your wounds and it will, most definitely, heal your credit score too. Stay patient and if you can do anything to rebuild your credit rating legally, do so.

#4: Spend less.

Control your urge to shop your credit card off! Carry cash. It helps give you a sense of how much you pay. While it seems tantalizing to want to spend much more than you should, know that it’s going to take you forever to pay it back. If you cannot control your shopping sprees no matter how hard you try, see a therapist.

#5: Save money.

While our forefathers vouched for the art of saving bucks, the word “save” unfortunately doesn’t feature in the modern day lexicon. However, saving money is the key to good times and less financial stress, and eventually a healthy credit rating. If you set aside $50 a week, you save $200 a month, which totals to $2400 a year. Ten years down the line you’ll have $24,000 to brag about. Imagine what saving $200 or $300 each week will give you!

In time, following these tips will help repair your credit and, hopefully, make your financial management easier. Try them and let us know if they help you, or if you have a couple more tips to add.