Credit Repair Company – Choosing a Good One
A credit repair company is by definition a company that helps you to bolster your credit ranking through various means such as checking your credit report for accuracy with the credit repositories, taking care of credit report disputes, handling credit repair in the wake of bad debts and the like. In other words, this is an organization that help you in managing your finances and having better credit.
Here’s what a credit repair agency can do for you.
There are many who advocate the “do it yourself” credit rating repair method rather than seek help from a trustworthy credit repair company. Is that better? 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; and following up until your credit is being reported accurately
- advising you on the best course of action so you can improve your credit rating within the shortest possible time
- counseling you regarding the best ways to manage your finances so you will avoid future problems
- facilitating avenues that will enable you to earn your living again
- monitor the credit report from each Bureau to prevent any fault that could lower 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 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 trade lines disputes overnight – it takes 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 remove only those which are genuinely erroneous
- 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
- improve your credit 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 scam credit repair company
There are lots of unscrupulous companies out there who thrive on the gullibility and helplessness of those who suffer with bad credit 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 company like the plague! Remember, a bad debt or even bankruptcy is not forever. But breaking the law to restore your credit can backfire on you pretty badly. Never be tempted into accepting such “help” because such companies are scammers and will cause you untold hardship.