The Truth About Credit Repair Companies
There are many Credit Repair Companies that have popped up in recent years as the need to monitor our credit has increased. A credit repair company is a company which helps you know and repair your credit legally by checking your credit history and disputing errors with creditors and agencies with whom you have agreements. Companies have access to legal advice and are aware of what clients are legally permitted to ask from lenders and credit agencies. A good company will help you get control of your finances and rebuild your damaged credit quickly and easily.
The Federal Trade Commission (FTC) has set standards for the protection of consumers. According to these guidelines, a credit repair company cannot unreasonably take any action in furtherance of its business. Also, it cannot use deception or unfair methods to repair your credit. These laws were put in place to protect consumers from abusive and deceitful credit restoration services.
Many unethical credit repair companies prey upon people who are desperate to get their credit card debt under control. Some companies promise dramatic results in a short period of time, but they don't deliver. In fact, many people find that once they are out of control, they simply don't ever get it back up again. It is important to avoid such companies. You can check the Better Business Bureau for consumer reports on credit restoration services to see if there are any complaints about the company you are considering.
Once you have decided to go with a credit repair company, you will fill out a form which allows the company to access your credit reports and begin collecting information. This information is then sent to the credit bureaus. The credit bureaus are required to send you copies of the negative information they noted on your reports. They are also required to investigate and write to the agencies provided.
The purpose of these investigations is to make sure that the items listed on your credit reports are accurate and should not be removed. In essence, this is to ensure that you receive only the positive information on your credit reports. However, you may be discouraged from using quick fix solutions. Many of these quick fix credit counseling agencies are supported by the major credit card companies, which could mean that the information they provide could be influenced by the credit card companies. This is why you need to thoroughly research and choose a legitimate company.
Another concern you may have is whether or not the credit repair process can be done legally. The fair credit reporting act makes it illegal for any company to promise you quick results and then do nothing to help you. It is also illegal for them to offer you an alternative to the credit repair process such as a written guarantee. Also, they cannot ask you for money before providing results. This means you must choose a legitimate company and provide your credit report to them with the complaint attached.
There are many reasons why you may have negative items on your credit reports. This includes a lack of payment on debts, a change in address, a bankruptcy filing, or even a change in employer. Whatever the reason, you need to dispute the items if you want to raise your credit score. You must follow the guidelines set forth by the credit repair companies, who will assist you in the process. However, before doing so, you must know the information on your credit reports. This means knowing what the creditor reported incorrectly and challenging that information.
If you are unable to raise your credit score through the methods available at the credit repair companies, you may be able to successfully dispute the items with the credit bureaus. However, there are many factors involved in the dispute process. You should research each of the factors, as well as the laws surrounding the issue, before attempting to raise your score with the credit repair companies. This can ensure your success and save you money.
