A credit repair company by definition is an organization that works to boost your credit worthiness by different techniques like contacting the credit reporting bureaus to verify the accuracy of your credit report, dealing with any credit report dispute as it arises, repairing your credit report, fixing your credit report in the wake of bad debts and so on. Stated another way, it’s a firm that helps you improve your credit and improve your finances.
What can a credit repair company can do for you?
There are many people out there who advocate the “go it alone” approach when it comes to credit repair, and shun the services of a credit repair company. Is that better? You decide. This is what the credit repair company can do for you:
- checking each credit report (from the three bureaus) for accuracy – TransUnion, Experian, and Equifax)
- initiated a trade line dispute to remove inaccuracies; following up until they are entirely deleted from the report
- offering advice on the best course of action to restore your credit as soon as possible
- counseling you regarding the best ways to manage your finances so you will not fall into debt traps again
- taking steps that will enable you to again earn your living
- keep a close eye on the credit report that each credit bureau maintains to prevent any fault that could erode 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 company can not do for you?
There are many people who approach a credit repair company like they would a genie in a magic lamp. You cannot expect a credit repair firm to do these things:
- settle any credit report dispute overnight – it takes a minimum 60 days
- restore your credit at the snap of a finger – it takes a minimum of 6 months
- wipe off bad debts – it will take no less than six months
- alter factual information contained in your report – it will delete items that are definitely being reported in error – delete a bankruptcy history
- it can only help you build a better score as a bankruptcy record will stay on your record for a minimum 7 years – increase your credit score overnight
- this is a gradual process that requires at least 3-6 months
3 warning signs that point to a fraudulent credit repair company
It is true that there are plenty of unscrupulous people out there who thrive on the gullibility and helplessness of indebted people to make a fast buck. Pay attention to these three red flags that will alert to a company who is fraudulent:
- payment is asked for upfront – it promises you unbelievably 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 is not the end of the world. However, going against the law to fix poor credit can backfire on you pretty badly. Don’t ever accept this type of “help” as it will lead you down the pathway to trouble.
Jim Eastman is a strong advocate of business ethics. If you suffer from bad credit a credit repair company can be a godsend – or scam you for all your worth! Visit http://www.ecraonline.org for the free report “The Danger Signs to look for in a Credit Repair company”
Article from articlesbase.com