Credit Repair Companies – Words of Advice
The first thing that needs to be addressed when you’re looking for reputable credit repair services is the affiliations of the business you’re evaluating. All established and reputable agencies will be eager to show you their references on request. Here are some pointers to keep in mind to protect yourself from fraudulent credit repair companies.
1. Make sure the company belongs to the Ethical Credit Repair Alliance (ECRA) or another reputable regulatory body. You are often advised to hire companies who have membership in the BBB (Better Business Bureau) When considering. those businesses affiliated with the ECRA are some of the best.
This body accepts only those members who agree to a stringent code of ethics and any business that gets their approval will represent the best interests of their clients. All credit repair companies that have membership in the ECRA will have to maintain high standards in their business practices. As a result this means protection for you from being “taken” by a predatory scammer.
2. Learn a bit about what credit repair is before looking for assistance. Most of those who end up being cheated when hiring help with their credit, do not know anything about what repair of credit involves. You should be knowledgeable about what credit repair services can do for you and what they cannot.
Only if you have knowledge of the difference, can you identify which organizations are reputable. For instance, no one can remove derogatory accounts on your credit report if those accounts are verified by the credit bureaus. There are those credit repair companies claiming they can completely clean your credit report in as little as a month. Now think for a moment; can this be done without breaking the law? If not – and it clearly is not – you would do better to pass.
3. Do not accept e-mail offers. It’s not fate that sent you an email offering to repair your credit at a time when you are desperately looking for help. These e-mails are sent by scammers who harvest e-mail addresses through unethical means, and send out e-mails by the millions trying to fool an unsuspecting “client” whom they can milk dry!
Don’t be taken in by such tricks. In the vast majority of cases these companies are ripoff artists searching for unsuspecting victims. Honest credit repair professionals will send their offers by e-mail or US mail only when you have ask for them.
4. You cannot legally create a second credit report or a “new identity.” This is the “Big Lie” many people fall prey to, mainly because it would seem to solve all their problems. This belief is once again mainly because people do not understand what credit repair is all about. But the problem is that this technique – called “File segregation” – is illegal!
Your credit score is a reflection of your payment history from the onset of adulthood until the present. How can you get a second and “new” such history So if you were to attempt it, doesn’t it make sense that it can’t possibly be legal? Thus there’s no question that the credit repair companies that offer you such a way out of your problems are scammer.
5. If an agency wants full payment prior to rendering any services, look out! Federal Law stipulates that these credit repair service must present you a written contract and the payment is to be after services have been completed. You also have three days time to cancel the contract if you find it unsuitable.
A company may charge a fee up front for a consultation or analysis of your credit report, and thereafter charge monthly fees as follow-up with the credit bureaus is continued on an ongoing basis. However, if you are required to pay the complete charge before any services have been rendered, there’s a good chance it’s because they know you’re not going to pay them once you become aware that they cannot deliver on their promises. These agencies are scammers and you would be will advised to run the other way!
6. Repairing your credit score and credit report takes time. As explained, no honest agency can solve your credit problems in the blink of an eye or change your credit history entered on the credit report if it can be verified.
In a best case scenario, less serious issues can be fixed within two or three months, by correcting errors in your report, and by means of changing your habits so as to pay your bills on time. More serious problems like repossessions and foreclosures will stay on your report 7 years, notwithstanding top-notch financial management. Bankruptcies cannot be removed for ten years. If you are given guarantees of a fast removal, you can be sure of fraud.
7. Not given a contract? Look elsewhere! If you don’t want to be ” taken” make sure there is a contract; by law you have the right to insist on a written contract. Fraudulent companies will shy away from offering you such a contract, and if they do there will be information missing on aspects of the services, the fees charged, and the like. You will be able to understand the nature of these companies by the contract they offer you. And if there is no contract.
8. Do not trust any agency that guarantees results! Not even the most experienced organization will make guarantees in regard to results of their services they provide you. They can realistically promise to use all legal means to improve your credit score. But don’t ever believe a company that guarantees results.
However, the unfortunate reality is, people believe what they want to hear and prefer to hire a company who tells them as much, instead of hiring an agency that is truthful. Don’t be taken in by this deception! Even though promises of results are more appealing, credit repair companies that give you guarantees regarding results are out to scam you.
9. See if there are counseling services. A lot of credit repair companies offer counseling services at no charge.
If the organization under consideration is not offering them, look a bit beyond. It may be a less than trustworthy company. Reputable companies will educate their clients about repairing credit. The company performs those services that are for those matters that need professional intervention to effect the best results.
10. Bad advice? Beware! Some organizations will dispute all negative accounts on your credit report saying “this is not mine..” Although the short-term results may be impressive, the creditors whose loans have been disputed may later counter it, and it will later be verified by the credit bureaus.
Given the fact that the record-keeping habits of the credit bureaus is appallingly poor, there is a very high probability that the details of any account have inaccuracies. But credit repair companies that have you proclaim “this is not my account” although it really is, cannot be trusted.
As you can see, there are plenty of warning signs to warn you against scams. The most important action you must take before hiring credit repair companies is to be informed in regard to credit repair, and terms like “credit score” and “credit report”. Also learn about laws regarding credit repair and credit repair organizations before you go for any type of credit repair help. A good start is to pay a visit to the web sites of the FTC Bureau of Consumer Protection and the Ethical Credit Repair Alliance.
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