Credit Repair Services
Yes, you can repair your credit report yourself, though it does take time, research and paperwork. Many people choose not to spend their valuable time learning consumer laws and the process of formulating dispute letters, preferring to let a trusted expert take care of it. This is where a legitimate credit repair service can help you. These companies specialize in credit and consumer issues, and know the strategies and nuances in dealing with the credit bureaus.
Once you order your reports from the credit bureaus, you scan and note any items that you wish to dispute. These can either be inaccurate, misleading, untimely or completely erroneous items that contribute to a bad credit rating. Legally, you can dispute any item, as it is up to the credit agency to prove the transaction. In practice, this is bad advice and is rife with abuse. Accurate but bad credit can only be fixed with time and good financial practices that will eventually improve your score. Examples of items to dispute include loans you know you paid on time but are reported as being late, and transactions or creditor queries you did not authorize.
A credit repair service can then dispute these items on your behalf. Legitimate companies will have attorneys and legal professionals on staff who have extensive knowledge of credit laws and practise time-proven strategies to dispute your items.
Unfortunately, the credit repair industry is full of unscrupulous companies who often give you bad and even illegal advice. Beware of scams promising to legally fix any and all of your bad credit, guaranteed. If it seems to good to be true, it is.
A Checklist to Spot The Professional Credit Report Agencies From the Bad
- Do a search online to find reviews and feedback, and check with the Better Business Bureau where they are located.
- You have a three-day period in which to cancel the service, without penalty.
- No fee should be collected before work has been done.
- Review their business history and number of satisfied clients.
- They should know legal issues, current consumer laws, and apply these laws.
- You have a right to fix your credit yourself. The credit repair company must disclose this information.
- Having a privacy policy is pertinent, as well as confidentiality protection.
A Credit Repair Service Versus a Law Firm
Many companies provide credit repair services – however, they may not have the legal muscle, connections or expertise to adequately represent your interests. A law firm specializing in credit repair should have attorneys and paralegals with experience in dealing with bankruptcies, tax liens, collections, judgements, and other scenarios that contribute to bad credit.
Credit Repair Services
There are many credit repair specialists out there, both good and bad. Most offer excellent services, such as Lexington Law, but some are deceptive, misleading or even fraudulent, whose advice may even land you in prison. Here are some tips if you’re considering a credit repair agency:
- Do they ask for money up front? It is against the law to bill you before providing credit repair services.
- Do it yourself and your legal rights. Do they let you know your legal rights and what you can do for yourself, for free? Beware of companies that withhold vital information to try and make more money off you.
- Hidden fees Are there extra costs for communication, such as long distance calls, faxing, or any other additional expenses?
- “We’ll give you a new credit identity!“ A shady company may suggest applying for an Employer Identification number to create a fresh new credit report. This is known as “file segregation”, and it is very illegal and can result in jail time for you.
- Endorsed by the FTC No credit repair company is endorsed by the Federal Trade Commission, an independent government agency for consumer protection.
- How do they remove bad credit? If the negative information in your credit report is accurate and documented, nothing but time can repair it. Legitimate credit repair services work within the Fair Credit Reporting Act to have inaccurate negative information removed.
Lexington Law
Lexington Law is one such firm with a dedicated team of attorneys and paralegals who specialize in credit repair. Founded in 1991, they have represented over 500,000 people and removed over 2 million items from their clients’ credit reports, 1.2 million of them in 2010 alone. You pay a low flat fee per month (starting at $59.95) for disputing an unlimited number of questionable items on your reports.
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