Credit repair is a service that provides you with a promise that you are going to get your credit score fixed by disputing all the wrong entries. Recently there was a controversy as to whether credit repair can be considered dangerous or a scam, so in this article, we will look at the information.
Credit repair is the process by which entities seek to rectify the errors that have been committed on their credit file.
Credit repair companies provide the service of going through your credit reports from the three credit bureaus: Experian, Equifax, and Transunion to check for errors. These can include:
- From this, it will be wrong information that may be entered for other individuals such as name, address, etc.
- Specifically, they include: Fake, fake, hacked, or associated with a brand, competitor, or an organization not belonging to you.
- Inaccurate account statuses
- Duplicate accounts
- Other errors in reporting may affect your credit score.
It then writes to the credit reporting companies to dispute these entries on your behalf to have them withdrawn. This can in the long run enhance your credit score given that you pay your balance in full and on time each month. Other ways that many companies also present a guide to boosting your credit score include.
Is This Service Risky?
There are a few areas where consumers need to be cautious with credit repair:
Upfront Fees
Some credit repair scams also require a large initial fee from the client before they offer their services. According to the Credit Repair Organizations Act, you cannot be compelled to make payment before the firm has delivered the services as agreed. Well-established companies will also spell out your freedom to cancel at any one time, without undue influence from anyone.
Unrealistic Claims
Some companies are scam artists and will promise results that are too good to be true, such as immediate boosts in your credit score. However, credit repair involves a process and there are no promises that it will work in your favor. Disputes can freshen up in 30-90 days on the credit file and may not cause a big change to the score. The first thing to do is to stay away from companies that make exaggerated claims.
Misleading Advice
Companies suggest that advice to pay for the negative information or even dispute real negative information is helpful or to purposely manipulate a report. This may be unlawful and will lead to credit score complications, including fines, if apprehended and will exceed the benefits of scores. It is also important that the company offers legal credit improvement services only.
If You're Still Unsure...
However, there are ways to reduce this risk like choosing a recognized company with accreditation, comparing different quotes, reading reviews, and seeing whether there are any complaints with relevant bodies that protect consumers. Also, learn your rights and what the company is legally allowed to demand and even bill you for.
The Bottom Line
In itself, credit repair is not high risk if one is wise enough to work with the right provider. However, as in any industry, consumers should be wary of the catches and false information out there. If you are clear on why it can work, select a credible credit repair company, and stay away from legal tips, then a credit repair service might be helpful. Just do not expect much as to how much you’ll get out of it, or how soon it will happen.
Call now for expert credit repair services: (888) 803-7889
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