A credit repair company is by definition a company that offers you assistance to bolster your credit through various methods such as checking your credit report for accuracy with the credit reporting agencies, taking care of credit report disputes, repairing credit in the wake of bad debts and the like. To state it differently, this is an organization that help you in managing your finances and having better credit.
Here’s what a credit repair agency can do for you.
There are those who advocate a “go it alone” credit ranking repair method in lieu of hiring a trustworthy credit repair company. Is this really the best route to take? You will have to decide for yourself. Here is what the credit repair agency should offer you:
- checking the accuracy of the remarks entered in your credit report as per each credit reporting agency (there are three of them – Experian, TransUnion and Equifax)
- starting a trade line dispute; following it up until they are completely removed from the credit report
- offering advice on the best course of action so you can improve your credit rating within the shortest possible time frame
- counseling you on proper management of finances so you will avoid future debt problems
- facilitating avenues that will enable you to earn your living again
- diligently monitor the credit report from each Bureau to prevent any fault that could hurt your credit score
- advising you on maintaining a favorable credit-to-income ratio for best results on your credit score
What a credit repair agency can not do.
There are those who perceive a credit repair company like they would a genie in a magic lamp. But credit repair professionals cannot do everything. Here are some things that a credit repair agency can not do:
- settle trade lines disputes overnight – it requires at least 60 days
- repair credit reports overnight – it will take at minimum 6 months
- wipe off bad debts – it requires at least 6 months
- change facts entered in your credit report – it will get removed those which are genuinely inaccurate
- wipe off the history of bankruptcy – it can only help you bolster your credit score as a bankruptcy record will stay on your record for a minimum 7 years
- increase your credit score in an instant – this is a gradual process and it will require at least 3-6 months
3 red flags that alert you to a fraudulent credit repair company
While there are many reputable companies, there are nevertheless lots of scam out there who thrive on the gullibility and desperation of indebted people to make a fast buck. Here are three red flags that should tell you that the credit repair company is fraudulent:
- it requires full payment upfront
- too-good-to-be-true promises of fast results
- use of “shady” methods to accomplish credit restoration
Avoid such a company like the plague! Remember, a bad debt or even bankruptcy is not the end of the world. But using illegal tactics to repair bad credit can backfire on you pretty badly. Never be tempted into accepting such “help” because these organizations are not trustworthy and will cause you untold grief.