Can The Top Credit Repair Companies Really Help Improve My Credit Rating?
The recent past has seen an upsurge in the number of companies offering credit repair services. The million dollar question among the clients and public in general has been whether they can really help, what is that they do, you cannot do yourself?
Credit repair companies cannot do anything illegal or extraordinary:
The truth of the matter is that the top credit repair companies do have the magic of turning around bad credit rating in to good one. However, they may identify some issues which have worsened the credit rating and try to get them from your credit report and see if the credit rating can improve. So, if nothing is done to get rid of the entries in the credit reports which have contributed to the poor credit score, nothing much may be done to help correct it. The only thing credit repair companies can help with is if the entries in the reports are not accurate.
Beware of scammers that promise illegal interventions or unrealistic actions:
What you need to note is that there are many scammers out there who want to take advantage of the desperation among the people who have bad credit rating and want to improve it. As it always advised, if the deal is too good, think twice. For instance, if the company promises it can remove accurate negative information such as unpaid and still outstanding loan, judgment or accuracy, and if it request payment upfront, run away as that is not possible.
There is no magic of improving credit score, and repair companies cannot remove the lawful and accurate reports which show your true credit worth. According to credit experts, the top credit repair companies do not promise unrealistic results or drastic actions since only effort, time and solid plan of repaying the debts will help improve the credit worthiness.
How to identify scammers:
Legit credit repair companies do not apply illegal or orthodox methods to improve the credit score. Many people have lost their money to credit repair scammers who promise quick results. According to Federal Trade Commission (FTC), the following are red flags for scammers –
The company wants you to pay upfront for the service.
Does not disclose the legal rights of the customer (you).
They do not want direct communication between you and the credit bureau,
May engage in illegal activities such as getting you to change your name or create new identity, or may require you dispute the information in credit report, however true and correct it is. Note that giving false credit information is an offence punishable under the law.
The features of legit company:
Credit Repair Organizations Act imposes legal obligations to the credit repair companies. Under the said legislation, the credit repair company should –
Provide contract detailing the exact services they will perform,
Include rights of the customer such as three-day right of cancelling without charge,
Stating the duration it will take before seeing results,
Disclose the total cost of the service, and
Outline any guarantees.
IMPORTANT TO NOTE: under the law, it is illegal for any credit repair company to charge upfront for the service.