Choosing a Credit Repair company
is a big decision. Choosing the wrong company could cost you hundreds or even thousands of dollars, and if they are not successful, you have delayed your goal of a good credit score
by months or even years. And if that wasn’t enough, using a fraudulent credit repair service could even get you in legal trouble.
So to help you through this process and help keep you safe from getting taken advantage of, here is a guide to shopping for a credit repair service. Below are some tips you can use to make sure you end up choosing a legitimate credit repair company to help you work towards achieving your credit goals.
Know how the credit system and credit repair work
Before you even begin searching for a credit repair service, you should know the basics of how the credit reporting system works. After all, you wouldn’t go shopping for a new car if you didn’t know anything about how to drive or how cars operate. So make sure before you begin looking for a credit repair service you understand the basics of how the credit bureaus operate, how your credit reports are created, and how they are used, and why it is your responsibility to ensure their accuracy.
Know what a credit repair company can and cannot do
Despite what some credit repair providers would like you to believe, there are no secret tricks to repairing your credit. Credit repair companies use the same methods to clean up your credit reports that are available to you as a result of the numerous consumer protection statutes enacted to help protect you from being taken advantage of by creditors and the credit bureaus. The only difference is that an experienced credit repair company already has the knowledge and experience necessary to take advantage of these credit repair tools. In comparison, it may take you many hours of research and a few months of practice to figure out how to go about effectively restoring your credit.
Look at the services being provided
A credit repair company is legally able to provide all the same credit repair services you can perform for yourself, but this does not mean that all do. Many credit repair services only provide credit bureau disputes which can be effective for some people, but are typically less successful and take more time than pairing credit bureau disputes with other credit repair tactics.
Look for experience and results
While no credit repair company is perfect and ultimately the success of any credit repair effort is dependent on your creditors and the credit bureaus, an experienced company will likely produce faster and more meaningful results than a relatively new company that is still learning the nuances of the system.
Look at the price tag
The goal is then to get the best value for your dollar. To determine this, take into account what services you will be getting for your money and make a best estimate of the relative quality of these services. This should help you get a feel for how companies compare to each other. For example, if one service charges $49 per month for credit bureau disputes and has been operating for only 2 years, you are probably better off using a competing service for $20 more per month that also provides creditor interventions and has been in business for a decade.
Use your common sense
Just as you would at any other time when someone is asking you to part with your hard earned money, when you are looking at a credit repair service, trust your instincts and remember the old adage of anything that sounds too good to be true, probably is.
You should be completely confident that you are making the right decision. It is your credit that is on the line and your money that is being invested. Don’t let anyone pressure you into something that doesn’t feel right.
Wednesday, August 19, 2009
Credit Repair in Today’s Economy
Credit Repair is more important than ever. Creditors have tightened their guidelines, effectively barring millions of Americans from borrowing money. Mortgage lenders, auto finance companies, and credit card issuers have all raised the bar. Borrowers with lower credit scores can expect to be denied, or to pay significantly higher interest rates than borrowers with good credit. If you have credit issues you cannot afford to ignore the potential benefits of credit repair.
Credit Report Errors are Common
To understand the potential of credit repair it is essential to grasp the extent of the inaccuracies built into the credit reporting system. Over three-quarters of all credit reports have errors. The three major credit bureaus would love you to believe that correcting these errors requires nothing more than a click of the button on their websites. This is far from the truth.
The Cost of Credit Reporting Errors
Wouldn’t it be great if credit reports were accurate? After all, your credit score may be the most important number in your life, and will certainly determine the interest rate you pay on your loans. Your interest rate will determine your payment, and a higher payment means a tighter budget. In short, credit reporting errors put a dent in the quality of your life and cannot be ignored.
Look Out For Yourself
A close read of the Fair Credit Reporting Act (FCRA), the legislation that governs the behavior of the credit bureaus reveals a disturbing reality. Although the FCRA requires the credit bureaus to comply with consumer credit repair disputes, it only requires compliance to the extent that corrective measures do not cause financial strain on the credit bureaus. In other words, accuracy is desired, but only in as much as a subjective measure of reasonableness allows.
The Professional Edge
Credit repair could easily become a budget-buster at the credit bureaus. It is in the best interest of the credit bureaus to perpetuate the damaging mythology that credit repair professionals can do nothing more for you than you can do for yourself. Customers of professional credit repair services have long known that credit repair involves far more than disputing obvious errors. A credit repair expert will typically identify twice the number of problems as an untrained consumer. This can mean a major difference in your credit scores.
Professional Credit Repair Qualifications
Professional credit repair involves in-depth knowledge of the FCRA, including reporting period limits, dispute procedures, and the specific obligations of the credit bureaus. A credit repair professional must also have a practical understanding of the FICO credit scoring model, an intimate grasp of the Fair Debt Collections Practices Act and individual state specific statutes of limitation for different debt types. Knowledge makes all of the difference in the results. And when it comes to your credit you cannot afford to settle for less.
Do it Yourself Credit Repair
If you are going to attempt credit repair on your own it is essential that you are well prepared before you begin the process. You should not take any action at all without a thorough grasp of everything involved. I have seen hundreds of people worsen their situation by jumping into the process without proper preparation. One of my favorite do-it-yourself books on credit repair starts with a firm warning that you should not take any credit repair action until you have read the entire book, cover to cover. The book is 500 pages long.
The Choice is Yours
We support the efforts of many do-it-yourselfers and are happy to answer credit repair questions from the DYI community. We have freely shared our knowledge for almost two decades; it is an important part of our philosophy. In the end the choice between hiring a credit repair professional and managing the process on your own depends on your inclination and schedule. If you have the time and energy the task can be rewarding. Our customers tend to be busy people that would rather focus their energies on other things and leave the credit repair to us.
Take the First Step Today!
If you have credit issues, please don’t delay the credit repair process. Some of the results will come quickly, but others will take time. You want to make sure that your credit scores are as good as they can possibly be when you need them. You do not want to be scrambling for a credit score boost at the last minute. Every point on your score counts, and every day in the credit repair process matters. Take the first step now. You will reach your goal before you know it. Good luck!
Credit Report Errors are Common
To understand the potential of credit repair it is essential to grasp the extent of the inaccuracies built into the credit reporting system. Over three-quarters of all credit reports have errors. The three major credit bureaus would love you to believe that correcting these errors requires nothing more than a click of the button on their websites. This is far from the truth.
The Cost of Credit Reporting Errors
Wouldn’t it be great if credit reports were accurate? After all, your credit score may be the most important number in your life, and will certainly determine the interest rate you pay on your loans. Your interest rate will determine your payment, and a higher payment means a tighter budget. In short, credit reporting errors put a dent in the quality of your life and cannot be ignored.
Look Out For Yourself
A close read of the Fair Credit Reporting Act (FCRA), the legislation that governs the behavior of the credit bureaus reveals a disturbing reality. Although the FCRA requires the credit bureaus to comply with consumer credit repair disputes, it only requires compliance to the extent that corrective measures do not cause financial strain on the credit bureaus. In other words, accuracy is desired, but only in as much as a subjective measure of reasonableness allows.
The Professional Edge
Credit repair could easily become a budget-buster at the credit bureaus. It is in the best interest of the credit bureaus to perpetuate the damaging mythology that credit repair professionals can do nothing more for you than you can do for yourself. Customers of professional credit repair services have long known that credit repair involves far more than disputing obvious errors. A credit repair expert will typically identify twice the number of problems as an untrained consumer. This can mean a major difference in your credit scores.
Professional Credit Repair Qualifications
Professional credit repair involves in-depth knowledge of the FCRA, including reporting period limits, dispute procedures, and the specific obligations of the credit bureaus. A credit repair professional must also have a practical understanding of the FICO credit scoring model, an intimate grasp of the Fair Debt Collections Practices Act and individual state specific statutes of limitation for different debt types. Knowledge makes all of the difference in the results. And when it comes to your credit you cannot afford to settle for less.
Do it Yourself Credit Repair
If you are going to attempt credit repair on your own it is essential that you are well prepared before you begin the process. You should not take any action at all without a thorough grasp of everything involved. I have seen hundreds of people worsen their situation by jumping into the process without proper preparation. One of my favorite do-it-yourself books on credit repair starts with a firm warning that you should not take any credit repair action until you have read the entire book, cover to cover. The book is 500 pages long.
The Choice is Yours
We support the efforts of many do-it-yourselfers and are happy to answer credit repair questions from the DYI community. We have freely shared our knowledge for almost two decades; it is an important part of our philosophy. In the end the choice between hiring a credit repair professional and managing the process on your own depends on your inclination and schedule. If you have the time and energy the task can be rewarding. Our customers tend to be busy people that would rather focus their energies on other things and leave the credit repair to us.
Take the First Step Today!
If you have credit issues, please don’t delay the credit repair process. Some of the results will come quickly, but others will take time. You want to make sure that your credit scores are as good as they can possibly be when you need them. You do not want to be scrambling for a credit score boost at the last minute. Every point on your score counts, and every day in the credit repair process matters. Take the first step now. You will reach your goal before you know it. Good luck!
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