While there are legitimate companies that can help you out, there are also many scams to be aware of.
Credit repair companies will work with their clients to repair their credit scores for a nominal fee. Some of these are legitimate businesses and others are nothing more than charlatans taking advantage of desperate people. Here is what to know about credit card companies and how they can and can’t help you.
A legitimate credit repair company will be able to wash your credit report clean from inaccurate information that can be damaging your credit score. But they will also not be able to help you do anything you can do on your own and for free.
This is where you should be aware of fraudulent companies that make promises they really can’t keep and often demand payment upfront.
Understanding Credit Repair
The credit score of a modern consumer is based on several factors. One of the most important of which is if they pay their bills in a timely fashion. Those that miss payments will have a lower credit score and this can make it difficult or even impossible to obtain credit, car loans, mortgages, and other financial advantages in the future. Poor credit scores can also make it harder to get some jobs, rent apartments and get the best price from insurance premiums.
Credit scores are calculated in detail of the consumer’s credit score and the information included within can be inaccurate much of the time. This is most often caused by creditors that report to the credit bureau and can make serious mistakes. This can also come about by identity theft which takes out credit in the name of a consumer.
Credit repair is the process by which this bad fortune is reversed. If the information included in the report is not correct, there is not much anyone can do about it, this includes professional credit repair companies. In most cases, the false information will stay on the record for a full 7 years until it eventually disappears.
Nevertheless, if there is information on the credit report that is incorrect, the consumer has a right to fight this false information and its effects. They can either do this themselves or pay to have a service do the fighting for them.
But it is important to remember that there is not much that a credit company can do for you that you will not be able to accomplish for yourself at a minimal price. But you may consider hiring a credit repair company if the task seems daunting or you simply don’t have the extra time to work on this.
The first thing to do when you are seeking to improve your credit rating is to examine your report and check it carefully for all inaccuracies. You are entitled by law to one free report from each of the important credit bureaus every year. The three credit bureaus are TransUnion, Experian, and Equifax. You can find more information about getting these credit reports by visiting AnnualCreditReport.com.
You should be aware that the credit information found on the different bureaus will be different. This is because your creditors may report different things to different credit companies.
Once you have obtained your credit report, you will need to check it carefully for errors. The first thing to look for will be reports of late payments, make sure to check these alongside your own records to make sure the report is correct. You should also check for all the accounts and make sure you recognize each of them as your own. If you don’t recognize them all, this could be a sign of identity theft.
If you have discovered any mistakes on your credit report, the FTC (Federal Trade Commission) has outlined a process for correcting these errors.
The first step will be to notify the credit bureau in question about the error. Explain the information you are disputing and attach any photographs and documents that support your reason for disputing the information. You may even be able to contact the creditors who made the reports directly to challenge the information they have submitted.
It is required by law that your creditors investigate the report within 30 days unless they consider your report to be frivolous. The bureau must then provide the creditor with a copy of your letter and your complaints and supporting documents. The creditor is then responsible to investigate the claim and report back to you within 30 days.
When they have completed their investigation, the credit bureau must make a report of their findings in writing and deliver this report to you. If the credit bureau decides you were right, your creditors must make a note of the mistaken information and provide all the bureaus with the correct information. If the ruling is not in your favor, you will still be required to make an explanation of your report in writing and this will be added to your file.
For the most part, this process can be completed online and all of the major bureaus will provide information on how to report errors in your report to their bureau.
A proper credit repair company will be able to guide you through this process and offer a variety of additional services that can help you to improve your credit rating, such as credit monitoring. What will this service cost you?
For example, Investopedia’s Best Pick is Ovation Credit Services. This company offers two plans for credit recovery with monthly prices ranging from $79 to $109. Both of these plans also include a “first work” fee of $89.
Other companies will charge between $19 to $149 in a month, this depends on the package of services the consumer chooses.
How to Avoid Credit Repair Scams
There are many legitimate companies that can provide assistance in this type of project, but there are some important things to be aware of. Some warning signs to be aware of include:
- Promises to remove all false information
- Suggestions to challenge even accurate information
- Asks for upfront payments.
- The Bottom Line
Legitimate repair companies can be a major benefit in your quest for a clear credit score. But it is important to remember that they will not have any special capacity you don’t already have. Finally, be sure to be aware of scams in this process.
Ready to get your credit fixed, and get a free consultation with one of our expert credit repair experts. Call Credit Supreme today at +1(877) 334-4567, or click our “Get Started” button at the top of our website.
You will be thrilled that you did!