The term Credit Repair is used to refer to identifying and correcting inaccurate information being presented on a consumer credit report across the three major credit bureaus. This involves disputing the identified items in the form of letters mailed to the bureaus in order to correct or remove the information that is reflected. This also includes a strategic approach to optimize credit scores in order to assist in accomplishing any short or long-term financial goals the customer may have.
Almost every credit repair company is different, not necessarily in the practice of repairing consumer credit reports but in the way they conduct business. Although operational practices may differ, credit repair companies do:
Credit repair companies must operate under strict guidelines instilled by the Credit Repair Organizations Act (CROA). This is a federal law created by the government to ensure that credit repair companies are using correct practices that protect the consumer and prohibits these companies from:
Structure contracts that do not contain cancellation rights. It is illegal for credit repair companies to bind a customer to a contract without having the right to cancel services.
There has been a negative connotation to credit repair companies recently due to companies not abiding by CROA regulations and offering this service for personal gain at the expense of the customer. This is the main reason why most people associate credit repair companies with a scam, although there are plenty of companies who do offer services that abide by federal laws and are legitimately assisting their customers in obtaining better credit scores.
To answer the question, yes. There are plenty of reputable credit repair companies who assist in providing customers with real results in the form of corrections, deletions, and credit-related advice that can change the course of credit situations for the better. By doing diligent research and asking the correct questions, finding the best credit repair company is not as difficult as it may seem. Just remember that results that seem too good to be true may not be true. Protect your identity, credit, and your finances.
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