Can credit repair companies be trusted?
Many credit repai" companies claim to remove negative credit with the flick of a wrist. Their advertisements make bold assertions and money-back guarantees: "Bankruptcy, tax liens, judgments... no problem! One hundred percent guaranteed! Credit report cleared in 30 days or less!" Is this for real?
While some credit repair companies are outright frauds, others are not fraudulent and they use the dispute process to obtain impressive results. In fact, they delete thousands of negative credit listings every day.
Unfortunately, it is risky to trust anyone to help you restore your credit. It is estimated that fraudulent credit repair companies have taken more than fifty million dollars from people without making any significant improvements to their credit. The majority of credit repair companies were started by entrepreneurs without any background or history in credit repair. People have flocked to these "credit doctors" only to discover that their advertisements proved far more impressive than their results. Hiring a credit repair company is sometimes like playing Russian roulette. Many of them are effective and legitimate, but it is difficult to tell which ones are a rip-offs.
So, can credit repair companies guarantee results?
In short, no. It would be like a defense lawyer guaranteeing that the jury will find their client innocent. Stay away from companies that guarantees 100% success as they are often fraudulent. However, when a credit repair company promises a refund if they do not produce positive results is more reassuring as their claims are valid since they are not over committing themselves.
Is it possible to repair my credit with all these obstacles?
The simple truth is that you do not have to endure bad credit for seven to ten years as long as you feel comfortable fighting the accuracy of the items listed in your credit report. If so, it may be worth finding a reputable company that can help. Leaving it up to the professionals can increase your chances of success without having to endure doing all the work yourself. However, for those who cannot afford to hire someone or you have been burned in the past, it is possible to fix these problems on your own.
Repairing Credit Yourself
The Fair Credit Reporting Act gives you the right to dispute any and all items on your credit report which you feel is inaccurate. If the bureaus cannot verify that the information on your reports is correct, then those items should be deleted.
Submitting a claim to dispute items on your credit report is relatively easy as this can usually be done by sending letter to the credit reporting agency. Its getting results that is difficult. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. Remember, the credit bureaus are primarily interested in protecting their profits. Investigating disputes consumes at lot of their time but does not generate any profit for them. Instead, their money is made when people or creditors request a copy of someone’s credit report. Due to this, it seems that the credit bureaus do everything in their power to discourage consumers from filing a dispute by delaying the process and even requiring you to submit more information.
You must decide if you are willing to take the time to do it all yourself if it you are better off hiring someone to take care of it for you. Despite the cost, most people who are serious about fixing their credit choose to allow a company to represent them because they understand the complexities of the dispute process.
December 12, 2013