Are you thinking of enlisting the help of a good credit repair service to help you get the good credit you need and deserve?
Credit Repair Companies are a scary and sometimes unethical
Even with the scams and shady reputation many companies have, people are still looking for help. So you aren’t alone, but if you don’t know what to look for, you could wind up right in the middle of a credit disaster that eats a hole in your pocket.
Before you choose to use ANY of these services, you need to read these tips first!
I would love to be able to make this funny, but the sad fact is that too many people have been taken advantage of by this type of situation to laugh about. Maybe you’re one of the people who have been scammed by a credit repair company…
Did you know that many credit repair services and firms are getting shut down because they cannot stick to the laws according to the Credit Repair Organizations Act?
It’s true. So many credit improvement places will lure you in with the promise of becoming debt free in no time, but they don’t include information about all of the fees they will charge. They don’t tell you that in addition to your monthly payments which you will make to them for your credits, you will also have to pay a hefty fee and in all cases, that fee comes off the top of your monthly payment.
This could mean that a very small amount is going to actually pay off your debts! Couldn’t you manage to fix your credit for all that?
Did you know that the CROA requires that all credit repair organizations disclose all of their fees upfront and that you find out exactly where your monthly payment is going?
When it comes to credit, lots of people don’t know these things. We are fooled into thinking that “credit bureaus” a power unlike any other. As if you’re thinking you could just walk up and talk to royalty, right?
These credit repair services feed off of this and will tell you the credit bureaus are impossible to talk to. Not true!!!
They also have to disclose what they are going to charge you.
DID YOU KNOW CREDIT REPAIR ESTABLISHMENTS ARE NOT ALLOWED TO CHARGE YOU ANYTHING UNTIL THEY HAVE RENDERED THEIR SERVICES FOR THAT MONTH?
Don’t be fooled or taken advantage of these credit improvement services!
Make sure you know the Credit Laws that protect Hard Working Americans like you and me.
Now, The Credit Repair Organizations Act also requires that credit repair agencies not ask you to lie about you, your situation or identity.
In other words, if you have a debt on your credit report and you know it’s yours, you can’t tell the credit bureau that it’s not. Not only is this not legal, it’s not ethical.
One of the things that many people don’t realize is that credit repair can be done. Debts can be settled for less than they seem to be and the listings of these debts can be changed from “Settled” to “paid in full”.
Yes, it takes negotiations, but paying off your debts is an important part of the credit repair process.
So if any credit repair services tell you to lie about anything, they are breaking the law and you need to avoid hiring them at all costs.
According to the CROA (See Credit Acronyms) and other legislation, the average consumer (you and me)has the right to dispute listings on their credit report which might be inaccurate and can do so through the credit bureaus!!!
How much does it cost to write a letter? If you have a pen and paper, nothing. Now, how much does it cost to send something certified mail? A couple of bucks maybe? Even at ten dollars for this service, you can save yourself hundreds of dollars when you dispute any inaccuracies on your own and avoid credit repair companies who are out to charge you for what you already can do.
Even if you find that you have to pay off some debt, you can often negotiate with your creditors to settle them for pennies on the dollar and still have them listed as PAID IN FULL!!! That’s it, no extra fees, no struggling for months and months to take care of the situation. Just make sure you know How To Read Credit Report
If you choose to go with a credit repair company and it turns out to be the wrong one, you are paying a monthly fee for them to talk to the “credit bureaus” and your creditors on your behalf. This monthly fee could potentially get you in more trouble than you were before and your credit will be no better in the end. It can be very risky to employ most credit repair services.
Think twice before you choose a credit restoring service and make sure that they are well aware of the laws and your rights before you sign on!!! Your financial future may depend on it! There are legitimate credit repairing firms out there, but many of them are not ethical.
For the best credit services out there, check out my reviews of the best credit repair companies