In the US, the price you have to pay for having a poor credit score is substantial. Banks will not issue a credit card; financial institutions will refuse loans; owners will refuse to rent their apartment; showrooms will deny selling you a car; auto-insurers will charge increased premiums, etc. In short, a bad credit score not only hurts you financially but breaks you down socially. So, what is the way out?
The only solution is to repair your credit scores. There is no better way to maintain good credit than to pay all your dues in time and manage all your expenses wisely. However, what if the damage has already been done and you have been reported to the credit bureaus? Here is precisely where credit repair companies step in.
What is a Credit Repair Service?
An individual can also take up their case with the credit bureaus. However, the dispute process takes a lot of time and effort. Plus, you need to be an expert to know the tricks of the trade. Credit repair services bring the right kind of expertise to the table. They offer their services to review your credit reports and take up any negative items for removal with the credit bureaus in return for a fee.
What You Must Know
Unfortunately, like any other industry, the credit repair industry, too, has seen plenty of fraudsters emerging whose only aim is to gobble up your money and add to your misery. Therefore, you must conduct thorough research before you decide to hire one. We present some valuable tips to help you choose an authentic and experienced credit repair service that will do what they are supposed to do, repair your credit.
Fortunately, there are plenty of avenues available where you can check for the authenticity of a credit repair company.
• You can hop on to the Better Business Bureau website and read reviews about the company.
• You can check the CFPB or the Consumer Financial Protection Bureau website for any consumer complaints against the company.
• You can also visit several other review websites for consumer reviews and more information.
If a credit repair service promises much that seems too good to be true, it is usually a sign you should stay away. If it promises to remove accurately and correctly reported negative information, create a new legal identity for you, guarantees a substantial jump in credit scores, or asks you to pay upfront, they are clear signs you might be drawn into a scam.
According to the CROA or the Credit Repair Organizations Act, it is illegal for credit repair services to misrepresent their services and lie about their results. Also, it specifies that credit repair companies should provide you a written contract explaining their services and your legal rights. They should allow a 3-day free cancellation period. Moreover, they should only ask you to pay once they deliver the promised services. So, now you know how to smell arat when it comes to credit repair companies. If you feel you might be a victim or have any other issues, you can send your complaints to the CFPB.
Final Thoughts
Please remember, folks. The reason you are hiring a credit repair service is to turn your life around for the better. If you fail to consider the above and ignore any warning signs, you will only be pushing yourself deeper into trouble.
Resources:
Credit Repair Companies Louisville KY – Fix My Credit Indianapolis IN – Credit Repair Companies Columbus OH
