Finding A Credit Repair Company, 7 Questions You Must Ask Each Company!
Finding a credit repair company you can trust is not an easy task, especially when there are hundreds of companies all claiming they can clean your credit report and raise your credit score within 30 days or less.
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Do your homework. Research the company before you even read the first word on their web page.
- Contact the Better Business Bureau to see if the credit repair firm has had any consumer complaints.
- Check with your state attorney general's office or other state consumer agencies to find out if there are any pending legal investigations against the company.
The FTC warns against relying on chambers of commerce or other trade associations, where membership is based solely on a fee.
Finding A Credit Repair Company.
Know your rights. Credit repair companies must follow specific guidelines from the Credit Repair Organizations Act, which are intended to protect consumers. You should receive an explanation of these rights before signing a written contract, Please Read It Carefully.
You should receive a contract with all of the following information:
- The payment terms for services, including their total cost
- A detailed description of the services to be performed
- How long it will take to achieve the results
- Any guarantees they offer
- The company name and business address
Remember the grace period. The credit repair firms cannot perform any services for you until you've signed a written contract and completed a three-day waiting period. You may cancel the contract without paying any fees during this period.
Top 5 Danger Signals To Look For In A Credit Repair Company!
Stay away from a credit repair firm that does any of the following:
- Promises you the moon. Most negative information stays on your credit report for seven years; judgments and lawsuits are reported for seven years or until the statute of limitations runs out; bankruptcy remain for up to 10 years.
- Advises you to dispute all negative information in your credit report. A company will flood the top 3 credit bureaus with letters disputing both inaccurate and accurate information.
The theory being that most creditors will fail to respond within 30 days and that item will be permanently deleted.
- Offers to help you get a new credit identity. The credit repair firm tells you to apply for an Employer Identification Number or EIN number.
Which has the same number of digits as a Social Security number. Then they instruct you to apply for credit using this and a different address. This practice, known as file segregation, is a federal and state felony.
- Asks you to pay for credit repair before services are provided. This is a direct violation of the Credit Repair Organizations Act, which states that credit repair companies can't charge you fees until after they have completed the promised services.
Credit Repair Company False Claims!
Credit repair companies often make illegal or false claims to lure consumers. They target people with poor credit histories, particularly those with recent bankruptcies who may have difficulty getting new credit or loans.
These organizations falsely claim they can legitimately erase bad credit; remove bankruptcies, judgments, and liens; and create a new credit identity. Moreover, they charge fees Of $200 or more for the same legal steps you can easily do yourself.
Learn How To Boost Your Credit Score, Call for a FREE consultation a paralegal is open to discuss your credit situation. 1-888-551-2845
Return from Credit Repair Company to Free Credit Repair!
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