Are Credit Repair Companies Legitimate?
Best Answer: The world we live in today, good credit opens many doors. Although some of the younger generations might not find out about how a credit rating will affect them until later in life. While there is a statute of limitations on most items reflecting a credit report (sometimes items will stay there for 10 years or more), one needs to be wary of their credit rating. A bad credit score can ruin chances for:
- A house
- A car
- A boat
- A loan to start your own business
Credit repair companies are those who makes it their goal to do everything they can to help one fix a bad credit rating. There are many out there with some outrages claims, but they shouldn’t influence, or discourage from the repair companies that do their job. For the most part, it will take months if not years to fix a credit score. It depends on how bad the rating is and how much money the individual makes. In a sense, these credit repair companies act as a kind of money manager for the individual. Some will help in getting consolidation loans to fix bad debts on a credit rating. Others will contact the debtor and make arrangements for a payment plan, which sometimes becomes lower that the original amount owed.
There will be a bit of trust between the credit repair company and the individual. If one researches the company for fraudulent claims, bad reports, or even terrible word-of-mouth advertising, then they should move on. Companies that don’t promise miracles, have a good standing with the Better Business Bureau, or gets shining reviews on forums and such are the ones to look at. Some of these companies are cost effective, and the final results can be nothing short of an answered prayer.
Not all credit repair companies will take advantage of a needy individual. Research and planning from the individual in need will give peace of mind that the company they choose will help them. Be wary of false promises, but realize that there are legitimate repair companies out there.
In the aftermath of suffering from a financial hardship or even a bankruptcy, you may need to enlist the services of a credit repair company to help get you heading down the right path to rebuild your credit so that you can begin borrowing money once again. This is especially important when you are trying to work towards making a large purchase, such as a vehicle or a house. When you need professional assistance, a credit repair company can work with you to best understand your personal circumstances, and thus give you a game plan to get your credit rating back up and get you on the road to financial recovery.
Reputable credit repair companies are beneficial to those who are unsure how to begin the process of rebuilding credit. The right and best credit repair companies are those who meet the following criteria:
* Have a customer support staff which can be contacted by phone and email
* Disclose pricing and fees up front and explain all options to you
* Treat you with dignity and respect
Once you understand the need for rebuilding credit, using credit repair companies is one way to make sure you have trained professionals on your side to help you through the lengthy and sometimes challenging process.
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LikeDislikeSome credit repair companies are legitimate, however many are not. Repairing your credit takes time and effort. There is no quick fix for bad credit. There are several credit repair companies out there that will offer you a clean slate on your credit report. There is no such thing. Credit repair companies can get negative credit information taken off if it has been put there by mistake or if it is incorrect. What they do not tell you is that you can do that yourself. And save a lot of money in the process.
If you decide to do it on your own, you can get access to your credit report from all 3 credit bureaus for free once every 12 months. If there is missing or incorrect information you can appeal it yourself through the bureaus. This will save you lots of money. If you decide to use a credit repair company, really do your research.
Beware of companies that want to charge you up front before they do any work. Do not go with a company that tells you not to contact the credit bureaus yourself. If they tell you that they can erase all your negative credit such as foreclosures and bankruptcy if it really happened, run. Some companies will tell you that they can get you a new credit identity .This can involve getting and using an employer identification number. You use it to get credit instead of your social security number. This is illegal and you can go to jail. Be sure that you read the fine print of any contracts they want you to sign. And be sure to read the FTC guidelines regarding credit repair companies. Their guidelines can tell you what to look for and how to report a company that is fraudulent.
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