The very first thing that you should look out for when needing good credit repair solutions is your affiliations of the firm you’re thinking about. All ethical credit repair businesses will be willing to supply you with their references on request. These are some important issues you should take a look at in order to steer clear of deceptive credit repair businesses.
1. The agency you are considering should have membership at the Ethical Credit Repair Alliance (ECRA) or some similar regulatory firm. You are often advised to select companies which are subscribed to the BBB (Better Business Bureau) whenever you are searching for any type of service. When you are searching for good credit repair businesses, companies who are ECRA associates are a superb choice.
This figure has its rigorous codes of conduct and any company that gets their approval will provide you their very best services. The members of this organization need to keep the highest ethical standards in dealing with their customers. This helps to protect you, the consumer, from any type of unethical and sub-standard practices.
2. Before looking for help, educate yourself as to what credit repair is about. Most people who are cheated out of their hard earned money while they are seeking ways out of a financial jam, do not know anything about what repair of credit entails. You have to understand what these services can do for you and what they can’t do.
You’re able to identify agencies that offer false promises only when you obviously understand this difference. For instance, no one can remove negative remarks entered on your credit report if these can be verified. You will discover lots of such credit repair companies telling you that they can provide you a clean credit report within a month or not. Think closely; is this legally possible? If not – and it clearly isn’t – would you still want to pursue such unethical methods?
3. Avoid unsolicited offers you get via email. It is not destiny that sent you an email offering to fix your credit at a time when you’re desperately searching for help. These are fraudulent firms who acquire your email address through various unethical procedures, and are sending out millions of spam mails in the hope that they will”catch” some needy soul whom they are able to milk dry!
Beware of such emails. In 99.9 percent of cases these are fraudulent companies searching for their next victim. Appropriate credit repair companies will send their supplies through newsletters or mails just once you have opted in to get them.
4. It is illegal to create a”new identity”.” This belief is due primarily to a lack of knowledge about credit repair.
Your credit score is a reflection of your entire financial history up to the present time.
5. Demanding complete payment upfront should raise a”red flag” According to Federal Law, you need to have a detailed written contract from the agency beforehand and the payment is to be after services have been completed. In addition you have the right to cancel within three days.
There are agencies that do charge an initial fee for a credit analysis, and thereafter charge monthly fees as they continue the job of following up with disputes regarding erroneous information in your credit report. But if a company demands their entire fee be paid in advance, they are likely doing so because they realize you will not be inclined to pay later when you discover that they cannot deliver on their promises. Such companies are fraudulent and you would do well to avoid them!
6. Repairing your credit score and credit report takes time. As discussed before, a credit company cannot repair your credit overnight by any legal means, nor remove anything in your credit history if it is verified by the credit bureaus.
Best case scenario: it will take about two, maybe three months to solve the less serious issues, by having inaccurate information deleted from your credit report, and by changing your financial habits by consistently paying bills and debts in a timely manner. More significant items ( for example, repossessions, foreclosures etc.) well, even given the very best financial management, remain on the report for seven years. Bankruptcies will stay on the report for 10 years. “Guarantees” that these can be removed overnight indicate fraud.
7. No contract, no pay! A lot of people could avoid being defrauded if they were to insist that there be a contract in writing; and according with the law, this is your right. Fraudulent companies prefer there to be no contract, and if there is one you can expect that information (such as the fees etc.) will be incomplete. You can learn a lot about these agencies by looking at their contract. If they do not offer a contract for any reason whatsoever, stop your dealings with them instantly.
8. If guarantees are offered, look out! Not even the best and most experienced agencies can guarantee the results of their credit repair services. They can assure you – after they study your report – that they will improve your score by any available legal means. But in the business of credit repair results can never be guaranteed.
Unfortunately, it’s the nature of people to be attracted to the company that tells them what they prefer to hear, and hire them rather than a company who is being truthful. Do not fall into this trap! Even though you may prefer to be told that positive results are guaranteed, any company that does guarantee such results is not trustworthy.
9. Look for counseling services. Most reputable credit repair companies will offer free counseling services.
If the company that you are considering to engage does not, try looking a little deeper. It might not be a trustworthy agency. A good and trustworthy company will encourage its clients to become knowledgeable about credit repair. The services they offer are regarding those issues that require continued and painstaking follow-up to make sure the mistakes on your credit report have all been removed.
10. Wrong advice is a red flag! Some agencies will tell you to dispute every derogatory account on your report by saying”this account is not mine” Although the results may be a higher credit score right now, the creditor whose loan had been disputed may counter it at a later date, and the bureau will subsequently investigate and verify it.
Given the appallingly poor record keeping habits of the credit bureaus, there is a very high probability that all the details of any item on your credit report may not be accurate. But credit repair companies that advise you to claim”this is not my account” if you are certain that it is, are not to be trusted.
As you can see, there are enough red flags along the way to warn against possible fraud. Prior to seeking help from a credit repair company, you should educate yourself in matters pertaining to credit, including learning the meaning of the terms”credit report” and”credit score”. You also should know the minimal applicable laws before you go for any kind of credit repair help. A good start is to check out the FTC Bureau of Consumer Protection and the Ethical Credit Repair Alliance.