Exotic Wisdom | Credit Repair Company Woes

Credit Repair Company Woes

Many millions of Americans have had financial struggles some time in their lives and have considered using a credit repair company.  During tough times we consider almost any alternative because we are desperate to do something to dig ourselves out of a hole.  In our time of desperation we turn to one of thousands of credit repair companies hoping that we can get a second chance.

Let me first say that not all of the credit repair agencies out there are going to do harm.  If you choose a legal credit repair company that has a solid reputation and many years of experience, you may be able to achieve some level of improvement in your credit score.  The real issue is with the inordinate amount of repair companies out there that have no problem taking advantage of people in tough situations.

Many agencies make unrealistic claims about their abilities to improve you credit situation.  Even worse, some will outright lie; claiming almost supernatural abilities to make all of your credit woes disappear.  Even the best credit repair companies may take several months to make progress on your credit score and in some cases a year or more.

So how do you protect yourself from the vultures out there who will say anything to make a quick buck?  How do you find a reputable company who will not overestimate their abilities in order to convince you to sign on with them?  The answer is to take control of your situation.  Here are a few tips to ensure you are not being bamboozled.

1. Become aware:  Know your actual financial situation.  If you go to the big three credit reporting agencies and get a credit report (you can get one for free each year) you can see how things look before you pay someone to do work for you.  Be aware of all of the negative marks on your credit and tell the credit repair company what you want them to do.

2. Devise a game-plan:  Don’t just let them arbitrarily do work on your credit.  Some companies are not the best credit repair companies out there and they can do more harm than good.  If, for example, they attempt to get an item removed from your credit report through asking repeatedly to remove the same item in a short period of time, the credit reporting agency may throw out the case.  They would say the queries are frivolous.  You dictate the work you want them to do and in what time period.

3. Know the law:  First of all, many people may not be aware of what these credit companies are doing.  One thing is for sure, you can do everything any of these companies would do for you yourself.  You don’t need anyone to do this.  You have the legal right to contest anything that appears on your credit report that you believe should not be there.

4. Know what it is these companies actually do:  There is no secret formula to what a credit repair company does.  Usually most of what they do is write letters to contest negative items on your credit.  Many of them use the tactic of contesting every single item that appears as a negative whether it should be there or not.  Sometimes this works and sometimes it doesn’t.  There is a right way to do this and a wrong way.  If you attempt too much too fast then you are asking for trouble.

There are some cases in which a credit repair agency can improve your credit but make sure you choose the best credit repair company you possibly can.  Do not settle for anything less than the absolute best when it comes to your credit.  Don’t assume just because they charge more you will get better service, you may not.  Always check references and get a money back guarantee if you can.  Don’t use just any credit repair company; try to use one that someone you know had positive results with.

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