Credit repair companies are high-pressure firms that over-promise and under-deliver. They usually charge high up front fees and promise to fix our credit. Some even cite possible loopholes in the law that can force creditors to remove bad ratings from our credit report. We can do a lot on our own with similar results and save ourselves hundreds if not thousands of dollars by understanding our rights and the system.
The Federal Trade Commission along with several other state regulators have warned time and again that these loop holes in the law do not exist. When it comes to credit repair, only time, a conscientious effort, and a personal debt repayment plan will improve your credit report.
The credit repair industry has a troubled reputation of failing to deliver what they promised. You can do a better job on fixing your credit by learning a few tips that will give you some basic understanding of how to dispute possible incorrect information on your credit.
If you are thinking about getting a credit company or attorney to help get your credit in order, consider the following advice:
A credit repair company or an attorney who specializes in the Fair Credit Reporting Act may be able to provide a valued service. Before enlisting their help, you should ask for recommendations from past clients, avoid paying for counseling services up front, and have an agreement signed detailing the services the company plans to provide.
For All Your Utah Real Estate Needs Contact
The Bronson Barber TEAM
801-712-1607
bronsonbarber@gmail.com
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Bronson,
Great post! Glad to see that some people out there actually care for their clients and are trying to protect them from the wolves out there. As a former Loan Officer, I used to tell my clients to steer clear from Credit Repair Companies as well. But guess what, there are bad realtors and crooked loan officers as well. And don't forget the terrible mechanic and lying lawyers that seem to be a dime a dozen. However, for every shyster, there's an honest guy doing his best to make the lives of his fellow man a little bit better.
Are there credit repair scams out there? You betcha! You are correct. Many companies out there charge a lot of money to delete information from the credit reports. However, there are ways to LEGALLY REMOVE NEGATIVE INFORMATION. First off, most credit reports have errors on them. Even the FTC states that, thus allowing consumers the right to dispute the errors that are on the credit reports. It's not about loop holes though. It's about knowing the law and utilizing it to remove unvalidated, erroneous, outdated, and inccaccurate information. Your avergage joe has no clue what those laws are in detail, and thus unable to fairly dispute the negative items that may be deletable. NO ONE can remove accurate information. Not even the best credit repair company. But eveyone has the right to put the burden of proof on the accuser (the credit bureaus, the collection agencies, and the creditors). If they're not reporting correct info, they must correct it or remove it, per the FTC. And paying off collections will NOT improve your credit scores. It does just the opposite.
Years ago I tried disputing my negative credit on my own. When the roadblocks came, I gave up. I didn't truly no my rights. Credit Repair companies do, and they utilize the law and make sure that you are having your credit report reflect accurate information, good or bad. If you were on trial, wouldn't you want a defense attorney that knew what he was doing, or would you think you could defend yourself better by reading a few law books and some episodes of Law and Order. I'm sure you'd opt to get the legal counsel you were entitled to.
Thanks for letting me share this information Bronson! Good luck and have a great day!