Credit Repair Companies - Are they Trustworthy?

     Many credit repair companies make bold claims to fix your credit report.  They claim that no matter what the individuals credit problems are, the company can fix them. Is this true?

     Now some credit repair companies are outright frauds that swindle people with damaged credit.  Experts say these companies have taken millions of dollars from the consumers over the years.

     The reason for this is when your credit is damaged you pay high costs on new credit lines.  Frequently people become desperate for a way to escape these high costs.

     Can they guarantee results?  No, and when a credit repair company guarantees a result this is a huge warning sign.  A guarantee is a good indicator that the company is a fraud and you should not hire them. Also, do not mistake a guarantee to remove a specific item with a money back guarantee.

     Some credit repair companies are legit and can be trusted.  These companies will battle to have your negative listings removed and your credit repaired.  They are usually more powerful in getting the credit bureaus to respond to a dispute.  This is because they are familiar with the credit bureaus and the tactics the bureaus use to avoid investigations.

     When searching for a credit repair company to hire look for refunds or warranties on results.  It is also a good idea to spend a few minutes and find out what people that have used this company say about their results.  This is a good indication of what you should expect.

     Credit bureaus are very resistant to the dispute process because it goes against the purpose of the bureaus.  The bureaus purpose is to assign a numerical value based on past behavior to predict your future repayment behavior.  As well it costs the credit bureaus potential profits when they conduct investigations into a dispute.

     Members of the National Association of Credit Service Organizations, or NACSO go through a very strict and rigorous application and enrollment process to aid in the prevention of fraudulent activity throughout the credit services industry.