Credit repair has become an industry to itself over the last 5 or so years. With promises better credit and improved interest rates many so called credit repair companies charge a hefty fee and deliver very little in return. In fact, most costumers are often disillusioned when a credit repairer promises to improve and manage their credit but ultimately they often add to current debts and do nothing.
If you are considering using the services of a credit repairer here are some things you should be aware of:
Be cautious of any advertisements that claim repair/fix a poor credit rating. Though a repair company may make a promise that they will improve your credit rating, in reality, there is no credit repair agency that has the power or ability to alter or expunge any truthful information on your credit file.
Though these companies say they can take bad credit history away for fee what they are really doing is lying. Not only do they charge a lot for their services but according to credit reporting law (see the North American Consumer Credit Reporting Act) no one can remove accurate information from a persons credit file. All correct information stays on file for a period of seven years.
It is illegal for credit repair companies to charge a costumer before they can provide results. This includes down payment or payment of any kind. Before payment may be requested there has to be proof that the clients credit was better as a result of actions taken by the repair company.
Many shady companies are out there to scam you. If for instance you see an agency that advertises their ability to improve your credit rating then they are a scam. It is illegal to even make such a claim prior to reviewing your credit history.
Put simply, dont be fooled by misleading ads and out in out lying, most of these companies are there to take your money. Fixing your credit is as simple as making your payment on time and ensuring that the information on your credit report is correct.
Jacob Damier is a credit specialist with over 10 years of experience helping people and companiesout of debt and is an author for CreditConsumerReport .com and is partnered with Veridian and Evergreen Credit Unions. Free information and resources regarding credit is available through our site .