Credit Repair Company for Credit Repair

A credit repair company is a business that offers debit consolidation loans, debt counseling, or debt reorganization plans that are guaranteed to stop creditor’s collection effort.

You need to be very careful when dealing with these credit repair companies as, oviously, they are in business to make money.

Unfortunately, if you are having trouble paying your bills, you may be tempted to turn to one of this companies that claims to offer assistance to solve your problem. Before you sign up with any of credit repair company, be sure to investigate them thoroughly.

You have to really understand the services the business provides and what it will cost you before signing up with them. Make sure you have a written contract in place and that you understand it.

Unfortunately sometimes when consumers utilize these services, they end up in worse financial difficulty than they were in before. Therefore it is important for you to check with the Better Business Bureau to find out if there are any complaints or problems with these companies. If there has been a complaint about this company, take it seriously.

A credit repair company may charge substantial fees or a percentage of your debts and yet fail to deliver. The fees they charge could add to your debts and do nothing to relieve them.

The Truth About Credit Repair Companies

Despite the fact that U.S Government makes it very clear that nobody can repair your credit except you, the credit repair companies keeps growing in number.

Read the fine print. They may charge upfront fees, maintenance fees, and monthly fees; all of which you are supposed to place in a trust account.

Their Services

What many of these companies do is to write letters to credit bureaus; pointing out false information in your credit report. When credit bureau get the information from them, they will start investigating it. Of course, the same thing happens if you write the letters.

Sometimes they are able to get the information temporarily removed during this period, thus giving you clean credit report. Since this report is temporary, if the credit bureaus find the original information was actually correct, they will add it back to your report again.

The point being, why not do it yourself instead of paying somebody to do it for you?

Now does this mean all credit repair companies are to be avoided? i wouldn't want to make such an assumption. There are likely some credit repair companies that can help you and won't cause you more financial woes.

Some people just simply do not want to handle contacting the credit bureaus themselves and would prefer a third party do so. You may have learned from a friend or family member of a service that helped them and you decide they may be able to do the same for you.

I'm just pointing out that most of what they do, you can do yourself. Since you have legal right to obtain and dispute a copy of your credit report if there is any error in it, you can improve your credit more effectively on your own.

I'm also trying to emphasize that if you do use a credit repair company, you must investigate them thoroughly. There is no valid excuse you can come up with not to.

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