Does credit repair really work? Part II
In part one of this post “Does credit repair really work? Part I” I talked about some of the situations in which credit repair can help you. Again, if your credit report shows negative entries that accurately reflect your credit history, it’s best not to begin a dispute with the help of an agency for it will only cost you time and money and the likelihood of those entries begin removed is very tough if the information is accurate. An honest and reputable company should be able to tell you that up front.
Credit can be complicated, most people are only concerned with learning the score system and know that as long as their score is above 620, they’re in good standing. But when your credit score drops because of real inaccuracies on your credit report, it’s best to get help to resolve and monitor your report from professional services. However there are things to be aware of when making your selection.
Credit Repair Scams - Because having bad credit and being in need of credit creates a bit of a desperate situation for some, there will always be someone who offers a service that can help. If you’re going to remember anything about this post, remember this: scrutinize a lot in this process. Ask a lot of questions and check the company’s that offer you services. Credit repair scams are everywhere, they advertise online, in newspapers and such. I personally would not trust a wooden stake sign written with a sharpie that says: “Credit Repair, fast and easy, guaranteed results 1-800-555-0000″ It just does not ring well to me and I see them everywhere here in Southern California. Learn to read these advertisements, the use of words like fast, easy, guaranteed, money back guaranteed and excessive use of testimonials can be a hint that these are not legitimate companies.
Ask the representative of the company to explain the methods they use to accomplish this, you need to know precisely what it is that they do. If they mention anything that sounds illegal, like changing your identity, or giving you a new social security number or simply disputing every negative entry regardless of the reasons they’re there, you might want to think twice about hiring them. The Fair Credit Reporting Act says that only items that are unverifiable can be disputed, if you did file for bankruptcy and you had late payments in the past, then these would be verifiable entries. Anyone who suggests that they can be disputed and removed more than likely has a less than agreeable method of doing this.
How does credit repair work? - Really there are only two ways. One is by simply contacting your creditors directly and conversing the situation with them about the entries they made being a mistake. This can work sometimes, but you must have proof that these are errors. No need to get into a screaming match with the creditors, that will not accomplish anything. Contacting the credit bureaus yourself is another approach, by using their dispute process. This will basically transfer the burden of having to verify these entries to the bureaus. This is an important benefit and you should use it. Here are the links to the dispute portals for each bureau:
Should these approaches fail, you need to consider hiring a professional firm to work this problem for you. Again in this process you want to be selective and concentrate on looking for companies that have the experience to take on your case. Their approach is similar to you disputing directly with the bureaus but a legitimate credit repair company makes use of legal procedures and creditors are more keen to listen and negotiate with them.
Selecting a credit repair company - This is one of the most important steps in the process of correcting those inaccuracies. Look for an established company with plenty of exposure that has a high rate of success and experience that can actually help you repair your credit based on inaccuracies. Don’t get sold on promises or silly guarantees. Read everything about them on their websites, do a search for the name of the company and see what other people are saying about them. Having a comprehensive range of services is a plus in any service I seek, and having a high quality ranking is even more important.
Begin your evaluation of these services by visiting the Better Business Bureau and becoming familiar with their rating system. Measure the companies you intend to use against these ratings and simply select the one with the best record.
2 Responses to “Does credit repair really work? Part II”
By Tony on Apr 25, 2008 | Reply
Handy and relevant. Thanks for including links to the credit bureaus and repair companies.
By Charlie on Apr 25, 2008 | Reply
No problem, happy to help. Be sure to read their procedures for disputing credit entries. All three credit bureaus work differently.