Credit Repair Company Definition
A credit repair company is an organization that helps you to improve your credit score through various means such as checking your credit report for accuracy with the credit bureaus, taking care of credit report disputes, fixing your credit in the wake of bad debts and the like. To put it another way, this is a company that aids you in managing your finances.
What a credit repair agency can do.
A lot of people advocate the “do it yourself” credit worthiness restoration method rather than seek help from a trustworthy credit repair company. Is that better? You will have to decide for yourself. This is what a credit repair agency should offer you:
- checking the accuracy of the remarks entered in your credit report as per each credit reporting agency (there are three of them - Experian, TransUnion and Equifax)
- starting a trade line dispute; following it up until those mistakes have been corrected
- advising you on the best course of action so you can improve your credit rating within the shortest possible time frame
- counseling you on proper management of finances so you will avoid future problems
- facilitating avenues that will enable you to earn your living again
- diligently monitor the credit report to catch any mistake that could lower your credit score
- teaching you how to maintain a good credit-to-income ratio for best results on your credit score
What a credit repair agency can not do.
A lot of people perceive a credit repair company like they would a genie in a magic lamp. But credit repair agencies cannot perform miracles. Here are some things that a credit repair agency can not do:
- settle any credit report dispute overnight - it takes at minimum 60 days
- repair credit reports overnight - it will take at least 6 months
- wipe off bad debts - it will take a minimum of 6 months
- change facts entered in your credit report - it will delete those which are genuinely inaccurate
- wipe off the history of bankruptcy - it can only help you build a better score as a bankruptcy record will stay on your record for a minimum 7 years
- bolster your credit score overnight - this is a gradual process that requires at least 3-6 months
3 warning signs that point to a scam credit repair company
It is true that there are plenty of unscrupulous people out there who take advantage of the gullibility and desperation of people in financial hardship to make a fast buck. Here are three red flags that should tell you that the credit repair company is fraudulent:
- they want your money upfront
- it promises you unbelievably fast results
- use of devious or illegal means to repair credit
Avoid such a company like the plague! Remember, a bad debt or even bankruptcy can eventually be resolved. But breaking the law to repair bad credit can backfire in a terrible way. Never be tempted into accepting such “help” because these organizations are fraudulent and will cause you untold hardship.
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