Many credit repair companies start by requesting a copy of their credit report from each of the top three companies. Unfortunately, none of those promises are true. Credit Repair Companies Offer to “Fix Your Credit by Eliminating Negative Elements from Your Credit Report”. They offer to file disputes about negative items on your behalf with credit bureaus and have them removed.
What is the problem with this approach? The whole strategy is based on taking advantage of a legal loophole in the credit system. When accurate items are removed, it is only temporary a few months at most. Credit repair is the process of hiring a company to correct your bad credit by removing inaccurate and negative information from your credit reports. Having a good credit score is important.
Without it, you may be denied low-interest loans and lines of credit, a job, a rent, and even an insurance policy. If your credit report shows a history of debt problems or contains errors, you may consider using a repair service to “clean up” it. However, before you pay, know how these companies work. In the vast majority of cases, hiring an external company will only waste your money.
One of the main things credit repair companies will do is help you build a good credit history. This includes helping you establish a strong payment history and increasing your credit score. They can also help you learn how to use credit wisely so you don't hurt your credit rating again in the future. We believe that legitimate credit repair companies should offer a money-back guarantee if successful disputes are not filed within a reasonable period of time.
That way, you can rest easy and focus on other things while credit repair experts do the heavy lifting. What might seem like a simple and positive solution to your credit situation is actually a series of false promises that are likely to damage your credit. By law, you are entitled to a free credit report every 12 months from each of the three major national credit bureaus: Equifax, Experian and TransUnion. The theory with pay-for-elimination is that it keeps the customer satisfied because it only pays for tangible results, and the credit repair company stays on the right side of the CROA because it doesn't charge its customers until the results have occurred.
The Credit Repair Organizations Act requires companies to provide you with a firm total of costs and an estimate of how long it will take to get results. Advanced: This is your most comprehensive credit repair plan and includes up to 19 negative item challenges per month and 6 creditor disputes per month. While legit credit repair companies can do what they promise, the field is rife with scammers. Credit Saint has earned an excellent A rating on the Better Business Bureau for over 10 years and has helped thousands of customers successfully improve their credit ratings.
If you want a free credit consultation to see if they can help you, you can talk to one of your credit professionals for free without any obligation. You would have to prepare these documents from scratch and you may not do it correctly, which could delay your credit repair process. Enacted in 1996, CROA clearly states what credit repair companies must do, and should not do, to continue to comply with federal law. It's easier to get approved for a mortgage, car loan, or credit card when you have a good credit report.