A credit repair company is an organization that offers to improve your credit for a fee. Credit repair is the process of hiring a company to correct your bad credit by removing inaccurate and negative information from your credit reports. Unfortunately, none of those promises are true. Credit repair companies offer to “fix your credit by removing 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. How Credit Repair Companies Work The most common way that credit repair companies work is to dispute all the negative elements that appear on your report, whether they are accurate or not. Because the credit bureau has 30 days to investigate, this random dispute method may temporarily produce positive results.
During the consultation, the items in question will not be included in the credit rating and a notice will appear under each disputed item. If the creditor does not respond with proof that the item is correct, the credit bureau will withdraw it. Monthly payments are reported to credit bureaus, which can help people improve a poor credit score. The best companies should offer a variety of credit repair options, depending on the level of service you need.
With the subscription fee structure, the credit repair company has a financial incentive to keep you as a paying customer for as long as possible. When looking for the right credit repair company for you, it's a good idea to review the CFPB's complaint database and check how many, if any, complaints have been filed against you. Accredited credit repair companies will clearly publish their prices and services, so that consumers can select the right package for their needs. The Credit Repair Organizations Act (CROA) requires companies to tell the truth about their products and services.
Credit Saint offers a free consultation to assess your unique situation, your credit scores from the three main bureaus and to identify the next steps you need to take. Once you have registered with the best credit repair company, you will be assigned a personal case advisor. A number of companies claiming to make credit repairs have emerged over time and, although some may provide services that can help consumers, the real results of their efforts may be questioned. When evaluating credit repair companies, you should compare the services they offer and their initial and monthly charges.
However, some good credit repair companies offer a money-back guarantee if the results are not seen within a certain period of time. They are a little more expensive than other credit repair firms, but their quality of work is unmatched. 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 with no obligation. Their A+ rating on the Better Business Bureau is the best in the credit repair industry and they also offer a 90-day money-back guarantee for their services.
With a positive title like “credit repair”, it's no wonder people fall prey to fraudulent practices by credit repair companies.