Credit Repair Company – Choosing a Good One

A credit repair company is an organization that offers you assistance to bolster your credit rating through various means such as checking your credit report for accuracy with the credit repositories (credit bureaus), settling any credit report dispute as it arises, handling credit repair in the wake of bad debts and so on. In other words, this is a company that help you in improving your credit and financial management.

Here’s what a credit repair agency can do for you.

A good number of people advocate a “go it alone” credit restoration method instead of availing the services of a trustworthy credit repair company. Is that better? It’s your choice. These are the services a credit repair agency should offer you:

- making sure your credit report is accurate as per each credit bureau (there are three of them – Experian, TransUnion and Equifax)
- disputing inaccurate information on your report; and following up until those mistakes have been corrected
- advising you in regard to the best methods to adopt so you can improve your credit score within the shortest possible time frame
- counseling you on financial management so you will avoid future problems
- facilitating avenues that will enable you to earn your livelihood again/better
- monitor the credit report from each of the three bureaus to prevent any fault that could erode your credit score
- advising you on maintaining a favorable credit-to-income ratio that will reflect well 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 professionals cannot do everything. Here are some things that a credit repair agency can not do:

- settle credit report disputes at the snap of a finger – it takes at least 60 days
- repair credit reports overnight – it requires a minimum of 6 months
- wipe off bad debts – it takes at least 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
- increase your credit score overnight – this is a gradual process that requires at least 3-6 months

3 red flags that point to a fraudulent credit repair company

While there are many reputable companies, there are nevertheless lots of scam 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:

- it requires full payment upfront
- it promises you unbelievably fast results
- use of devious or illegal means to repair credit

Avoid any such company like the plague! Remember, a bad debt or even bankruptcy can eventually be resolved. But breaking the law to restore your credit can backfire on you pretty badly. Never be tempted into accepting such “help” because these organizations are not trustworthy and will cause you untold grief.