People with bad credit tend to do everything just to fix their credit ratings. While there are companies that promise you that they can work on your problem overnight, it is important to think twice before signing anything in order to avoid bad credit repair services.
Basically, credit repair services employ experts to deal with those who have credit problems and help them get out of debt. They can systematically examine every aspect of your credit report in order to discover and dispute their legitimacy as well as eliminate inaccuracies.
A lot of people do not have a clear idea about the protections they possess when it comes to hiring credit repair services. These companies should follow several federal laws such as Telemarketing Sales Rule and Credit Repair Organizations Act, which both prohibit credit repair organizations from utilizing misleading practices and receiving up-front fees.
The following are some red flags that every consumer should know to prevent bad credit repair services:
- Bad credit repair services have this pay now service later scheme. They tend to be more interested in getting your payment rather than assisting you with your problem. If the service will not assist until you have paid, drop it and look for another. Also, staff from bad credit repair services act like sales people. Note that a reputable company focuses on dealing with your specific problems while a bad one’s main concern is getting money from your pocket. Getting your money is more important for them than providing you with the service that they have promised.
- Avoid a company that does not notify you about your rights in fixing your bad credit. According to CROA, you have the right to check the services being offered as well as the rates before proceeding to the process. In addition, you can also revoke your contract within 3 days, without charge.
- Bad credit repair services usually make huge promises and present insufficient follow-throughs. If you stumble upon a company that promises things such as changing your identity legally or eliminate your bad credit right away, run off because it uses fraudulent methods that can get you into bigger trouble. For individuals who has severe credit score, the notion of creating a new credit history is tempting but keep in mind that it is illegal to use other Social Security number than your own just to acquire credit.
- Most of the time, bad credit repair services are ‘fly-by-night’ businesses that take off immediately after getting what they want. If the company has a sloppy website and is not well-established, it is better to continue your business somewhere else.
- A bad company will tell you that you cannot do anything about your bad credit rating unless you hire them. Additionally, they won’t advise contacting creditors and credit reporting agencies and won’t provide the essential tools for you to be a better credit consumer.
Not all credit repair companies are rip-offs. You just have to take your time in searching for options and do not rush anything. Remember that the company you choose can have access to your confidential financial information so it is important to pick an honest company that follows credit repair laws and offers trustworthy service. Take your time to study the company before signing anything. Also, make sure that they are transparent in the services they offer.
Joan Geller is a regular credit advisor and regularly contributes to numerous online sites. She offers advice and helps plan the best need action for consumers in order to fix bad credit problem. She provides assistance to individuals who want to avoid hiring bad credit repair service. For more information on Joan Geller, visit www.nationalcreditorganization.com.
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