Is Credit Repair Legit?

Credit Repair Legit

With a slow economy and a credit crunch that makes it harder to qualify for a loan, many people may turn to a credit repair company. Advertisements for these companies can be found in newspapers, on TV and on the Internet. These companies typically promise to erase bad credit histories and improve credit scores. However, if you are not careful, these companies could be scams that leave you worse off. Some red flags to look for include large upfront fees and guarantees. You should also check out the company’s history, customer reviews and educational resources on its website before signing up.

A legitimate credit repair company knows how to find mistakes in your credit report and will work with the credit bureaus to correct them. In addition, it will help you develop strategies for managing your finances going forward. This can include budgeting, financial counseling and creating a plan to pay down debt. However, a Credit Repair company can’t guarantee that it will remove all negative information from your credit report, and it can’t promise to do so within a certain amount of time.

You should be aware that you can do a lot of the work that credit repair companies do for free, including reviewing your credit reports and disputing inaccurate information. It can take a lot of time to do this, but you will save money by doing the work yourself. If you do hire a credit repair company, be sure to ask about the fees and how long it will take them to get results. You should also be aware that you can cancel a contract without paying a fee within three business days.

Is Credit Repair Legit?

A credit repair company should have a clear contract explaining how much it will charge, the services it will provide and the estimated date of when you will see results. It should also clearly state that it cannot guarantee that your negative information will be removed from your credit report. It’s illegal for a credit repair company to charge you up-front fees if it doesn’t deliver on its promises.

If you suspect that a credit repair company isn’t following the law, you can file a complaint with the Consumer Financial Protection Bureau or Federal Trade Commission. You can also contact your state attorney general. If you have been a victim of credit repair fraud, you can seek compensatory and punitive damages from the credit repair company.

Credit repair fraud is a big problem that can leave you worse off than when you started. Before you hire a credit repair company, make sure to research the company and read reviews from past customers. In addition, you should be aware that it’s illegal for a credit repair company that violates the law to suggest that you break the law. You should be wary of any company that tells you to give them your Social Security number or other private information over the phone. This type of activity can be a violation of identity theft laws and can put you in federal prison.