Credit Repair Companies
Credit repair companies must comply with federal and state laws. You can read about the Credit Repair Organizations Act (CROA) regulating these services. There are legitimate credit repair services with a good record of helping people restore their credit and improve their scores.
We recommend only a few who are established and guarantee better results than smaller credit clinics you’ll run across in classified ads or on the Web.
If you don’t want to wait and you’d like a consultation with the most recommended legal credit repair company in America, then click here to call Lexington Law. Their credit consultants will explain how their service works and help you get started repairing your credit.
You can clear up inaccurate information in your report yourself but it takes time and persistence. Challenge the inaccurate information and if there’s good evidence of your claim then the bureaus are likely to remove those negative items. Credit repair companies are popular because they often get positive results.
Credit bureaus must remove anything from a person’s credit report that is due to errors in reporting, recording, or archiving the data. A credit repair consultant cannot advertise that they will have items removed when it’s not legally required to do so.
There are consumer protection laws however you must be cautious. You should diligently check out credit repair consultants before trusting them with your personal information and your money. Before hiring a company or private credit consultant you must become familiar with the Credit Repair Organizations Act, referred to above.
What a Real Credit Repair Company
Wants You To Know
Remember when we said there are professional credit consultants who can help you repair your damaged credit profile? That leaves all the rest, and working with them can get you into legal trouble.
Unethical credit repair companies don’t know how to properly use credit laws to navigate through the system and clean up your credit. Some simply disregard the laws. Credit reporting laws require the removal of any item in a consumer’s credit record that cannot be verified within a certain time-frame, usually 30 days of the dispute.
Credit repair involves challenging every negative entry in your credit file. Unprofessional consultants don’t just challenge the negative items, they relentlessly blast dispute letters hoping that the credit bureaus cannot keep up and will eventually let the negative items fall of your credit report. It’s true that credit laws require the bureaus to drop items that cannot be verified within the legal time limit. However, in reality it’s not so simple or easy to accomplish.
Many years ago this technique worked. Now the credit bureaus are better at recognizing when someone is manipulating their system. They use technologies that filter out frivolous dispute attempts. Once they determine that someone is gaming their system, they are lawfully able to ignore duplicate requests disputing the negative credit entries.
You may see good results at first. However, many of these items will show up again when the credit bureaus receive verification for these accounts from creditors.
Another credit repair method involves technicalities in how an entry shows up in your credit history. For example, if you owed a debt that was paid late or went into collections, the credit repair consultant will challenge the amount of the debt. Their claim is that the bureaus must remove any entry containing inaccurate information, even if the amounts reported are off by a few cents.
This doesn’t work anymore because the Federal Trade Commission considers this to be a method that’s meant to trick the bureaus into removing otherwise valid information from a person’s credit file.
Some unethical credit repair companies have you apply for credit switching your first and middle names or using misspellings of your actual name. They may have you apply for a new Taxpayer Identification Number to use when applying for credit.
If you go along with such schemes, you can find yourself in hot water for committing fraud. To be effective, you must acquire the knowledge to fix your credit yourself or hire an ethical credit repair company who can deliver good results.
Many people have had good results with credit repair consultants. They feel that they were taken more seriously by the credit reporting companies than they would have been if they acted alone as an individual. You can find out about one of the most trusted legal credit repair companies and how they can help you, here at Lexington Law.
The important thing to know is that professional credit repair companies have consultants who specialize in this and repair credit every day for people just like you. They know exactly which forms to use to clear negative items fast. And they know what to say and who to send them to. These credit specialists do everything for you that it would take a person on their own much time to learn.