Top Ten Credit Repair Companies Tips - How Do You Avoid Scams?
The first issue you need to watch for when you're in need of trustworthy credit repair services is the affiliations of the company you are considering. All ethical credit repair businesses will be glad to provide you with their references on request. These are some important issues you should check out so you can avoid deceitful credit repair companies. 1. The agency you're considering should have membership in the Ethical Credit Repair Alliance (ECRA) or a similar regulatory organization. It is commonly advised to do business with those companies who are members of the Better Business Bureau. When you're seaching good credit repair organizations, the companies who are ECRA members are an excellent choice. This organization holds its members to a code of professional ethics, and member organizations are a good choice when looking for quality services. All credit repair companies that find approval under this professional alliance will have to maintain high standards in everything they do pertaining to repair of credit. This serves as protection against being "taken" by a crooked agency. 2. Before looking for help, educate yourself as to what credit repair is all about. The majority of people who get scammed when seeking credit help, have no knowledge of credit repair and what it entails. You must be aware of what can and cannot be done by these services. You can identify agencies who offer false promises only when you clearly understand this difference. For instance nobody is able to delete derogatory items if those items can be verified. There will always be credit companies who promise you clear credit in the space of a month or sooner. Think carefully; is this legally possible? If not - and it clearly is not - would you still want to pursue such unethical methods? 3. Do not respond to e-mail offers if you did not request the information. Don't think that fate has sent you this offer in your time of need. These are scammers you get e-mail addresses using unethical means, then blast spam to millions looking to ensnare another victim they can cheat out of their money! Beware of such emails. In 99.9 percent of cases these are fraudulent companies looking for their next victim. Proper credit repair companies will send their offers through newsletters or emails only after you have opted in to receive them. 4. It is illegal to create a "new identity"." This is, unfortunately, a trap that a lot of people fall for, because it seems like the "magic formula" to ending their financial difficulties. This belief is due primarily to a lack of knowledge about credit repair. However, this practice - called "File segregation" - is illegal! Your credit score is a reflection of your entire financial history up to the present time. How can you get a second and "new" such history? And if you do, would you not have some questions about legality? Isn't it very clear that companies offering these kinds of solutions are not to be trusted? 5. If total payment is asked for before any services have been rendered, this is a warning sign." According to Federal Law, you need to have a detailed written contract from the agency beforehand and the payment is to be after services have been completed. You also have three days time to cancel the contract if you find it unsuitable. There are agencies that do charge an initial fee for a credit analysis, and thereafter charge monthly fees as they continue the job of following up with disputes regarding erroneous information in your credit report. However, if any agency requires that you pay all of your fees upfront, the odds are they are afraid you will refuse to pay once you've discovered they cannot deliver on their promises. These agencies are corrupt and you must steer clear of them! 6. The process of credit repair is time-consuming. As explained earlier, no reputable company can improve your credit score overnight or change your credit history entered on the credit report if it can be verified. Best case scenario: it will take about two, maybe three months to solve the less serious issues, by having inaccurate information deleted from your credit report, and by changing your financial habits by consistently paying bills and debts in a timely manner. More serious entries such as foreclosures and the like stay on your credit report for 7 years, even with the best financial management. Bankruptcies will stay on the report for 10 years. "Guarantees" of overnight removal spell fraud. 7. No contract, no pay! Many people will be saved from the pain of being defrauded if they insisted on a written contract; and according to the law, this is your right. Fraudulent companies prefer there to be no contract, and if there is one you can expect that information (such as the fees etc.) will be incomplete. You can learn a lot about these agencies by looking at their contract. If for some reason a contract is not presented, continue your search for a reputable company. 8. If guarantees are offered, look out! Even the most experienced credit repair company cannot guarantee results in this business. They can assure you - after they study your report - that they will work diligently and use every possible means to improve your credit, provided those means are legal. But in the business of credit repair results can never be guaranteed. Unfortunately, it's the nature of people to be attracted to the company that tells them what they prefer to hear, and hire them rather than a company who is being truthful. Do not fall into this trap! Even though you may prefer to be told that positive results are guaranteed, any company that does guarantee such results is not trustworthy. 9. Look for counseling services. A good many credit agencies provide counseling for free. If the company that you are considering to engage does not, try looking a little deeper. It could be a scam company. A good and trustworthy company will encourage its clients to become knowledgeable about credit repair. The services they offer are regarding those issues that require continued and painstaking follow-up to make sure the mistakes on your credit report have all been removed. 10. Wrong advice is a red flag! Some agencies will tell you to dispute every derogatory account on your report by saying "this account is not mine." Although the results may be a higher credit score right now, the creditor whose loan had been disputed may counter it at a later date, and the bureau will subsequently investigate and verify it. Given the poor record keeping habits of the credit bureaus, there is a very high probability that all the details of any item on your credit report may not be accurate. But if a credit agency tells you to proclaim "this account is not mine" even though you know that it is, do not trust that agency. As we've show, there are an abundance of warning signs to alert you to possible scams. Prior to seeking help from a credit repair company, you should educate yourself in matters pertaining to credit, including learning the meaning of the terms "credit report" and "credit score". You should also know something about the laws that relate to credit repair before seeking help. A good start is to check out the FTC Bureau of Consumer Protection and the Ethical Credit Repair Alliance. Jim Eastman is a fervent writer and takes pleasure in writing on various subjects. To learn more about credit repair companies tips visit http://www.ecraonline.org and get the free report "The Danger Signs to look for in a Credit Repair company" Source: http://www.submityourarticle.com Permalink: http://www.submityourarticle.com/a.php?a=71338 |
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