If you think bankruptcy is a fresh start, think again!
Before you consider credit repair consider...
One of the many reasons you should be very cautious about going outside your home for credit consulting or credit repair is information security. One of the worst aspects of utilizing the services of a credit "repair" company is that, in order for them to help you, you must allow them access to all of your credit reports. You can not be sure of who or how many people will have access to this vital information.
Permitting someone you don't know access to this information is...
Extremely Dangerous!
Once someone has the information contained in your credit reports, they
can "assume" your identity and abuse your credit.
Please understand that we are not saying all, or even a majority of, credit repair
companies or "credit counselors" would do such a thing. However, it
can and has happened.
There is absolutely nothing a credit repair company can do to improve your credit that you cannot do for yourself, for free, once you have the proper information and understand the way the system works. It's simple and doesn't take alot of time.
We have investigated many of these "so–called" credit repair clinics, seminars, books, kits and companies that claim they can erase bad credit
We have investigated many of these "so–called"
credit repair clinics, seminars, books, do–it–yourself kits and companies
that claim they can erase bad credit, remove
negative items or "fix" your credit. Don't be fooled by the slick
way they market these services or their claims that they are "credit consultants"
or "credit educators." If the information that appears on your credit
report is accurate, a credit repair company or "kit" cannot have it
removed unless, either they persuade you to mislead or misrepresent the facts,
or assist you in negotiating with your creditors to remove the information. They
claim there are laws to protect you and that they can help you take advantage
of those laws to clear your credit. "The laws" they are talking
about really come down to one very specific provision of the
Fair Credit Reporting Act. Section 1681(i.) states that any information appearing
on a credit report that is disputed must be verified within a "reasonable
amount of time." This generally means thirty (30) days.
The credit repair companies will try to convince you that in many cases it is impossible for credit reporting agencies to verify disputed information within the "required" time limit.
Credit repair companies will try to convince you that in
many cases it is impossible for credit reporting agencies to verify disputed information
within the "required" time limit. And, any information that cannot be
verified in a timely fashion MUST be deleted. While the second part of this statement
is true, the first is not. In the past, it was possible to take advantage of and
benefit to some degree from following their advice. It is no longer that easy.
Now, credit reporting agencies are beginning to use new procedures to re–verify
disputed information such as "Automated Verification." This new procedure
could make the thirty (30) day time limit irrelevant. It is conceivable that in
the not too distant future a credit reporting agency will be able to verify information
in less than 30 minutes! So much for the credit repair business! Don't
be fooled by "before and after" examples of credit
reports showing negative items being removed. One very important fact
that credit repair companies forget to mention is that accurate information which
is disputed and removed may reappear on your credit report.
In another attempt to appear credible, many of these companies offer a "money back guarantee." Un fortunately, experience has shown that there is no guarantee how long they will be in business.
Almost all credit repair companies, when pressed, will tell you that they need anywhere from 60 days to 6 months, or more, to achieve their promised results. That gives them plenty of time to gather clients, then either close down or leave town.
It is also important to understand their promise. If they say they can improve your credit that could mean making one simple correction. If you had 5 negative accounts and they remove one, they have fulfilled their promise, yet you STILL have BAD credit.
One last note. These companies can actually cause additional problems by reporting unpaid balances by dissatisfied customers as uncollectable accounts!
We could point out many other reasons why the tactics used by credit repair companies will no longer be effective. Instead, we prefer to help you discover ways to improve your credit situation.
