Not all
companies promising credit repair are good.
It is worth noting that some fake credit repair agencies make unreasonable promises such as fixing your credit in 30 days. These companies don’t actually “fix” anything.
What they do is send a bunch of letters to the 3 main credit bureaus claiming things on your credit report is wrong and must be removed immediately. They then wait for the bureaus to confirm the information.
The only way to improve your credit is to make an effort to pay your bills on time. Pay off debt, start a savings account and learn how to manage your money better.
But here are a few things you should do BEFORE you hire a credit repair company.
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Order your credit report.
Make sure you have ordered all THREE of your credit reports. Your credit score will vary from one credit bureau to another because not all companies report to all 3 bureaus. Make sure all the good items are reported on the 3 bureaus.
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Contact the bureaus.
Contact the bureaus to remove any INACCURATE information.
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If you see that some of your good credit lines are not reported, contact the company and request that they report to all 3 bureaus.
Some will do it and some don’t. You can ask them for the record of your payment history and submit it to the credit bureaus yourself. This sometimes works. You may need to do it several times before the information appears.
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Be patient.
Credit bureaus have 30 days to respond to a credit dispute.
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Be organized.
Stay on top of your disputes. Make sure you keep all the letters you send and receive from the credit bureaus.
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Set up a personal budget.
Make it a priority to start paying off all your high interest debt. Start saving money for unexpected bills!
If you feel that you can’t do it on your own, find a reliable credit repair company to work with.
How to spot a bad credit repair company:
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Unrealistic promises.
If it sounds to good to be true, it probably is. That is VERY true in the credit repair game.
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Dispute.
They still want you to dispute charges rather than contact the companies in question and work out a settlement account.
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Charges.
They require that you pay them upfront before doing any work for you.
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They don’t want you to contact the credit bureaus directly on your own.
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They promise you a NEW credit identity.
This is a scam. They tell you to stop using your SSN and use a new number. Suggest to apply for an EIN number or tell you to change a few number in your SSN. These are all fraud. In some cases, the new number they give you is someone else’s and they are STOLEN!
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They “coach” you on how to fill out credit applications and show you which info you should lie about.
What To Do If You Have Fallen For A Scam Credit Repair Company
- Contact the State Attorney General
- File A Complaint with the FTC (1-877-FTC-HELP)
- Do a search online for class action lawsuits to take against the company.
