The first thing you should look for when you need good credit repair services is the affiliations of the company you are considering. All ethical credit repair companies will be eager to provide you with their references upon request. These are some important questions that you should check in order to avoid fraudulent credit repair companies.
1. The agency you are considering must be a member of the Ethical Credit Repair Alliance (ECRA) or a similar regulatory body. It is often advisable to choose companies that subscribe to the BBB (Better Business Bureau) when you are looking for a type of service. When looking for good credit repair companies, ECRA member companies are a great choice.
This organization has its own codes of conduct and any company that gets its approval will offer you its best services. The members of this organization are required to respect the highest ethical standards in their relations with their clients. This helps protect you, the consumer, against any kind of unethical and unethical practices.
2. Before seeking help, find out about credit repair. Most people who are deprived of their hard-earned money by looking for ways out of a financial jam do not know anything about credit repair. You must learn what these services can do for you and what they can not do.
You can identify agencies that offer false promises only when you clearly understand this difference. For example, no one can remove negative comments on your credit report if they can be verified. You will find a lot of credit repair companies telling you that they can give you a clean credit report within a month or less. Think carefully; is it legally possible? If it is not – and this is clearly not the case – would you still want to pursue such unethical methods?
3. Avoid unsolicited offers that you receive via email. It is not a coincidence that you have sent an offer by email to repair your credit at a time when you are seeking help. These are fraudulent companies that get your email address through various unethical methods, and send millions of spam emails in the hope that they will "catch" some people who have need what they can dry!
Watch out for these emails. In 99.9% of cases, they are fraudulent companies looking for their next victim. Appropriate credit repair companies will send their offers through newsletters or emails only after they have chosen to receive them.
4. It is illegal to create a "new identity". "It's a huge mistake that many people choose to believe, mainly because it seems to solve all their problems.However, this practice – called" File Segregation "- is illegal!
Your credit score reflects How is it possible to acquire a "new" credit history? And if you do, do not ask yourself questions about legality? Now you realize that the credit repair companies that you offer such a way out of your problems is fraudulent?
5. Require full payment from the outset should raise a "red flag." According to federal law, you must have a detailed written contract of the law. agency and payment must be after services.You also have the right to cancel within three days.
Some agencies charge an upfront fee for a credit check, and then charge a monthly fee for follow up on disputes ng erroneous information in your credit report. But if a company requires its own expenses to be paid in advance, they probably do it because they realize that you will not have to pay later when you discover they can not keep their promises. These companies are fraudulent and you'd better avoid them!
6. Repairing your credit score and credit report takes time. As mentioned before, a credit company can not repair your credit overnight by any legal means, nor delete anything in your credit history if this is verified by the credit bureaus.
Ideal scenario: It will take about two, maybe three months to solve the less serious problems by removing inaccurate information from your credit report and changing your financial habits by paying regular bills and debts. Larger items (for example repossessions, foreclosures, etc.), even with the best possible financial management, remained in the report for seven years. Bankruptcies will stay on the report for 10 years. "Guarantees" to remove them overnight indicate fraud.
7. No contract, no salary! Many people could avoid being defrauded if they insisted that there is a written contract; and according to the law, it's your right. Fraudulent companies prefer that there is no contract, and if there is one, you can expect the information (such as fees, etc.) to be incomplete. . You can learn a lot about these agencies by consulting their contract. If they do not offer a contract for any reason, stop your relationship with them instantly.
8. If warranties are offered, pay attention! Even the best and most experienced agencies can not guarantee the results of their credit repair services. They can assure you, after studying your report, that they will improve your score by any legal means available. But in the credit sector, results can never be guaranteed.
Unfortunately, the nature of people to attract into the business tells them what they prefer to hear and hires rather than a company that is sincere. Do not fall into this trap! Even if you prefer to be informed that positive results are guaranteed, any company that guarantees such results is not reliable.
9. Look for consulting services. The most reputable credit repair companies will offer free consulting services.
If the company you plan to hire does not do it, try to look deeper. This may not be a trusted agency. A quality and trustworthy company will encourage its customers to become familiar with credit repair. The services they provide address issues that require ongoing and thorough monitoring to ensure that errors in your credit report have all been removed.
10. A wrong tip is a red flag! Some agencies will tell you to challenge each derogatory account of your report by saying "this account is not mine". Although the results may be a higher credit score at this time, the creditor whose loan has been challenged may challenge it at a later date and the office will eventually investigate and verify it.
Given the poor record keeping habits of credit bureaus, it is highly likely that not all details of an item in your credit report are accurate. But the credit repair companies that recommend you to declare "this is not my account" if you are certain that this is the case, should not be trusted.
As you can see, there are enough warning signals to prevent possible fraud. Before asking for help from a credit repair company, you need to find out about credit issues, including learning the meaning of the terms "credit report" and "credit score" . You must also know the minimum applicable laws before using any type of credit repair assistance. A good starting point is to consult the FTC's Consumer Affairs Bureau and the Ethical Credit Repair Alliance.