Ugly Truths About Credit Repair Companies

Many consumers are having financial troubles and are seeing poor or horrible credit scores because of it.

We are bombarded daily with ads claiming to solve all our credit problems. You may be wondering how to repair your credit. How can I find a reputable repair company to help me? Should I hire a repair company?

I will shed some light on a few vital things to know before you consider hiring a credit repair clinic and will expose some ugly truths about many credit repair companies (credit clinics).

The Federal Trade Commission has reported that credit protection and repair scams are one of the top consumer complaints. They have reported consumers have lost millions of dollars as a result of hiring credit clinics.

Suze Orman’s book, The Road To Wealth, states credit repair clinics should be avoided at all costs.

Run away fast if any of these methods are used…

If they don’t tell you what your legal rights are and let you know what you can do legally for free.

If they recommend you do not contact the credit bureaus yourself.

Run away if they ask for a fee upfront before providing you their service.

Some Repair companies will offer you a loan. This may be very enticing but the interest rates are most likely outrageous and other terms of the loan can cause you more financial trouble.

Some of the standard methods Credit clinics use, are forms called “boiler plate dispute letters”. Many of these standard dispute letters can actually raise red flags with the credit bureaus. The credit bureaus are bombarded with these same boiler plate letters and won’t take them seriously. Of course if this happens this will cause you more harm then good.

They will take you more serious if you write your own letter in your own words.

Flee quickly if they advise you to dispute everything. Many repair clinics will advise you to dispute practically everything on your credit report. Some will go to the extent of having you make false statements about your personal information such as your social security number or address.

No one can erase negative information if it’s accurate. Only incorrect information can be removed. It won’t help you at all to dispute items on your credit report that are legitimate.

I will say it is very common to have incorrect information on credit reports.

Some Companies will recommend you create an alternative credit file using a false social security number, claiming you can build a good credit history. They say this is legal but it is not. It is a felony.

Many of these types of companies will make it seem like it is too difficult for the average person to know the techniques and procedures to repair poor credit scores. These techniques are not difficult.

Federal Trade Commission says repair clinics can’t do anything that you can’t do yourself at little or no cost.

Knowing your consumer protection rights and knowing how to communicate with the bureaus and creditors will help you get you the results you want to raise your credit score.

3 ways to start…

1. Get a free credit report and see what’s on there. You can go to

http://www.AnnualCreditReport.com

1. If you have inaccurate information on your credit report. Write an explanation in you own words. Be short and simple. Make sure you include your account information and your personal information on the letter. Remember to be polite. Some of these mistakes can be so frustrating but being rude and demanding won’t give you the results you’re wanting.

1. If you are having trouble making payments on your credit cards, let your creditors know you are having financial difficulties. Tell them you want work out a payment plan. Ask them to reduce the interest rate. Many of them would rather work with you then not get paid at all.

To learn more about improving your credit score take advantage of Our FREE Credit Secrets Mini book. Link below