Ready for Credit Repair? Here's a few
word of Caution.
Definition: Credit repair is a process, meant for
mending & fixing up a bad credit report.
Purpose of this article: Applying shortcuts for
repairing your credit will be like playing baseball without a
ball. You just can't repair your credit overnight. It takes a
serious calculation, a personal debt repayment plan and good
advisor. Beware of the companies offering you credit repair in
short time. Check their credibility. This article helps you to
judge a debt consolidation and credit repairing company
better.
Keep these points in mind before choosing a Credit
Repairing Company.
- Collect valid Documents: According to the Credit
Repair Organizations Act, you have the right to collect
written details of the Credit Repair service offer from the
Credit Repair organizations before entering into any
agreement. This is however not applicable for Creditors. The
consumer can however cancel the agreement within three
working days of signing.
- Don't pay in Advance: The Service provider can
demand payment only after providing complete services as per
the agreement. In case of telephonic service, pay the
company only after they have provided you with valid proof
of their services. You can ask for a copy of your Credit
Report issued by an established Credit Bureau and shows
signs of Credit Repair and looks healthy.
- Removal of accurate negative information is
impossible: Correct & authentic negative information
forms a very crucial part of your Credit Report & cannot
be removed with money. Don't believe in the false promises
of Credit Repair companies. Credit Reports can be cleared of
negative information only if they are incorrect &
wrongly placed. Accurate negative information stays in your
Credit Report for 7 - 10 years. Always keep in mind that
Promises to remove correct negative information from Credit
Report against a fees is absolutely illegal & thus
impossible.
- Creating a Second Credit File is impossible:
Often you must have come across Credit Repair Companies
or individuals offering to create a second credit file using
a tax-id number or a second social security number. They
promote this service by promising that this will help you in
getting Credit. This service is alternatively known as "file
segregation" and is completely illegal. Anyone opting for
this service could be subject to serious penalties.
Do it yourself: If you find any discrepancies in
your credit report, contact the major credit reporting
agencies to know how you can correct it yourself. You can also
take help from the information on credit history self-help and
how to avoid scams, published by FTC. Both the services come
free of cost & are very simple to use. In case you have
accurate negative information in your Credit Report, it is
better to attach explanations for non payment in your Credit
File. This may convince the Creditors to issue loans to you in
the future.