Consumer Credit Repair - Do they Really Work | SmartGuy

Consumer Credit Repair - Do they Really Work

Credit Repair

There are credit repair organizations, or CROs, that repair your credit score. Some people are skeptical about these CROs, but the simple fact is that consumer credit repair does work. There are a few CROs that spoil the name of the industry by promising more than they can offer. If you get a consumer credit repair agency that abides by the rules and regulations detailed by the 1996 Credit Repair Organizations Act or CROA, you will be sure that the repair will work. You will get what is referred to as "Consumer Credit File Rights under State and Federal Law" before signing a contract and you will get a written contract spelling out what you are obliged to do and your rights. If you read this document carefully, you will be sure that the agency you go for is credible and reliable.

You will be sure you have a credible and reliable credit repair agency if you avoid those that advertise themselves with such claims as "Do you have credit problems? No problem!" and "Come to us to legally create a new credit identity." Avoid companies that have ads on TV and in newspapers, those that advertise on radio and on the Internet, those that send out fliers, and those who spam your inbox since they are likely to be fraudulent and unscrupulous.

The company will write to creditors with copies of documents that support the fact that you have disputed certain items in your credit report. If the information in the report is indeed accurate, there is little that can be done and you should avoid consumer credit repair companies that promise heaven. A good company will, however, give you tips on how you can maneuver around the bad credit score such as where you can borrow money (like payday loan companies) if you have a bad credit score.

Federal Trade Commission enforces CROA. The FTC requires these agencies to explain any guarantees that they may have, the total cost payable, the time it will take for you to get results, and your 3 day rights to cancel the agreement (with no charge).

Avoid consumer credit repair companies that advise you to misrepresent your Social Security number and that wants to remove accurate negative items or to add false items on your credit report. You should read posts in discussion forums and independent reviews for an overview of credible and reliable credit repair companies.

You find out your credit score by going through a credit report. Under the law, you are entitled to get a credit report free of charge should a lender, an employer, an insurance company, or any other company take ;adverse action against you, claiming that you have a bad credit score. You will get the credit report within 60 days following the adverse action. If you are searching for a job, you are entitled to one credit report each year. You are also entitled to a free report if you suspect fraud has made your credit score inaccurate (such as identity theft) and if you are on welfare. You apply for the report from one of the 3 national consumer reporting agencies namely TransUnion, Experian, and Equifax.

A consumer credit repair agency will report help you get negative information from your credit report in the shortest time possible, keeping in mind that it takes 7 years for accurate negative information to disappear. On the same breath, the agency will help you fight for action if you can do so, keeping in mind that it takes 10 years for bankruptcy information to disappear from your credit report.