The credit repair industry gained success over the years. Many people need credit repair services, making it one of the best businesses. Because of the success of this industry, others use it in an illegal way. Without a doubt , you should stay out of sight of scammers. More importantly, your safety and security must be prioritized. In this article, learn what you should know about legit credit repair companies.
What is a Legit Credit Repair Company?
A credit repair company helps people with poor credit scores. They improve or fix their credit information in exchange for a fee. If you’re planning about getting an expert’s help, here are a few things to look into:
1. They assure to include you in the process. Example, you have the right to retain an explanation on your credit report. They must include your statement whenever your credit report is submitted.
In addition, you have credit reporting rights according to the law. You are entitled to a 100-word explanation.
2. Understanding the terms and conditions. Cearly, it’s crucial to know what you agreed to completely. Before signing a contract with a credit repair company, read ther terms stated.
3. Agreement Cancellation. If you decide to cancel your agreement, what are the terms? Moreover, do you have liability for all the charges? Make sure you are aware of your cancellation rights.
Credit Repair Service Packages
The best companies should offer various credit repair packages, depending on the degree of fixing your account need. For example, some offer unlimited monthly disputes, while others present credit monitoring, as well as identity theft security.
When comparing legit credit repair companies, you should check if they include the following: credit repair service packages offered, monthly fees, whether the company will consist of a credit monitoring service, and the number of credit disputes every month.
Credit Repair Service Benefits
Credit repair professionals have the expertise to improve the credit score. In particular, these are the ones you can’t resolve on your own. In particular, they can help you review, understand, and find errors to fix your credit score. Also, they guide you to avoid repeating the same mistakes. Each company has its strategy of improving your credit score.
To give you a glimpse of how they fix your credit record, here are the steps they do:
Firstly, they assess your credit accounts. When analyzing your credit reports, they usually check for credit report errors. Here’s a list of common issues found:
• Identical Loan Accounts. Meaning that your credit account was recorded by the bureau multiple times. This causes two different versions. An inaccuracy like this isn’t good for you. Why? because it gives you more credit than you initially have.
• Other people’s debts that are added to your record. You will see accounts already behind payment. Accounts you are unaware of it because you did not apply for it.
• Account’s Inaccurate Data. An example of this is miswritten names that have negative information. Names like this may mix with yours, which will end up pulling your history to the negative side. Another instances are positive entries not seen or added in your account.
• Hard Inquiries. It occurs when you try to get a new credit or loan. The creditor will check your credit report to verify that you’re not a credit risk. Looking into your records can also be a sign of fraud, so be careful.
Secondly, credit repair companies find all the discrepancies, it’s time to send a dispute. It is a request to review and verify the errors by the credit bureau. If the credit bureau cannot verify the misinformation, they will need to remove or correct them.
Credit repair VS Credit Counseling
Both are helpful approaches to improve your credit score. On the other hand, they have a considerable difference from each other.
In credit counseling, a comprehensive method of studying your expenses, income sources, and total debts is made. They suggest handling your finances wisely, a vital practice to getting out of debt and sustaining a great credit score.
On the contrary, credit repair’s only concern is boosting your credit report. You hire a specialist to inspect your credit report for false or inaccurate information. If legit credit repair companies find anything wrong, they’ll notify the credit bureaus to check it.
Recognize Credit Repair Scams
There are multiple ways to ensure the legitimacy of the credit repair institution you want to work with, such as:
· Recommendations. If you have a friend, relative, or just someone you know, who has their credit score fixed, you can ask their advice.
· Online Research. Utilize the internet. You can find a list of trusted and best credit repair companies near you.
· Feedbacks. Most businesses today have a website to reach more clients. You will also see the reviews of other clients they have worked with since the company started.
· Free Consultation Offers. Inquiring through a free consultation to know more about what the company can do for you. Ask the right questions that will justify their credibility.
· Survey. You can conduct a survey or poll online. It will have a broader range; even people you don’t personally know can share answers, and also insights.
The Credit Repair “Red Flags”
The following are some traits of an illegitimate credit repair institution to look out for:
- They are hesitant to supply details. The company must inform you of your consumer rights, such as your right to terminate the contract within three days.
- Misguiding Response. Answers that do not convey what you need to know. Response differently or dodging questions about payment and services might indicate that the company is illegitimate.
- Instructs you to fabricate information. Legitimate credit repair people will never ask you to fabricate some of your info or misrepresent yourself.
- They instruct not to connect with Credit Bureaus. One significant step in fixing your credit score is to submit the errors found on your record to the bureau. If the company suggests not to have any communication with the credit bureau, be suspicious.
- Too good to be true promises. Examples of this are: reassuring you to fix your record for a short time, and they can remove negative records even if it is correct. Credit record fixing takes months, depending on the longevity of the history. Moreover, they don’t have the right to remove accurate information.
When meeting with them, do not turn a blind eye to these notable characteristics. Furthermore, always be alert and observant of your surroundings.
How can Credit Monitoring help you?
Checking your credit report is good, but monitoring it is better to maintain a good credit score. Monitoring your personal finance keeps you updated on every changes added to your file. Getting notified of new accounts and negative information such as late payments helps you keep track.
All alerts will be sent to you. This can save you from not only identity theft, but also other crimes the thief may conduct. The imposter may use your information like Social Insurance Number, Name, or Credit Card Number to apply for loans, apartment rental, open a bank account, and even another credit card.
Know your Consumer Rights
A poor credit score gives us a disadvantage in life. Getting approval for a car loan, home loan, or any loan is troublesome. When a person is in a desperate situation, it makes him blind to suspicious acts. This can lead to being scammed.
Awareness of your rights is your primary advantage against con artists. The Ministry of Government and Consumer Services in Ontario bring forth the following rights:
1. It is illegal for a credit fixer to claim that they can cause material improvements without assessing the client’s credit report.
2. The credit fixer must explain a written and dated contract. In addition to this, the fixer must give a copy to the client.
3. The client has a ceasefire agreement period. The cooling-off period has 10 days. It starts when the company hands an agreement copy to the client. The consumer might sue a company if they fail to repay the money.
4. Erroneous claims or False affirmations are illegal. No credit repair company can change or erase negative items on your report. Despite of it’s negative effect, it is still an accurate information.
Note: You can get a free credit report from the major credit bureaus like TransUnion, Equifax & Experian .
Is Hiring Credit Repair Companies WORTH IT?
YES. Unlike credit counseling, credit repair services are not free. But, it is worth it to let the professionals handle the problem. It’s most helpful for people with many negative items influencing their scores. Legit credit repair companies will particularly take charge on of all the analysis, discussions, and disputes for you.
Collections agencies are well-known for being intimidating. Many people afraid not used to negotiating on the phone. Having a pro to do it can not only relieve the stress, but also save you hours each month.
We are specialists in mortgages and in credit score repair for 9 years running. Our office is located in Canada and is founded by Faizal Garasia, an expert in credit and mortgage matters.
Feel free to phone +1 647-373-9651 or send an email to firstname.lastname@example.org to learn more.
Need to fix your credit score? Book your FREE consultation with CREDIT REPAIR NOW!