Credit Repair Company Definition

A credit repair company is a company that provides you assistance to bolster your credit rating through various methods such as checking your credit report for accuracy with the credit reporting agencies, settling any credit report dispute as it arises, repairing credit in the wake of bad debts and the like. In other words, this is a company that aids you in managing your finances.

What can a credit repair specialist do?

There are many who advocate a “go it alone” credit restoration method rather than seek help from a trustworthy credit repair company. Is that better? The choice is yours. This is what a credit repair agency should offer you:

- checking the accuracy of information in your credit report as per each credit reporting agency (there are three of them – Experian, TransUnion and Equifax)
- disputing inaccurate information on your report; and following up until they are completely removed from the credit report
- advising you on what are the best methods to adopt so you can raise your credit score within the shortest possible time frame
- counseling you regarding the best ways to manage your finances so you will not fall into debt traps again
- facilitating avenues that will enable you to earn your living again
- keep a close eye on the credit report that each credit bureau maintains to catch any mistake that could hurt your credit score
- showing you the way to maintain a good credit-to-income ratio for best results on your credit score

What can a credit repair firm not do?

There are many people who approach a credit repair company like they would a genie in a magic lamp. But credit repair agencies cannot perform miracles. Here are some things that a credit repair agency can not do:

- settle trade lines disputes overnight – it will take at minimum 60 days
- repair credit reports overnight – it requires at minimum 6 months
- wipe off bad debts – it takes at minimum 6 months
- change facts entered in your credit report – it will remove those which are genuinely errors
- wipe off the history of bankruptcy – it can only help you build a better score as a bankruptcy record will stay on your record for a minimum 7 years
- improve your credit overnight – this is a gradual process and it will take at least 3-6 months

3 warning signs that point to a fraudulent credit repair company

While there are many reputable companies, there are nevertheless lots of scam out there who profit from the gullibility and helplessness of people in financial hardship to make a fast buck. Here are three warning signs that should tell you that the credit repair company is fraudulent:

- they want your money upfront
- unrealistic promises of fast results
- use of devious or illegal means to repair credit

Avoid any such company like the plague! Remember, a bad debt or even bankruptcy can eventually be resolved. But using illegal means to restore bad credit can backfire on you pretty badly. Never be tempted into accepting such “help” because these organizations are not trustworthy and will cause you untold hardship.

 

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