Credit Repair Companies: What to ExpectWhen signing up with a credit repair company, many people do not know what to expect. This is a likely reason why some people have poor experiences working with credit repair organizations. By setting unfair expectations on credit repair companies and not understanding their role in the process, these people set themselves and the credit repair company up for failure.
Before signing up with any credit repair company, make sure you have a complete understanding of how their process works and what you will need to do in order to facilitate them providing the best possible results.
Listed below are four facts you need to be aware of when it comes to working with credit repair companies, but this is by no means an exhaustive list. We also suggest that you thoroughly investigate any credit repair company before handing over your credit card.
1) Credit repair companies will need a copy of your credit reports.As would be the case if you were repairing your own credit, in order to dispute the negative information contained within your credit reports, a credit repair company will need to know what information your reports contain. Because credit repair companies are not permitted to order credit reports (see the Permissible Purposes section of the Fair Credit Reporting Act), you will need to help them with this process.
If you already have a current copy of your credit reports, a credit repair company will usually allow you to mail it to them or otherwise provide them with access to the information. If you do not have a current copy, most credit repair companies will be happy to help you order one.
Watch out for companies that include ordering your credit repost as a part of their credit repair services. In many cases, these companies are using third party loan officers or other financial partners to order your report under false pretenses. Not only is this illegal, but can also lower your credit score.