Credit Repair Companies: What to Expect

When 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.

2) Credit repair companies will need you to tell them what to dispute.

The Fair Credit Reporting Act gives you the right to dispute anything in your credit report that you feel is inaccurate for any number of reasons. Credit repair companies act on your behalf to dispute these items are are required by law to only dispute the items that you feel should be disputed. Be wary of credit repair companies that simply dispute all of the negative items on your credit reports.

3) Credit repair companies will need time to perform their work.

Repairing your credit is not an overnight process. Depending on your credit reports, achieving your credit goals could take up to a year. There are a few reason for this, but one of the key reasons is because it rarely works to simply send in all of your disputes at once. Legal or not, the credit bureaus will quickly dismiss your disputes if you dispute too many negative items at once which leaves you back at square one. Experienced credit repair companies know this and will be careful not to dispute too aggressively.

4) Credit repair is never a sure thing.

There are no guarantees when it comes to repairing your credit and increasing your credit score. Ultimately, it is up to the credit bureaus and your creditors to decide whether or not negative listings will be removed from your credit reports. Credit repair companies should put forth a best effort in working to repair your credit, but sometimes there is only so much that can be done. Credit repair works for a large majority of the population, but you should be aware of the possibility that your credit will remain unchanged.

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