Bad Credit Repair Companies
TweetHow do I Spot Bad Credit Repair Companies?
If you type the words bad credit repair companies into a search engine what will pop up? Tips on how to repair your bad credit? Or perhaps credit repair companies that are bad? Maybe a little of both. This article will address bad credit repair companies; or at least those that you should be cautious of when you are looking to hire a company to help you repair your bad credit. The following are some things to be aware of:
Bad credit repair companies give faulty claims on how long the process will take. There are some credit repair companies that claim they can repair your bad credit in 24 hours. Do not fall for it. This illegal practice establishes a brand new credit file by using an EIN (Employer Identification Number) instead of an SSN (Social Security Number), if you're caught, you could be indicted for fraud.
Then there are some companies who promise a clean report within days. The method they use isn't illegal, just temporary. They request an investigation on every negative item on your credit report, because the law states while any item on your credit report is under investigation it can't be listed. With the negative items deleted, your credit score improves dramatically. Unless negative items are challenged properly and systematically, they will only reappear.
Other companies claim that their average client "turn-around" is 3 months. This doesn't mean that results were seen in three months, it means that the average client cancelled in three months due to unsatisfactory service. In most cases it takes 6-12 months, to get a credit report in top notch condition, sometimes a bit longer.
Bad credit repair companies charge for services before any work is completed. Be careful of companies that require a lump-sum or partial payment up-front for services. In the credit repair industry, it is illegal to charge for services that have not yet been completed. Reputable companies charge a service fee for the previous month's work. This is not to be confused with a set-up fee, which can be charged up-front and is perfectly legal.
Bad credit repair companies offer faulty guarantees. Some credit repair companies guarantee the removal of all bad credit and that they can get anything deleted. No one can guarantee these results. Legitimate companies would make no such claims. Some companies may also offer a "full money-back" guarantee. Read the fine print. That being said, many reputable companies will offer a warranty that allows for a refund upon unsatisfactory service and/or results. Usually how this works is once you have been a client for a certain amount to time (you need to give the credit repair process enough time to work) but are not satisfied with the results, you are entitled to a refund of your monthly service fees minus a specified dollar amount for each deletion that was made.
