Credit Repair Services
TweetDon't believe everything you hear about Credit Repair Services.
How can I improve my credit score if I already have a credit record? If you already have credit accounts (credit card(s) and/or loans), you will have a credit file and score with the credit bureaus. The following tips will help you answer that question, how can I improve my credit score.
- "Don't pay for credit repair services, you can do everything yourself for free."
- "Companies that offer credit repair services are scams, don't let them take your money."
- "Beware of businesses that offer credit repair services, they are illegal."
Unfortunately, companies that offer credit repair services have been a target for consumer watchdog groups, the government, media and other industries that compete with credit repair services. Consumer watchdogs, like the FTC (Federal Trade Commission) are supposed to look out for consumers by warning them of potential scams. Companies that offer credit repair services are on the FTC scam list. Why? One reason is because there have been highly publicized lawsuits regarding some credit repair companies that engaged in illegal methods, failed to keep promises, and/or violated policies with credit repair services. These lawsuits involved only a few companies but the FTC has decided that all companies that offer credit repair services are guilty of the same accusations.
Aren't there scams in just about every industry? Thousands of homeowners have been taken by contractors who collect a hefty up-front payment and either walk away from an unfinished job or never show up to start it? Why isn't the FTC calling all contractors liars and frauds? Because that would be an unfair generalization.
So why does there continue to be such biased criticism toward companies that offer credit repair services? The answer is either plain ignorance or personal agenda. For the case of ignorance; it is increasingly more common for people to ignorantly spout off about issues on which they have limited information. Misinformation and half-truths are widely circulated on the Web, either intentionally or not, appearing to be legitimate.
As for personal agenda, there are many powerful entities, like credit bureaus and creditors, who detest those that promote credit repair services. Investigating disputes and correcting errors takes time and money away from the bureaus and creditors, it also makes them look fallible (despite what the bureaus want you to believe, they make millions of mistakes - at your expense). Time and again creditors and lenders have to change the status of a listing because they cannot prove its validity making them lose credibility. Of course the bureaus and creditors are going to discredit and attack those who endorse credit repair services.
And, we all know, that powerful lucrative companies tend to have political and media sway. They are able to hire lobbyists who push their agenda. It doesn't take a genius to see why the government is also on the bandwagon against credit repair services, money talks. And what stories get the media attention? Most the time, the ones that people with money and influence want to get the attention. Be prudent about what you read. Make informed decisions and realize there are always two sides to the story.
