Home > Credit Repair > Credit Repair Companies: Promises Are Made To Be Broken
Credit Repair Companies: Promises Are Made To Be Broken |
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Credit repair is a good idea if you are
suffering from the problem of bad credit. But it is better to undertake the
credit repair on your own, rather than go to some credit repair company. And that's not just because of the scams that are mushrooming all over the place. The credit repair companies usually promise you much more than they can really accomplish. And there is nothing they can do that you cannot do on your own. You need to be especially skeptical of the bombastic promises that they make like "fabulous result for a fee," and so on and so forth. Most of the times the changes they effect in your credit report are temporary and are likely to resurface soon. The promises of credit repair companies about removing information from your credit report are a little problematic and not really true. It is not possible to remove any timely and accurate information from your credit report. If somehow they do manage to do it, it is only temporary. And you incur additional risk by hiring the help of credit repair companies, since you will share confidential information with them. That might expose you to the risk of identity theft, unwanted e-mails and direct mailings. It is important for you to protect yourself from such hazards. All confidential information should be kept confidential. Besides, it is your right to deal with your financial affairs without any external intrusions. And you should not lose that right to some bogus credit repair company. Also, the job of a credit repair counselor is to help ease your debs and not really rework your credit. You cannot blindly trust such a company to pay your creditors on time: something you can do yourself with a little caution and determination. They would take a check from you every month to supposedly pay your creditors, but often enough they would fall behind on the payments and your credit history would be checkered with 30 days late remarks. This would further worsen your credit rating. Moreover, an untrustworthy credit repair advisor might well put you on the road to credit ruin. A supposedly non-profit credit repair service could spell all loss for you. They can advise a gullible customer not to pay his credit bills at all, thus ruining whatever little chance he had of credit repair. And that's on top of all the maintenance, upfront, and monthly fees that they normally charge. The fees are supposed to go towards a trust account. And then, after a considerable duration the negotiators persuade the creditors to settle for a lesser account. That would render your account an "uncollectible' one. Besides wrecking your credit with countless "late" remarks and collection notations, it would also render pointless the money thus saved. The IRS would deem the difference as income as it was actually the money you owed. Usually credit repair companies claim to solve all your credit problems. They would make the disputation on your behalf asking for the disputed information to be removed. That piece of information would disappear from your credit report while the investigation is on. For a while your credit report would look squeaky clean. But the disputed items will crop up again as soon as you have paid off the company. The company only flatters to deceive, so to speak. You need to keep in mind that only the inaccurate items are removable from your credit report and that too on a successful disputation. Notwithstanding the tall claims of the credit repair companies, if the black marks on your credit report are found to be accurate, they are virtually irremovable, unless you do away with the very cause for the black mark. A few credit repair companies can genuinely help you to some extent, as far as the actually inaccurate items are concerned. But the trick here is to go only for a reputed credit repair company. Otherwise there is always a risk of the company doing a vanishing trick on you if you pay them an up front fee, which incidentally is illegal. All said and done, it is a better to do your credit repair on your own. |
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