I have heard the success stories from who were able to save thousands and buy new homes with lower interest rates. I have also seen the extreme tragedy of people who did not pick a credible service and ended up paying much more than the cheap fees they charged.
So how do you decide which company to use or do it yourself? How do know which companies are honest and which ones are not. Do you need a law firm such as Lexington Law or company such as Veracity? With the myriad of options, claims and forged testimonials, it is difficult to know who you can trust.
I want to help you make the right choice when selecting a credit report repair company and help you avoid getting ripped off!
See my recommended credit repair company.
Truth 1: Credit Repair is Legal.
Although the credit bureaus would like you to think otherwise, there is absolutely nothing illegal about disputing items on your credit report. In fact, it is your explicit right to do so. (See Fair Credit Reporting Act.) Credit report repair is as legal as pleading "not guilty" in a court of law.
Credit Repair is legal and is Your Right Under the Law!
Truth 2: You Can Repair Your Own Credit.
You can also change your own oil in your car, build your own house, cut your own hair and do your own taxes but chances are you don't. Why? Because experts can do it faster and better than you can. The same is true regarding Credit Repair. However, hiring the right company is crucial. Not all credit repair companies are equal and not all companies are honest. I am sure you have seen the companies Ovation, Fowler and Fowler, Lexington Law Firm, and DSI Solutions. So how do you choose the right company?
Choose the Right Company!
Truth 3: Credit Repair is More than Removing Negative Items from Your Credit Report.
Credit Repair implies credit improvement. The primary gauge of your credit improvement is your credit score, one little number that can literally save you--or cost you--thousands of dollars in interest payments. Most Credit Repair companies only focus on Credit Report Repair, which means they merely remove negative items from your credit report. These companies fail to help you create an overall credit improvement strategy--a strategy that can save you thousands of dollars.
Example: I have seen many people improve their credit score and save hundreds of dollars on their monthly mortgage payment. Over a 30-year period, this adds up to savings of hundreds of thousands of dollars!
Choose a company that will help you focus on overall credit improvement!
“I used… to repair my credit. They were very successful at removing negative items from my credit report. Unfortunately, many of those items came right back on my report when I went to apply for a mortgage. I wish that I had found your site before wasting all that time and money and losing out on the house that we really wanted.”
- M.R., Dallas, Texas
Truth 4: It is Illegal For Credit Repair Companies to Charge in Advance for Services.
Any Credit Repair Company that charges large fees before it completes its work is in violation of the federal CROA (Credit Repair Organizations Act). Credit Repair Companies can only charge a reasonable set-up fee and a monthly fee after its work is finished.
Choose a company that follows the law and only charges after services are complete!
Truth 5: It is Illegal for Credit Repair Companies to Make Any Guarantee of Service.
Many Credit Repair Companies will make service guarantees such as, "we'll raise your credit score 150 points in 45 days, guaranteed." This type of performance guarantee is strictly forbidden under the CROA laws. Although, the claims may be accurate, I have found that these companies either misunderstand the law or intentionally break it. Either way, this could be very bad for you.
Choose a company that follows all of the laws and is committed to keeping you out of trouble.
Truth 6: Real Credit Repair Takes Time.
The credit bureaus would have you believe that it takes seven to ten years for negative items to be removed from your credit report. Some shady companies promise to clean up your credit in days. The truth is that real and lasting Credit Repair is not an overnight miracle; nor is it a multi-year process. A good Credit Repair company can have you back on track in as little as three to nine months. However, the longer you are affiliated with a good company, the more improvements you should see.
As you consistently improve your credit rating, you also increase your ability to land the best rates on both big and small purchases. People have literally saved thousands of dollars by sticking with a reputable company over a relatively short-time period.
Choose a company that will provide lasting credit repair, not an overnight miracle that may cause you more problems!
"Thank you, thank you, thank you! I have been able to improve my credit score and literally save over a hundred thousand dollars in additional interest on my home loan."
- Lee.H., San Fran.CA
Finally, I recommend the following check list for choosing the right company and avoiding rip offs!
The company must be a member in good standing of the better business bureau (BBB) in good standing. Check the number of complaints compared to the number of clients.
The company should follow the law completely so you avoid legal problems. I recommend using a law firm the focuses on credit issues.
The company should have an established track record. Ask the BBB how long the company has been in business and how many members they have.
The company should do more than just repair your credit report. They should also work with your creditors and provide counseling for overall credit improvement.
Don't get ripped off!!!
See my recommended credit repair company.
