Docstoc

What to Look For In a Credit Repair Company

Document Sample
What to Look For In a Credit Repair Company Powered By Docstoc
					When you need to fix your credit, knowing the difference between legitimate credit
repair companies and scams can help you save your time, money, and most important,
your credit rating.
  Say you 鈥檝 e just obtained a copy of your credit report. You open it only to
discover you don 鈥檛 have a clue what 鈥檚 going on in there. Not only is your
score lower than you thought it was but the report itself is filled with terms and
acronyms that make little to no sense at all. It 鈥檚 like they deliberately try to make
things as complex as possible, presenting a riddle with absolutely no clues to help you
solve it.
  So where are you to turn? Well, the obvious answer is one of those credit repair
companies you keep seeing online. But there 鈥檚 so many of them, and a lot of them
are just scams anyway, right? How do you keep up with the people who say they 鈥檙
e trying to help you back up? In short, how can you tell the good from the bad (and
the ugly)?
  You 鈥檙 e gonna like the way your credit looks 鈥?I guarantee it!
  Speaking of guarantees, you 鈥檒 l want to especially shy away from any company
that promises to wipe out all of your bad credit at the drop of a dime. No one can
guarantee you results when it comes to credit repair, no matter what a bunch of dots
on a map or front page testimonials may say. Just because they all claim to be the
#1-rated company in the business doesn 鈥檛 mean they really are. Remember, we
already established those reviews are bogus to begin with.
  And while most reputable companies won 鈥檛 make this claim, anyone saying they
can completely wipe out your bad credit in a matter of days is outright lying. Credit
repair can take months to work through, not days or even hours. Stay away from
anyone who makes any promises beyond what they can legally accomplish.
  鈥淲 e didn 鈥檛 see nothin 鈥?if you didn 鈥檛鈥?
  Another general rule of thumb when it comes to dealing with credit repair companies
is to gauge the emphasis they put on dispute letters. Unless you keep meticulous
records, chances are a couple of items on your report won 鈥檛 look familiar at all, so
a credit repair company may be quick to suggest this as your first order of business for
fixing your credit.
  What some may not tell you though, is that disputing your trade lines is hardly the
best way to repairing your credit. The credit bureaus may take some of these accounts
off your report, but they could show up again in a few months time, and you 鈥檒 l be
right back to where you started. Except this time, your wallet may a bit lighter from
those monthly fees the credit repair companies are hitting you with.
  Make 鈥榚 m an offer they can 鈥檛 refuse
  A good way to avoid this type of runaround is to familiarize yourself with your state
鈥檚 SOL (statute of limitations, not the other type of SOL), i.e., how long the
original creditor has to collect on a particular account. Federal SOL is 7 years from
the date of last activity on the account. However, each state 鈥檚 SOL varies
depending on the type of account (oral/written agreements, promissory notes, and
open-ended accounts), with some lasting for only 2 years, while others follow you for
10 years.
 So instead of allowing them to randomly send dispute letters to every negative
account on your report (which is like throwing darts at a board, blind-folded)
familiarize yourself with your state 鈥檚 SOL and be prepared to work out payment
plans with the creditors themselves.
 Going all the way
 Finally, while credit repair alone is a great thing to have, there are some companies
that offer more than just putting a band aid on your credit history and calling it a day.
Any credit repair company that offers debt relief services is worth looking into as well.
Bad credit doesn 鈥檛 happen overnight, and it won 鈥檛 go away the next morning.
Make sure you are able to work out payment plans with both the creditor and the debt
settlement specialists so you can work towards reducing negative accounts within
your means.
 Keep an eye on your accounts, and anyone eyeing them for you, and within a few
months time, your report will look cleaner, and you will have learned something too.

				
DOCUMENT INFO