Credit Repair Information for Consumers


Chances are good that you have seen the advertisements for credit repair services. They're on TV, in the newspaper and magazines, on the Internet and more. You hear them on the radio and even see them on the side of city buses. Credit repair is big business ? a testament to the fact that so many people have problems with their credit and mounting debt. Are these repair services a good choice for your needs? Can you successfully use a credit repair organization to retake your purchasing power and regain control over your finances?
Actually, there are legitimate services out there. However, you will have to learn how to tell the difference between a legitimate service and one that only seeks to profit from consumers' money problems. What makes a viable credit repair choice? What constitutes a scam? The differences can be quite subtle and you will need to know what to watch for, in order to remain legal and safe.

Yes, there are predatory companies out there promising credit repair for consumers with abysmal credit scores. It is a sad fact, but these companies have been around for a very long time. In many ways, they are similar to credit card companies in that they do not provide all the information consumers need, upfront. However, unlike credit card companies, these organizations can actually land consumers in hot legal water with authorities.

How to Recognize a Scam

A credit repair scam can be hard to recognize. However, if you take the time to look at them closely, you'll find that you begin to differentiate these options from their more reliable brethren pretty quickly. The key to finding a good company is to remember the old adage that if it is too good to be true, it usually is. Therefore, if a company promises they can wipe legitimate debt from your report, don't believe them. If a company recommends you get a new Social Security number or opt to use an EIN instead of a Social Security number, leave them alone.

Following the recommendations of these companies can land you in court, facing criminal charges of fraud. There is no way to remove legitimate debt from your credit report. Therefore, any credit repair company promising that they can is lying about their ability.

How to Find a Good Choice

Finding a credit repair company that is worth its salt might be a bit more time consuming than you think. However, to be a viable choice, the company should provide several things. First, they should tell you upfront that you can do everything they can to improve your credit and consolidate debt. Second, they should inform you of your rights where your credit is concerned. Third, they should provide you with your credit report, as provided by the three major credit bureaus, Equifax, TransUnion and Experian. Finally, they should inform you that you are only able to dispute inaccurate information on your credit report, rather than all of it. If you can find a credit repair company that provides all of this information upfront, you can be on the way to a better credit rating in a very short time.

Other Options Available

You have several options available to help improve your credit score, rather than making use of a credit repair agency. First, you can attempt the repair on your own. Under federal law, you can take all the steps a specialist company can, at no cost to yourself. This can be a more affordable option than making use of a credit repair company, but it does take more time and you also have to contact all of your creditors on your own.

Another option you have is to make use of a payment plan. Obviously, the most important part of repairing your credit is to reduce the number of outstanding debts. However, this can be problematic, as well. You wouldn't have bad credit if you could afford to pay off your outstanding debts in the first place. However, you can make use of specialized lending options to help you do this. Of course, a debt consolidation loan can help here, but these loans can actually hurt as much as they help. In many cases, consumers find themselves paying far more and for a longer time than if they had simply paid the debt on their own.

The best option for repaying your debts is with a cash advance, also known as a payday loan. These loans can help put you on the road to credit repair by paying down your debts a piece at a time. The largest benefit to this is that you are able to avoid the high interest rates of long-term loans, while still paying back your debts and improving your credit score at the same time.