According to the “Credit Repair Organization Act”, it is illegal for credit repair providers to lie about what they will be able to do for you and try to make you pay before they have performed any services. These are red flags to look out for when comparing credit repair service offers. There is the “DIY” approach, but it can be time consuming and complicated depending on how messy your credit reports are.
The ideal company will request copies of your reports from TransUnion, Experian, and Equifax and will review all derogatory marks such as cancellations, bankruptcies, late payments, tax links, etc. Also, did you ever check if you were one of the millions of Americans affected by the Equifax hack? Hurry up and do it if you haven’t already. If some of your personal information is vulnerable to identity thieves, you’ll want a credit repair company with attorneys to help you prove you’re a victim.
The CROA requires that any company you work with explain your rights to you in a written contract, as well as details regarding the services they will perform. No company can make specific promises. If you are not provided with proof that they are doing everything possible to help you, then you have the right to sue them in federal court.
Avoid credit repair scams
Avoid scams by watching for red flags and working only with an organization that has a long-standing, positive reputation. What are some of the strategies a legitimate business will use to help you repair your credit? He will prepare a plan to dispute errors and try to eliminate as many negative elements as possible by using legal methods. The reason it is ideal to work with such a company rather than using the DIY approach is that they know how to negotiate with creditors and will do so on your behalf. Tired of being harassed by nasty debt collectors? Just opt for credit repair services that include sending cease and desist letters to debt collectors.
It may not be a good idea for you to request new accounts to try to have positive information added to your report to make up for the bad, so be wary of any company that tries to do so. If you have had trouble managing your debts in the past, it may not yet be the right time to apply for new lines of credit / loans. Depending on how low your credit score is, you may not even be able to get approved for new credit accounts anyway, and applying for them will negatively impact your credit score anyway due to “soft hits.”
Now that you know how credit repair services can help you, as long as they are honest and legitimate, you can start cleaning up your reports. Just get a free consultation from Lexington Law.