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How Do Credit Repair Companies Work?

On any given day, having good credit is always better than having bad credit. Good and bad credit can mean the difference between being able to purchase your dream home, finance your vehicle, or even starting a business. If you have bad credit, then good luck being able to do any of these things without having to rob a bank first.

If you’re struggling with bad credit, then you may require help. Perhaps you’ve been considering hiring a credit repair company to provide some guidance or eradicate the negative information on your credit reports.

Well, if you’re in the market for a good credit repair company, then you might want to be aware of the potential dangers. Not all credit repair companies are the same. Some are honest and forthcoming, but others are total scams. Let’s take a quick look as to what a credit repair company is, what they do, and how to avoid credit repair scams.

What is a Credit Repair Company?

A credit repair company is an organization that offers credit repair services to improve your credit scores in exchange for a service fee. Many people hire credit repair companies to dispute errors on their credit reports and to increase their credit score.

What Does A Credit Repair Company Do?

A credit repair company does what you can’t do for yourself. They request your credit report from each of the three major credit bureaus – Equifax, Experian, and Transunion. They identify all of the negative items from your credit reports and have these negative items removed after they’ve filed a dispute.

Credit bureaus can take as long as 30 days before settling your credit report dispute. Fortunately for those who are trying to repair their credit, the credit repair companies do everything for you so that you don’t have to endure the lengthy process.

Along with doing everything for you, credit repair companies provide guidance and support in helping you to prevent from making mistakes in the future. They assign guidelines and rules on how you should proceed with building your credit after services are complete. They offer advice on when you should use certain credit cards so that you can avoid penalties or more negative information to appear on your credit report.

As long as you have a credit history and have negative items on your credit reports, then they will repair them.

How To Avoid Credit Repair Scams

There are millions of Americans that need to repair their credit. Because of this high demand in credit repair services, many credit repair companies have risen out of the woodwork to “save the day.” However, when repairing your credit through a credit repair company, you want to make sure that you do your homework.

Our credit report is your financial reputation, and you should place the fate of that reputation into trusted hands. It’s a shame when someone falls victim to disappointment when they hire a credit repair company that doesn’t help them.

These individuals spend their hard-earned money. They also invest their time, energy, and hope into a credit repair company that either doesn’t know what they’re doing or is simply lazy.

Many times, credit repair companies work extra slowly through the process because they want to bill you monthly. So they’re milking the cow as much as they can before you start to see results.

To help put an end to credit repair scams, the Credit Repair Organizations Act (CROA) protects consumers from credit repair companies that charge money and falsely promise to repair credit. They promise to remove negative items on your credit reports and dramatically improve low credit scores based on falsified information.

So, a distinct red flag to look out for when hiring a credit repair company, promises mean disappointment. No one can promise you a positive result in a specific period. Don’t take the “money-back guarantees” spiel to heart, as it could very well be a flat out lie.

No one can get you positive results on your credit rating faster than it takes for the credit bureaus to come back with a verdict. It’s also important to know that repairing your credit doesn’t mean the same thing as consolidating your debt. It’s strictly about using legal methods to clean up your consumer credit report.

So when it’s finally time to repair your credit once and for all, turn to a company that you can trust.

The Credit Repair Team has all of the tools and resources needed to help you repair your credit and get on track towards gaining financial freedom. Contact us for a free evaluation today.


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