How To Spot Credit Repair Scams

Credit repair is a growing field and can be very confusing for the average consumer. A credit report is one of the most important documents for making purchases. The better your credit rating the easier it will be to secure loans and other forms of credit. It is important to repair your credit in order to improve your credit score, which in turn helps you qualify for lower interest rates on future loans. A well done credit repair program can increase your credit score significantly and help you make smart financial decisions.

Unfortunately, most people do not know how to obtain a copy of their credit report. Most companies only allow you to obtain a copy of your credit report through one of the three major credit reporting agencies (Equifax, Experian, or TransUnion). Credit repair service software allows consumers to easily correct inaccurate information and fix errors on their credit report. Consumers looking for a good credit rating should consider using a reputable credit repair service that can give them the tools they need to improve their rating.

Credit repair is divided into three basic methods – dispute, counter-claim and negotiation. A dispute is the most basic method of credit repair and look at this site is generally used by consumers with little experience. A consumer sends the company’s records detailing an inaccurate negative item to the credit bureaus. If the company can prove the item is inaccurate, it must remove the listing. This is where a credit repair service comes in handy – they have the ability to research the companies that send them documents, and when enough evidence is found to support a dispute, they make sure the listing is removed from the credit reports.

Once a dispute has been made, another step is usually required in the form of counter-claims. If the original creditor cannot prove the negative item is incorrect, a counter-claim must be filed. If the counter-claim is denied, then a new complaint must be filed with the credit bureaus. Credit repair companies can help here by sending the credit bureaus a letter refuting the denial and offering proof the item is inaccurate.

Negotiation is probably the most common method of dispute and it involves both parties. When it comes to repair companies, this step is often where the scam artists run out of time. Before entering into negotiations, there are a few things to look out for. Any reputable company will not take any fee up front unless they are successful in obtaining all of the credit card companies to agree to the removal of the negative item. Scams prey on those who are desperate, so be careful if you decide to try negotiating with them. If the company you are working with takes money up front, they are probably running a scam.

Credit repair is necessary regardless of what type of credit repair is being done. The economy is bad enough as it is, and having bad credit will only make things worse. Debt consolidation loans and debt settlement are other methods of debt relief available to those in need. Debt management companies are another option, which allow you to pay your debt off in a reasonable amount of time without using your credit cards or taking out loans. Regardless of what method you choose, sticking to your plan and repairing your credit will help you out in the long term.

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