Despite the fact that fast credit fix seem irresistible, you should keep in mind that many companies that repair credit cards will not keep their promise. This has resulted in them earning a bad reputation. You should always remember that you can do anything that they can. Credit repair companies have the potential to save you lots of stress and time, but you will need to calculate whether the cost is worth it or not.
Before you turn to the help of such businesses, a few legal rules must be noted. Doing so will determine the company’s legitimacy. The first rule is that you obtain a copy of the Consumer Credit File Obligations and Rights document before signing any contracts. The second rule is to obtain a written contract which specifically informs you of your obligations and rights. The paperwork must state the total price, a description of whatever services that they promised you, and a time frame for their work.
While these businesses in general are shrouded in controversy, there are a few legit businesses amongst them. If they don’t request an upfront payment, it might be a hint that they are legit. The CROA (Credit Repair Organizations Act) states that these businesses have no right to demand a payment before they complete the services that they promised to do. Another sign of a legit business is one whose employees take care to explain to you your rights and state which of their services you are capable of performing for free on your own. Legit credit fix companies will not recommend for you to get in touch with reporting bureaus.
Also, they won’t advise you to try to rid your report of any negative information, regardless of whether it is correct or not. They also won’t encourage you to debate the information on file, whether it is correct or not.
Furthermore, there are some illegitimate credit repair organizations that have the nerve to encourage their customers to perpetrate fraud. One such way is by asking you to create a new identity through the process of requesting an EIN (Employer Identification Number). Then, they will request your report through the EIN rather than your SSN (Social Security Number). Lying on application and/or supplying false information to receive an EIN is illegal and can result in serious jail time. You will be charged with the crime despite the fact that you committed these actions due to advice of a business’s representative.
Credit fix counseling organizations are a great alternative to consulting with a professional. Despite the fact that many of them are non-profit, they will charge a fee for their service. They will provide you with assistance in regards to budgeting and managing dept, the very reasons you probably ended up requiring their service, initially.