Are Credit Repair Companies Legit?

Are Credit Repair Companies Legit? And How To Find a Legit Service

Do you want to know the answer to are credit repair companies legit?

Firstly, offers of a quick fix can be quite enticing.

But too many credit repair companies promise this in their advertising, not being able to fulfill the bargain.

As a result, many have earned a bad name.

Despite this, please keep in mind that there are legitimate credit repair companies who can really help you to improve your finances.

First of all, anything they can do, you can do as well.

Yet, they can save you a great deal of time and stress.

However, it’s your choice to find out whether the financial cost is well worth the time and stress savings.

If you choose to use one of those companies, there are a few legal technicalities of which you want to be aware.

These will also enable you to determine whether the business is legitimate.

Before You Sign Contracts

First, you must be provided with a copy of this “Consumer Credit File Rights and Obligations” before signing a contract.

Further, they need to give you a written contract which specifically states your rights and duties so that you have the answer to are credit repair companies legit.

This includes the charges and total price, a comprehensive description of the services they’ve promised to provide

As well as, the time frame in which they will work to achieve these outcomes.

Performing Background Checks

While the profession has earned a bad name, there are legitimate companies out there.

One way you can tell if they’re legitimate is that they will never request you to pay for their services up front.

The Credit Repair Organizations Act (CROA) states that they are not permitted to require payment before the completion of the services they’ve promised.

Additionally, they will clearly outline your rights, as well as inform you of the services that they provide that you can do for free on your own.

Moreover, they will never recommend that you don’t contact any of the reporting agencies directly.

Additionally, they also will never tell you that they can get rid of all the negative information in your document, even if it’s correct, or advise you to dispute all the information in your document.

Instead, usually what they can do is make several adjustments and improvements.

How to Avoid Mistakes

Note that, some organizations that aren’t valid are even going so far as to ask their customers to commit fraud.

They’ll advise you to invent a new financial identity by asking an Employer Identification Number (EIN).

They’ll then have you request your report using the EIN, instead of your Social Security Number.

Make sure that you avoid these mistakes.

This is illegal because it’s a federal crime to lie on an application and to get an EIN under pretenses.

You can be prosecuted even though you were advised to complete these activities by a representative of the enterprise.

Conclusion

If you choose not to use a professional, you might want to consider a credit counseling organization instead.

Many are non-profit, but may still charge for their services.

They can provide counseling concerning managing your debt, as well as budgeting, the very things which have probably led you to need their services.

So now that you have a fuller answer to are credit repair companies legit the decision is up to you to make the next step.