Understand Credit Repair So You Won’t Be Cheated

credit card debtThere are many credit repair companions today claiming eternal protection from bankruptcies, judgments, liens, and bad loans from your credit file. They even assert the dubious erasure of bad credit from one’s finances. But don’t you be fooled by these claims! More often than not, they are mere sickly sweet promises that ensnare the unknowing naive clients in traps of money scams.

To avoid the trouble of falling victim to abusive and illegitimate credit repair companies, know the semantics and pragmatics of credit repair systems. You certainly do not want to be the one to go home unhappily empty-handed, indeed.

Credit repair organizations provide solutions to remove negative information from your credit report. This is the opposite to the function of credit counselors who guide clients in improvement of their credit reports and scores through better financial management.

Basically, credit repair organizations offer three steps in their credit repair services.

1) These companies will ask you to forward them copies of your credit reports which you must obtain directly from credit reporting agencies such as Equifax, Experian, and TransUnion.

2) Then, credit repair organizations will recommend which items on your credit report you should dispute on.

3) They will contact the credit reporting agencies to challenge the questionable items on your credit reports after discussion with clients.

However, all of us must see this glaringly simple truth in personal finances: it is not legitimate and illegal all the more to remove accurate negative information from a credit report. The precise reason for this dilemma is that credit reporting agencies are obligated under the Fair Credit Reporting Act (FCRA) to correct or delete inaccurate, incomplete, or unverifiable information, usually within the span of a month. There is even no requirement at all to take out and erase accurate information unless it is more than seven years old (or bankruptcies that are over ten years old).

When des Credit Repair Actually Work?

Here are the following situations where credit repair companies help you with your credit problems:

  1. If you have legitimate errors on your credit report: Legitimate errors on credit reports range from errors in reporting from lenders to simple errors in your personal information. a credit repair company can correct those errors for you.

  2. If you have errors that can’t be verified: A loophole in credit reporting that credit repair services should exploit is the verifiability of details. Should any negative item appear from a lender who was bought or went out of business, they are required to remove it from your credit report.

  3. If your lenders are willing to work with credit repair agencies: Only when lenders are willing to cooperate and listen are credit repair services allowed to raise your score. 

Don’t judge the book by its cover. Everyone should make this their motto to be able to play safely in the game of life. This is not a matter of trust and distrust, but understanding the situation so you won’t be manipulated against the rules.

For more expert advice on credit repair, visit www.CreditRepair.com today.

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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