credit Repair Company refers to any organization that can help a consumer to restore a damaged credit score. Sometimes a consumer credit report may have some negative scores that have to be restored. The consumer in question can employ the help of such a company. If you are employing the services of credit repair firm, it is good that you understand the truth about these organization and the services they can render to you. Do not be carried away by some of the promises most of the organization make to their clients. First of all, it is your legal right to reject and dispute against false or inaccurate information in your credit score. The credit repair company will assist you in doing that. The process of correcting false information on your credit report involves three steps. The company will request for your damaged credit scores which have to be issued by the three main credit rating agencies, namely, Equifax, TransUnion and Experian.
When you have forwarded the credit report, it is the duty of the credit repair company to verify the report and advise you on which items that you need to file a dispute on. The organization will then file the dispute to the rating agencies. The agencies have to review the report and then remove inaccuracies within 30 days from the day the dispute is filed.
However, you should bear in mind that no credit repair company has the power to remove correct data from your credit report. The Fair Credit Reporting Act (FCRA) only obliges credit reporting agencies to eliminate inaccurate data and unverifiable information from a consumer’s credit report. In other words, any organization that promises to help you remove accurate figures from your report is a fake company.
You can always avoid such bogus credit repair company. There are some signs that will help you to identify scams. The FTC outlines some of these signs.
According to FTC, any organization that demands payment from you before they complete their services is a fake one and you should not have any business with such company. A good credit repair organization like Aggressive Credit Repair does not charge any money until they are through without their services.
Fake organizations rarely advise their clients on their legal right and how they can help themselves without spending money is a fake one. A good credit repair company should be able to tell you which items in your report that are disputable and which ones that are not. Fake companies can give you bad advice like advising you to use a totally new credit identity so that you will get a new credit report. You should avoid such companies. Any company that wants you to dispute an accurate figure is a fake one. credit Repair Company is of two types, non-law firm credit repair and law firm credit repair. Each of these organizations is under the protection of Credit Repair Organization Act. Law firm credit repair are law firms offering credit repair services. They are also under the rules of states bar association.