credit repair companies - deal or dud?
My husband and I are considering having a credit repair company clean up our credit. I have been working in this myself for about a yr and have increased our score by 50-60 points for each of us. The problem is there are certain things that just won't come off. Yes, the bad debt is legit from being young and dumb - but that a whole different topic in itself. I am told there are companies that can actually go in and change your credit report? How reliable is this info? Have you ever used one? Is it worth the cost? Any ideas?
Public Comments
- According to the Consumer Action Handbook 2007 edition available at www.ConsumerAction.gov these companies are frauds. I quote "Credit repair companies advertise they can erase bad credit for a hefty fee. Don't believe it". Under the Credit Repair Organizations Act, credit repair companies can't require you to pay until they complete promised services. They must also give you a copy of the Consumer Credit File Rights Under State and Federal Law before you sign a contract. A written contract that spells out your rights and obligations. And 3-days to cancel without paying any fees.
- A good rule of thumb: if their website ends in .org, you are probably safe - they are non-profit organizations. If not, I'd be very very wary - they are in the business of making money. In either case, there is probably not much (if anything) they can do that you cannot do yourself with perserverence. Good Luck
- I have been working on my credit score as well. I raised my credit score to 60 points in 2 months. I did have to pay off some things like medical bills and credit cards. I sent letters to the credit bureau myself. I am not saying do not use a company to help you, but I am finding that I have done good by myself. I don't know if a company can change your credit report. If so, I would like to know of one myself.
- Hi, I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News Special Edition.Check it out here: http://shortlink.co.uk/kbb
- I used to the credit repair for a mortgage company who charged up to $1500 bucks on and the truth is that there are no companies who can actually go in and change information on your credit report unless it is truly reported incorrectly. The credit repair the company offered simply assisted clients in erasing deragotory accounts that were reported incorrectly. Any company that wants your money up front without seeing any results first is a scam, as well as if they try and make you change your entire identity just to start your credit over again.
