What is a Credit Repair Company?

A credit repair company by definition is an organization that offers you assistance to improve your credit score through various means such as checking the accuracy of your credit reports with the credit bureaus, settling any credit report dispute as it arises, repairing credit in the wake of bad debts and so on. In other words, this is an organization that helps you to manage your finances better.

What can a credit repair company can do for you?

You will find that a good number of people advocate the "do it yourself" credit score repair method instead of availing the services of a credit repair company. Is that better? You decide. Here is what the credit repair agency should offer you:

- checking the accuracy of the remarks entered in your credit report as per each credit bureau (there are three of them - Experian, TransUnion and Equifax)
- initiated a credit report dispute when inaccuracies are discovered; following it up until they are completely removed from the credit report
- advising you (the indebted person) on what are the best methods to adopt so you can improve your credit score within the shortest possible time
- counseling you regarding the best ways to manage your finances so you will not fall into debt traps again
- facilitating avenues that will enable you to earn your livelihood again/ better
- keep a close eye on the credit report that each credit bureau maintains to prevent any fault that could erode your credit score
- showing you the way to maintain a good credit to income ratio that will reflect well on your credit score

What a credit repair company can not do for you?

There are many people who approach a credit repair company like they would a genie in a magic lamp. Here are some things that a credit repair agency cannot do:

- settle any credit report dispute overnight - it takes a minimum 60 days
- repair credit reports overnight - it takes a minimum of 6 months
- wipe off bad debts - it requires a minimum of 6 months
- change facts entered in your credit report - it will remove only those which are genuinely inaccurate
- wipe off the history of bankruptcy - it can only help you build a better score as a bankruptcy record will stay on your record for a minimum 7 years
- increase your credit score overnight - this is a gradual process that requires at least 3-6 months

3 warning signs that point to a fraudulent credit repair company

It is true that there are plenty of unscrupulous people out there who thrive on the gullibility and helplessness of indebted people to make a fast buck. Here are three warning signs that should tell you that the credit repair company is fraudulent:

- it asks for their fees in full upfront
- it promises you unbelievably fast results
- it introduces you to illegal ways of fixing your credit scores

Avoid any such credit repair company like the plague! Remember, a bad debt or even bankruptcy is not the end of the world. However, going against the law to fix poor credit can backfire on you pretty badly. Never be tempted into accepting such "help" because these organizations are fraudulent and will lead you into more trouble.

Find a Credit Repair Company
If you suffer with bad credit, check here to find the help you need.