How To Repair Your Credit Score NOW Simple No Cost Methods You Can Put To Use Today by Jamaine Burrell

Author:Jamaine Burrell
Language: eng
Format: epub
Tags: credit score, credit report, collections, liens, bankruptcies, identiy fraud, credit repair, credit profile, personal information
Publisher: Atlantic Publishing Group
Published: 2013-10-23T00:00:00+00:00

Credit Repair

When individuals are experiencing problems with paying debts they may find themselves in situations which they may be capable of handling on their own or they may require the services of legitimate credit repair agencies. Individuals who are overwhelmed with debt, dealing with multiple financial problems, and in conflict over a suitable solution need to engage some sort of plan of credit repair.

Credit repair agencies have a history of scamming individuals with false promises of being capable of repairing their credit. Congress has enacted legislation that regulates the behavior of these companies by establishing strict guidelines regarding payment for such services and disclosures provided by such services. In general, credit repair companies are limited to performing the same types of activities that individuals are entitled to perform themselves, and they may not accept money in advance for their services.

The primary problems that consumers find themselves facing that are handled with the services of a credit repair agency include the following:

• Multiple collection accounts.

By using the techniques described below under “Steps to Repairing Bad Credit” one may be capable of handling a few collection accounts on his or her own. However, when individuals are faced with five or more collection agencies, they face various conflicting and unreasonable demands at one time.

• Joint credit problems.

Credit problems that are shared with another individual, particularly an individual who refuses to cooperate with problem resolution, may be best handled by making use of professional credit repair services.

• Secured debts.

Debts that are secured by collateral, such as mortgage loans, vehicle loans, and other loans backed by real or personal property could result in the loss or repossession of the securing collateral. Lenders of such loans tend to be less willing to work with consumers in resolving financial problems. In fact, the more collateral that secures a loan, the less willing the lender is to assist the consumer since the lender is put in a win-win situation. Some of these lenders purposely operate under rules that are complex and not well defined for the consumer.

Credit Repair Companies

Many companies claim to be capable of “repairing” a credit rating and credit score by recreating credit files with positive entries. Unless such companies are involved in some unscrupulous or illegal activity, such companies can do no more to improve one’s credit than the individual can do alone. Legitimate credit repair companies may remove only inaccurate information from a credit report. They are not capable of removing information that is accurate.

The federal Credit Repair Organizations Act governs all credit repair companies. The act defines a credit repair company as any person or company that states either directly or indirectly that they can improve one’s credit report. The act mandates that credit repair companies engage consumers in a contractual agreement, and it also mandates that they allow the consumer an opportunity to cancel the contract. The act further stipulates that a credit repair company may not make any statement that implies that they will alter one’s identification to prevent the display of that person’s true credit history.

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