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THE MAJOR MISTAKES CREDIT REPAIR COMPANIES MAKE AND HOW TO AVOID THEM

9/13/2020


Everyone wants to have at least good or great credit to lock in lower interest rates or to obtain higher credit limits for large purchases. In some cases a great credit score is needed to get mortgage approval from a lender. Credit scores affect everyone in our society who need to borrow money to make a purchase.


A credit repair company knows that you will need their services if you mismanage your money, lapse on monthly payments, and even outright fail to pay any debts on your credit report. Credit repair agencies use many different strategies to help their clients remove items off their credit reports. It is important to take note some of the mistakes they make that can hurt your score rather than help your score. Some companies unfortunately, even knowingly, make these mistakes that can not only hurt your score but also cause the legal system to become involved.


List of mistakes credit repair agencies make:


  1. Guarantee: The first mistake most companies make on their website or whole they speak to you over the phone , is the guarantee that they can remove all negative items off your credit report. It is against the Credit Repair Organizations Act (C.R.O.A) to make statements that are misleading and untrue. Beware of any organization that makes these outright guarantees to remove items off your credit report.

  2. Removal Methods: There are many great strategies to remove negative items off your credit report. However, there is bad and even illegal methods to attempt to remove items off your credit report. If your credit repair agency is falsely claiming FRAUD on every item on your credit report when it isn't, then you need to quickly stop doing business with them. The major credit reporting agencies usually require a police report be provided when disputing fraud. If they persist to falsely seek removal using a fraud/identity theft claim, then you may be held liable for fraudulent charges and even face fines, and charges from local authorities.

  3. Pricing: Some credit repair agencies offer their services for extremely low prices. If you see an agency offering credit repair services for almost next to nothing, you should be cautious of who is actually working on your credit profile. Some credit repair agencies use overseas, low pay workers, to work on your credit and there is no oversight on methods or strategies used. We have heard many horror stories from clients who move from a competitor to our agency because of this very problem. They were not getting the results or customer service they were expecting and in some cases promised. Remember you get what you pay for!

  4. Security: In many cases there are medium-sized credit repair agencies outsourcing their disputing process completely to cheap labor workers overseas. However, the owner or management have never been to the offices or know exactly their hiring methods or practices. This is the hidden danger with some agencies always looking to cut costs at the expense of security over your personal information.

  5. Communication: In many cases credit repair companies keep you up to date with portal access and great phone support. However, you then have the problem where you can't speak to anyone who is familiar with your personal situation. You shouldn't have to wonder what is happening with your dispute process. Communication between the agency and the client is key to achieving the results you want and need.

Beware of any company offering you flat out removal guarantees especially within a specific time frame. After signing up, ask how will they go about removing items off your credit report. While the company works on removing items from your report, you should be keeping track of any updates or changes to your credit file. If you don't have identity theft or fraud, they should not use those methods to remove items off your report for any reason. If they do, then they are violating federal laws, and by doing so you risk being held liable as well. Remember, it is your name on the line!


We are always looking for low deals and for ways to save some money. Remember though that you get what you pay for when dealing with companies charging really low rates. You must ask yourself are if they are really working on your report or if they are outsourcing the labor to overseas workers. The less people who have access to your credit file, including your personal information, the more protected you are against new fraud appearing on your credit report. If you find yourself calling your credit repair agency and are not getting any real answers about your results, or new problems have been created by your credit repair agency, then you might need to move on and find a new agency to help you.


If you need any help or guidance to repair your credit report and are looking to change around your credit score within a reasonable time, then give us a call at 1-855-495-9212 or sign up online for a FREE CREDIT CONSULTATION. We are here to provide professional help so you can obtain credit freedom!

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