Credit Repair Services

Credit Repair Services....WHY would you need this??

Most credit repair is a do it yourself project that can be done without cost. So why would one consider a credit repair service?

You run behind on your bills one month and your credit gets dinged a bit. A few months go by and you're paying everything on time and working on getting that debt load down.

THEN there's a lay off at work. You frantically call to start unemployment benefits but they delay you just as they do to everyone else in your circumstances. You're next set of credit card payments are due but you haven't got that check yet and you never got around to setting up that emergency fund you knew you needed but just kept putting off.

After a few agonizing weeks you finally get that unemployment check but you're late again on your payments and then you start realizing that the unemployment allotment given to you just isn't enough money.

You think "I'll just get a loan and consolidate my debt which will extend my payment time making things easier till my situation gets better. Then you get the letter stating the loan didn't get approved. You find out the hard way that your credit report has erroneous negative information and your income is deemed insufficient for loan approval.

These are the times that many will consider credit repair services.

Do I really need this?

One thing that should be determined first before considering a repair service,

is there alternatives to this and if those alternatives are more cost effective and in the end and result in a better solution to a difficult situation.

There are times that a difficult situation may cloud your judgment or a "great opportunity" will lead you to impulse actions such as the house of your dreams just got on the market or the car you've always dreamed of owning has been found at a dealership that promises you won't find this deal ever again.

When you are considering credit repair services in these instances it may be best to slow things down and think about whether these "great opportunities" are really needed or just an answer to the whims of the heart.

That advise of judging whether something is a need or a want is crucial in this instance as the things in life that need a good credit score are usually also those that have a lasting debt responsibility.

So there should be no room for impulse shopping here. Deep thought should be the main course of action.

Perhaps your situation does warrant the use of a credit repair service.

Your family has outgrown the 3 bedroom apartment you've been renting. You're making great money as your business has picked up speed.The house market is great for the buyer, the rates are good on mortgages and you have a substantial down payment.

That house you've been looking at down the street is only a bit larger than what you already have but has plenty of storage options and space to expand.

What stands in the way is a bunch of collections accounts and an old bankruptcy.

Great care should be exercised when considering this type of  service as some of these organizations may claim that their work will be done quickly raising your score in only a matter of weeks.

The Federal Trade Commission cautions anyone from organizations that make these claims as credit repair takes time. Removing accurate information they claim is illegal.

Another thought about using a credit repair service is the amount of time at your disposal and how comfortable you are in the disputing process? As with any profession the work done by others can in many cases be done by yourself, but would you??

In my younger years I attempted car repair myself. Saved money? yes! time? NO!!!! It took all day to do what an experienced mechanic would have accomplished in only one or two hours. The knowledge the professional possesses saves time. Knowledge in the case of credit repair may also result in a more thorough repair of your credit.


In the article preceding this page it discusses credit repair myths. It may seem that the information on that page and what I previously presented on the credit repair basics page may contradict each other. The credit repair organizations act which guards the consumer against anyone stating that they can remove bankruptcies is one of these in contradiction.

The credit repair myths page suggests those that have these problems are in need of credit repair and more importantly credit repair services. It additionally suggests that legitimate information can be removed.

The page before the credit repair myths (free credit repair tips) may elude you to why there is a discrepancy in this matter. The government states that no one may legally remove accurate information.

Yet many credit repair services state that it is possible. That is because there also exists a procedure for clarifying inaccurate information AND BELIEVE ME much of the information they record is inaccurate.

Many times you do not have to prove that the information is inaccurate just challenge whether it is accurate. The process they must go by in that situation is verification. This is where many credit repair services MAY get the edge in removing seemingly impossible negative information.

In this matter if it is significant information such as a bankruptcy, liens on property, collection accounts, judgements, ect the use of a credit repair service may be worth the effort and the money.

It will cost you money and depending on the service could be costly. The long range savings in a removal and what your credit score could reflect afterward are the criteria for evaluating and deciding upon the use of credit repair services.

The reason for deciding to use a credit repair service in this case is usually very dependent upon the fact that many of these services use attorneys to perform this service. If there is anything I know about attorneys is they look for loop holes in the laws or study and research the action that led up to the negative information.

There may also be easily correctable legal procedures to remove some judgements (depending on the circumstances) or liens.

Many times the credit bureau must remove the information because they cannot verify it's accuracy.

This does not mean the information was inaccurate, it just means they cannot verify it usually because the reporting lender did not keep good records. Additionally if a court or another attorney in a legal matter such as bankruptcy did not file the right paperwork or follow a set procedure for doing so and it is found then an action may be challenged.

Then there may be plain and simple legal issues that could negate an item. I will elaborate on a situation in my own life where this could be true.

When my son was of teenage years I got him a cell phone. He wasn't old enough for this in his own name so it was under mine. You have to be 18 to have a cell phone account in your name (in the state of MA). He had a job and a checking account at 16. At 17 he had got behind on the payments which were in my name. A trip to the service provider resulted in a young associate who probably worked on commission putting a new account in my son's name.

This associate saw a kid with a check book and no problem writing a check for a somewhat substantial amount. The new application filled out for this account changed the birth date of my son by one year to make him old enough to receive his own cell phone account.

As with many his age the account ended up behind and eventually in collections. This is where an attorney may work to delete an account.

How the credit repair services work

Depending on how lengthy your negative items are and what you are trying to accomplish credit repair services might be for you. There are many services on the web. Most seem to be charging a one time set up fee.

This is to examine your credit report and report back to you what can be done and how long it will take. That is how they keep compliant with the credit repair organizations act. They must not charge you this fee till they review your situation and develop a plan. Once you are in agreement the initial charge will go through. Afterward there is a monthly charge. It will be charged until the services agreed upon are finished.

With this kind of payment plan careful consideration should be given to the order of negative items deleted. Is there a penalty for concluding the plan before fully implemented? Do they guarantee their work? If they are well experienced in this work they should know at the set up time what they can accomplish and approximately how long it will take.

For this matter in your decision to use a credit repair service, when you do find a company or companies (If you can't decide who is better) do check the Better Business Bureau for any complaints.

You may want to also try going to the Federal Trade Commissions web site and put the name of the company into the search box. This will pull up any possible action they may have taken against a credit repair company not conducting business within the law.

Finally when deciding upon a credit repair service you will want to check the credit repair organizations act to make sure that the agency you are dealing with is working within the law.

Credit Repair you need them?? Only after careful consideration of what your objectives are and if they make sense in the long range stream of things. If you truly need it done quicker than what you can accomplish on your own or you have legal issues that should be addressed by a professional then YES you need Credit repair services.

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