Bad Credit Repair: Beware of Sketchy Credit Repair Promises
What Is Bad Credit Repair? If you type the words bad credit repair into
google, what will pop up? Tips on how to repair your bad credit? Or perhaps credit repair companies who are
bad? Maybe a little of both. This video actually addresses bad credit repair
companies, or at least those that you should avoid when you are looking to hire a company
to help you repair your bad credit. The following are some things you should look
out for.
Bad credit repair companies give faulty claims
on how long the process will take. There are some credit repair companies that
claim they can repair your bad credit in 24 hours. Don’t fall for it. This illegal practice establishes a brand
new credit file by using an Employer Identification Number (or EIN) instead of an Social Security
Number, if you’re caught, you could be indicted for communications fraud.Then there are some
companies who promise a clean report within days. The method they use isn’t illegal, it’s
just very temporary. They request an investigation on every negative
item on your credit report, because they claim the law states while any item on your credit
report is under investigation it can't be listed. With the negative items deleted, your credit
score improves dramatically for a very short while. However, The negative items they might remove
will only reappear just weeks later unless they are challenged properly and systematically
within the law – which takes time.Other companies claim that their average client
“turn-around” is 3 months.
This doesn’t mean that results were seen
in three months, it means that the average client cancelled in three months due to unsatisfactory
service. In most cases it takes 6-12 months to repair
a persons credit, and to get a credit report in top notch condition, sometimes a bit longer. Bad credit repair companies charge for services
before any work is completed. Be careful of companies that require up front
payment or partial payment for services. In the credit repair industry, it is illegal
to charge for services that have not yet been completed. Reputable companies will charge a monthly
service fee for the previous month's work. This is not to be confused with a set-up fee,
which can be charged up-front and is perfectly legal and is normally less than $100 or so.Bad
credit repair companies also offer faulty guarantees. Some companies guarantee the removal of all
bad credit and that they can get anything deleted. No one can legally guarantee these results. Legitimate companies would not make such claims. Some companies may also offer a "full money-back"
guarantee – so Read the fine print of their service agreement before hiring them – if
it sounds too good to be true, it usually is a bad company.That being said, reputable
companies will offer a “warranty” (not a guarantee) that allows for a refund if there
is unsatisfactory service or results after a sufficient amount of time has passed.
We hope this helps you separate the good guys
from the bad – thank you for watching and good luck (captioned by http://www.LegacyLegal.com).
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