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What Is Credit Repair?
The term Credit Repair is used to refer to identifying and correcting inaccurate information being presented on a consumer credit report across the three major credit bureaus. This involves disputing the identified items in the form of letters mailed to the bureaus in order to correct or remove the information that is reflected. This also includes a strategic approach to optimize credit scores in order to assist in accomplishing any short or long-term financial goals the customer may have.
What Do Credit Repair Companies Do?
Almost every credit repair company is different, not necessarily in the practice of repairing consumer credit reports but in the way they conduct business. Although operational practices may differ, credit repair companies do:
- Identify inaccurate and erroneous information reflected on a consumer credit report
- Handle the dispute process.
- Advise strategic credit management and development plan designed to raise and maintain credit scores.
- Provide results to customers.
What Are Credit Repair Companies Not Allowed To Do?
Credit repair companies must operate under strict guidelines instilled by the Credit Repair Organizations Act (CROA). This is a federal law created by the government to ensure that credit repair companies are using correct practices that protect the consumer and prohibits these companies from:
- Accept pre-payments for services not yet rendered. A service-based company can only accept payment after the service has been rendered.
- Make promises or guarantees about results. Credit repair companies cannot guarantee results or certain score increases will occur when hiring them as the ultimate decision is not up to the customer or the company. Terms like “we can delete anything” or “we can increase your score by 100 points” are prohibited.
- Make deceptive representations or false and misleading statements. We can not lie or encourage our clients to lie to get items removed.
Is Credit Repair Legal and Legit?
Yes, credit repair is legal and legit. Our credit education and document processing services will help you to use the law in your favor. That law is called “The Fair Credit Reporting Act.” The FCRA gives you the right to dispute any item on your credit report. If that item cannot be verified within a reasonable time (usually 30 days) it must be removed. Studies have shown that 79% of all credit reports contain errors. This is nearly 8 out of 10 reports. It is your right to dispute inaccurate, erroneous, false, or obsolete information.