According to the “Credit Repair Organization Law”, it is illegal for credit repair providers to lie about what they will be able to do for you and try to make you pay before they have performed any service. These are red flags to watch out for when comparing credit repair service offers. There is a do-it-yourself approach, but it can be time-consuming and complicated depending on how messy your credit reports are.
The ideal company will request copies of your reports from TransUnion, Experian, and Equifax and review all derogatory flags such as charge-offs, bankruptcies, late payments, tax liens, etc. Also, did you ever check to see if you were one of the millions of Americans affected by the Equifax hack? Hurry up and do it if you haven’t already. If some of your personal information is vulnerable to identity thieves, you’ll want a credit repair company with attorneys to help you prove that you’re a victim.
The CROA requires any company you work with to explain your rights in a written contract, along with details about the services it will provide. No company can make specific promises. If you are not provided with proof that they are doing everything they can to help you, then you have the right to sue them in federal court.
Avoid scams with credit repair services
Avoid scams by paying attention to the red flags and only working with an organization that has a long-standing positive reputation. What are some of the strategies that a legitimate company will carry out to help you repair your credit? You will prepare a plan to dispute errors and try to eliminate as many negative elements as possible by using legal methods. The reason it is ideal to work with such a company rather than using the DIY approach is that they know how to negotiate with creditors and will do so on your behalf. Tired of being harassed by nasty debt collectors? Simply opt for credit repair services that include sending cease and desist letters to collectors.
It may not be a good idea for you to apply for new accounts to try to add positive information to your report to balance out the bad, so beware of any company that tries to convince you to do this. If you’ve had trouble managing your debts in the past, it may not be the right time yet for you to apply for new lines of credit/loans. Depending on how low your credit score is, you may not even be able to get approved for new credit accounts anyway, and applying for them will negatively impact your credit scores anyway due to “soft hits.”
Now that you know how honest and legitimate credit repair services can help you, you can start cleaning up your reports. Simply get a free consultation from Lexington Law.