How Do Credit Repair Organizations Act?

Credit repair software allows consumers to improve their credit history and fix errors on their credit reports. The programs are not only a great way for credit repair but also keep personal financial information secure and private. These programs are used by millions of people nationwide to improve, maintain and protect their credit reports. Here are a few things to consider when choosing one of these programs.

  • Check the credentials and the reputation of the credit repair company. Some of the programs are operated by just a few companies and may not have any affiliation with other reputable credit reporting agencies. For this reason it’s important that consumers check the background and credentials of a company before entrusting them with personal information Be s ure to check consumer reviews on the company and the products they offer.
  • Check out how the repair company handles and responds to credit repair issues. There are many reputable credit repair organizations that respond quickly to consumer inquiries and have developed working relationships with various credit reporting agencies. The best repair companies will be able to help consumers in need with suggestions, solutions and help in fixing their credit reports.
  • Look at how much the program costs. There are many professional repair companies that offer a free report and an evaluation of your credit scores. Some of these programs cost several hundred dollars, while others may cost less than one hundred dollars. Some of the programs run as a subscription model, where consumers have to pay a specific amount of money every month, whereas other repair companies run a per report model where consumers can access their credit reports anytime and check for updates.
  • Contact the Federal Trade Commission to learn more about the new Credit Repair Organizations Act. This new law was designed to protect consumers from unscrupulous credit repair organizations who may use deceptive or misleading practices to get negative information removed from a credit report or raise credit scores. This law covers all the same negative information that used to be allowed by the previous laws. Consumers can contact the FTC directly to find out if they have any questions about this law and what they should do if they think there is wrong doing on their report.
  • If you find that your credit report contains errors, it is important that you dispute the items listed. Many credit repair organizations recommend that consumers dispute everything on their report, but some professional credit repair companies advise against it. To better understand this recommendation, you should contact the three major credit reporting agencies to ask them for a copy of the substantiated negative items and then compare them to the accounts listed on your report. If the discrepancies are found, the negatives need to be disputed. You can contact the agencies through their websites, by phone or through written correspondence.

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