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Is Credit Repair a Legitimate Business?
The Importance of Good Credit
Having good credit is important in today’s world. Many decisions that directly affect you are based solely on your credit score, such as whether or not you are approved for a loan or a mortgage and what interest rate you will pay on that loan. For someone who is haunted by past debt problems, the ultimate goal is to repair their credit. There are many companies today with flashy professional websites that will promise to repair your credit, for a reasonable fee, and it is easy to be lured by these quick-fix scams.
Beware Credit Repair Scams
 Credit Repair is usually billed as the removal of bad credit references from your credit report. This does not necessarily mean that you don't owe the debt, only that the creditor cannot PROVE you owe the debt. This is usually accomplished through disputing the debt with the creditor. Dispute is NOT Negotiation. There are very few companies actually licensed to do business as credit repair companies. At this writing, nationwide, there are only 33 organizations licensed to do business as a credit repair company.
There is No Quick Way to Fix Credit
In reality, only time and the resolution of your debts will improve your credit rating. Claims to “fix” a credit report can only be false, as there is no way to remove negative credit information if that information is true. Often when people find themselves in a situation of perpetual debt and poor credit, gimmicks and claims likes these are all too tempting. The Internet has created a platform for are a many credit repair scams. They promise a clean credit file for about $500- $1000 -- certainly a situation that is too good to be true. If you encounter a company that promises to fix your negative entries on a credit report, beware!
Eliminate Credit Card Debt to Improve Credit Rating
Lenders base their decisions on what is called a “FICO” score (short for Fair Isaac Company, a California company that specializes in constructing statistical scoring models.) The truth is, only Fair Isaac knows how FICO scores are calculated, and their formula is kept very secret. Others can make educated guesses as to what will help or hurt a score, but those are guesses.
It is likely that many factors go into a credit score, including how much you owe, and whether or not your debts are being paid on time. As mentioned above, only time and positive factors can outweigh negative information on a credit report. A key to doing “real” credit repair for yourself is getting rid of existing debt.
Through our Debt Settlement program, you can eliminate your credit card debt, which should ultimately improve your credit score. Once you've eliminated your debt, Your credit rating should improve if you use your credit cards moderately and pay the balance off at the end of each month.
Debt Consolidation - Third Party Assistance - Lower Credit Score
Debt Settlement program, please be advised that we will report no such status or, TPA (Third Party Assistance) to the credit bureaus. So if you are considering pursuing credit repair, whether through a credit repair (scam) company, or by doing it yourself, try to remember that our Debt Settlement program can be an important service to help you get started.
Be very careful if you are considering Credit Repair, especially through a company found by a search engine on the Internet. Call them and ask them to verify that they are indeed fully licensed as a credit repair company. There are many unlicensed companies currently conducting credit repair, so you should definitely contact the company and ask for proof of licensure.
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