Is This Credit Repair Company Legitimate?

Many consumers find themselves relying on credit more frequently these days. In fact, bills and minimum bill payments seem to be getting larger and incomes seem to be getting smaller, or at the very least, reaching a plateau. Furthermore, circumstances may lead to late payments, missed payments, or insufficient payments.

The end result is the loss of a good credit rating. In fact, some consumers may discover that not only has their credit rating gone down, but also, it has developed into a bad credit rating. The only thing left to do is attempt to repair the credit.

The first step one needs to take is actually the very simple decision of whether or not to attempt the repair on your own. Many consumers may be uncomfortable with this course of action; and therefore, they decide to use a credit repair company to take care of it for them. Deciding which companies are legitimate is not an easy process. However, certain suggested guidelines exist that can make it easier.



Widespread accessibility of the internet and advertising has created an overwhelming number of credit repair companies. Follow a few simple guidelines and spend a few moments to read through the information the company offers about their business, qualifications, and policies to help you decide whether or not the company that you are considering is a legitimate company.

Discover anything you can about the company. Look at the company's security and privacy statements that should be posted on their website or should be available in a pamphlet or hand-out sheet. Phony companies, ones that are simply out to get your money, usually will not post this type of information since their purpose is rather shady in the first place. The absence of a privacy statement should be a tip off that the company may not be on the up and up.

Additionally, many phony websites make use of popup windows to collect personal information that can be used by them at a later point in time. Pop up windows should be user generated with obvious links.

Trust your instincts. If the claims made by the credit repair company seem too good to be true, they probably are. It follows, then, that the company is probably not legitimate. If the company makes claims that only they can remove bad credit, it simply isn't true. If the company claims that they can remove bad credit information that is accurate, they are probably not a legitimate company.

Furthermore, it is illegal for a company to charge and collect money for services they have not yet performed. This illegal business practice to induce consumers to pay up front fees for the promise of services such as credit repair is a clear indicator that the company is not what it should be.

Likewise, if the company suggests that you change your social security number, it isn't legal. Disputing all of the information on a credit report is not advisable either. If the company suggests this, then it probably isn't a legitimate company.

Legitimate companies will not attempt to deceive the consumer into believing that all negative information can and will be removed from their credit report. If the negative information is accurate, then it will only be removed after a certain number of years. After seven and a half years, negative information about credit can be removed. Consumers must wait ten years for information about bankruptcies to be removed.

Additionally, a legitimate credit repair company will inform the consumer of their right to cancel the contract. Furthermore, the company will provide the consumer with a written statement that expressly states what their rights regarding their credit file are. A legitimate credit repair company will not collect money from a client prior to performing the promised service of repairing the credit of the consumer. Promises of full credit repair generally will not hold up, and therefore, a legitimate credit repair company will not make such promises. While the credit repair company will infer the ability to repair some aspects of the consumer's credit, they will not suggest that negative information that is accurate will disappear from the record.

There are no guarantees or promises of perfect credit. The company cannot state for a certainty that they can remove or delete negative information from a consumer's credit report if the information is accurate. In many instances only the passage of time, the repayment of debt, and a firm effort will create the repair.