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Tips to avoid Credit Repair issues

It’s important to avoid complications and issues within credit repair just as you are doing your credit repair to clear your debts and to increase your score. A lot of people are now facing the problems due to a bad credit report. This negative credit record makes your life harder when you are in need of a loan or mortgage or credit card. Low credit score mainly occurs due to closing an old account or due to late payments. To correct your credit report and to help increase your credit score there are many credit repair companies available for your service. You cannot completely believe all these companies as there a number of frauds in this field too. So you have to get a detailed enquiry on the company you decide to go forward with your credit repair.

The credit repair services have to follow certain obligations towards their customers. All the genuine credit repair organizations are governed by a law known as the credit repair organizations act. This federal law requires every credit repair service to accomplish certain commitments towards their customers. You can avoid the credit repair service if they don’t follow the rules according to this act.

You can find whether a credit repair service is a scam or not by checking on the factors I am going to provide below.

  • If the credit repair company asks for a payment before they perform their credit repair services, then you have to consider whether to believe them or not. Think wisely and make a decision. Check on the reputation of that company and if you find them trustworthy then you can make a payment. Otherwise don’t.
  • If the company forces you to perform illegal practices to clear your credit report and raise your score, then don’t hesitate, quit that company and register a complaint against them. The illegal actions may include, creating a new credit identity, remove accurate information’s from your credit report, etc.
  • The credit repair company must provide a copy of the “consumer credit file rights under state and federal law”. This will let you know your rights to obtain an accurate credit report and settle the disputes due to inaccurate credit report information.
  • Ask the credit repair company to provide the contract to view before you are asked to sign in it. The contract must include the following information’s, if it’s a genuine company; the amount you are being charged for their service, the time period they require to perform their service on your behalf, the name and business address of that company, complete details of the services that they will provide you. Most of the contracts contain a statement that they can cancel the contract within 3 days.

You have to take care not to rely on a scam credit repair company which provides their service in an illegal manner. Otherwise you will be the one to be in trouble. It’s illegal to remove negative information’s from your credit report, especially if the information is accurate. If there is any inaccurate negative listing in your report, then you just have to write to the credit bureau as you have the right to dispute it off your report. However if the information is true, then neither you nor the credit repair company have the right to dispute it off.