Credit Repair Companies and the ECRA

If you’re seeking the services of a credit repair company, you should be aware of just what such a company can and cannot do for you.

Some people expect near miracles when they hire a credit repair agency. Unrealistic expectations are never a good thing. Moreover, a credit repair company that makes too-good-to-be-true promises is one you will want to steer clear of. But as for the company, a client who comes to them with unrealistic expectations is likely to end up being a dissatisfied client, regardless of how hard the company works on his behalf.

Just what CAN a credit repair company do to solve you financial problems?

• Check your credit report from each of the major credit bureaus, for information that is to be inaccurate
• Initiated a credit report dispute when inaccuracies are discovered
• Following up until all errors are removed from the report
• Advise the client on the best course of action that will result in the quickest possible improvement in your credit score
• Counsel you regarding the best ways to manage your finances so as to avoid future problems
• Facilitating avenues that will enable you to earn your livelihood again
• Watch your credit report closely to prevent any errors that could erode your credit rating
• Teach you how to maintain a good credit to income ratio

What  you should NOT expect from a credit specialist.

• Settle a credit report dispute in a very brief time – expect it to take at least 60 days
• Repair credit reports by tomorrow – it will take a minimum of 6 months
• Eliminate bad debts – that takes up to 6 months as well
• Change factual information in your report – it will remove those negative accounts that cannot be verified
• Wipe off a history of bankruptcy
• Improve your credit report overnight – this is a gradual process that requires at least 3 – 6 months

Be alert to scams
It is true that there are plenty of unscrupulous people out there who are all to eager to take advantage of the  gullibility of desperate people to pad their own pockets.

Watch for these 3 warning signs that should tell you that a credit repair company is fraudulent:

• The company insists that you pay in full before rendering any services
• It promises you unbelievably quick results
• It utilizes illegitimate tactics in fixing your credit

If you find a credit repair company like this, run the other way! Remember, a bad debt or even a bankruptcy is not forever. But going against the law to fix your credit can spell disaster for you.

Never be tempted into accepting such “help” because these organizations are fraudulent and will lead you into desperation.