There are credit repair businesses with years of experience, but there are also companies which open quickly. These sometimes close just as quickly, leaving the customer with less money and the same credit score. An effective credit repair program can be a "dream come true", but a credit repair scam can be a nightmare.
If you are considering a credit repair program offered by one of the many credit repair businesses, there are certain things which may indicate a scam. The Federal Trade Commission advises that consumers should beware of credit repair businesses which claim to be able to repair your credit in a very short period of time. A credit repair program takes time to implement and time to work. Thirty to forty-five days is reasonable for initial results.
It is also, of course, advisable to avoid credit repair businesses that recommend an illegal or questionable credit repair program. If you have problem credit, then you have enough problems. You do not want your credit repair program to create more. A legal and effective credit repair program includes contacting the various credit bureaus to have negative items removed from your credit report. An illegal credit repair program includes applying for an Employer Identification Number (EIN) to use instead of a social security number. Credit repair businesses which suggest the EIN alternative should be avoided. An EIN is a number assigned to a business by the IRS. If you are not a business owner, you have no "business" applying for one.
A comprehensive credit repair program should include an evaluation of your particular credit situation. If a company offers a free evaluation, take it, but do not disclose social security, credit card or bank account numbers. Only discuss your credit problems in general terms.
It is possible to avoid the credit repair businesses all together. If you have the time, patience and energy to develop a credit repair program on your own. You can view the information in your credit reports free once a year at http://www.annualcreditreport.com. Spell it correctly or you may end up at an impostor site. FICO charges consumers a fee to view their credit scores, but many lenders use the FICO scores as the basis for determining credit worthiness. A complete and effective credit repair program will remove negative items from your credit report, which in turn will improve your FICO scores.
Some law firms offer a comprehensive credit repair program. These credit repair businesses offer only legal options for consumers interested in improving their credit scores. Of the many companies which offer credit repair services, one which is associated with a law firm is probably the safest choice.
Though you may have heard otherwise, it is possible to improve your credit score and it is worthwhile investment, whether you choose to hire one of the credit repair businesses with a legal credit repair program or do it yourself. For more information about credit repair businesses, visit the Credit Repair Blog.
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