What You Need to Know About Credit Repair Companies
A little background on me before you read this, i have been in the credit industry now for over 19 years, have reviewed over 24,000 reports wrote a book been on radio and tv ( local and national) and all the other bells and whistles out there so hopefully that allows you to form an opinion on my knowledge base.
If you’ve recently faced financial setbacks with what is going on currently in the world or are still dealing with the aftermath of a divorce, job loss or medical challenge, chances are your credit score has taken a hit. But before you consider hiring a credit repair service, there are some important factors to keep in mind and what to look out for.
Both state and federal laws require credit companies to inform you that you can dispute items on your credit report independently, without their assistance. This means that credit repair is a service you pay for, much like fixing your car. However, attempting to repair your credit on your own can sometimes lead to more complications.
Any company you choose smaller or larger, the individual you hire is often a sales representative who earns a commission when you sign up for their services.
Credit repair sales agents, managers, and account representatives earn their income from the fees you pay. Once you’ve enrolled in their services, your case goes to the processing department, where the actual credit repair work begins.
Consequently, salespeople might tell you what you want to hear to secure your payment. A common tactic is to claim they can handle everything for you, assuring you there’s nothing to worry about.
In some cases, it’s not entirely the salesperson’s fault, as they may be following company protocols or training. A typical sales pitch involves promising to investigate your credit report for any unverifiable, misleading, inaccurate, or incomplete information. However, it’s crucial to realize that each credit report is unique, much like a thumbprint. What works for one person may not work for another.
An common advertisement i have been seeing lately is mentioning a common industry term to make it look like there is a new law or new right just given to consumers.
I once encountered a manager from a credit repair company and asked how he explains the date of last activity (DLA) to clients. To my surprise, he had no idea what I was talking about. This is a person responsible for communicating with clients but lacks one of the most important pieces of information for the knowledge to guide and educate clients effectively. This example highlights the need for caution when dealing with credit repair services.
Keep in mind that you are purchasing a service from someone representing a company, and they may not be well-versed in the legalities of credit reports.
Shockingly, many people sign up for credit repair services and they put no effort into looking the company up or checking out their credentials to see if those credentials are just organizations they pay to be a part of or a commercial to make it look like they are credible.
Additionally the consumer hires the company and they haven’t even reviewed their credit report. It’s essential to remember that it’s not what they tell you but what you sign that truly matters.
NOW what i mean by that is all the promises made to you by the sales person ( they will NOT call themselves sales people) nowadays they use account executive or senior account executive mean nothing as its not what they say BUT what YOU sign.
ALSO…. watch out for the ones offering a money back/satisfaction guarantee. many times (usually most) put a dollar amount on a item removed that may not even benefit you BUT it is what you signed.
So..before choosing a credit repair service, it’s vital to verify the company’s credentials. While credentials don’t guarantee their effectiveness, it’s a step to confirm their claims. For more tips on avoiding scams, visit www.waynethecreditguy.com/spot-scams.
Have a credit repair or debt question? feel free to go to my website main page and call my number.