Wednesday 17 October 2018

All Credit Repair Companies Are Not Created Equal

With thousands of credit restoration companies conducting business across the country, finding the right one can be difficult and intimidating but it’s very important that you take time required to not only find a reliable one but additionally find one that has the knowledge, experience and capability to provide the level of service you expect and the best results you deserve. Your choice shouldn’t be impulsive. Choosing a bad credit restoration company will render you vulnerable and increases the likelihood that further harm will be due to your credit file but on the other hand, choosing a fantastic credit restoration company has the potential to be among the very best financial decisions of your life by cleaning up your personal credit file and improving your credit rating. There are many things to consider beyond price when making your choice. Recognizing the difference between cost and value is crucial as seeking assistance from a business in the credit repair industry is nearly always a case of,”You get what you pay for”. The next paragraphs explain the four types of credit repair companies that compose the business and what to expect from every.

The first kind of credit repair business is typically a one-man show run from a home office. In general, this type of company promotes extremely low rates for their service and will usually have incredible service guarantees to top it off. It’s not unusual for this type of credit recovery company for a complete scam and take the customers’ money without providing any service at all. In this day and age, identity theft is happening on epidemic proportions.
Although using standard dispute letters may provide some level of positive results, their use also has the potential to further damage your credit. Moreover, the use of standard dispute letters usually only provides temporary results as the negative information removed from your personal credit file will most likely reappear on your credit file the next time it is reported by the creditor.

The second type of credit repair company generally appears to be much more legitimate. They will have a physical office but similar to credit repair company type 1, they only use the same standard dispute letters mentioned above. While typically not intending to operate illegally, compliance issues are usually overlooked. The largest difference between credit repair company type 1 and 2 is that the second usually makes use of an inexpensive software program that allows it to produce volume and handle clients on a much larger scale. The letters used are extremely generic and for that reason, will not get the best results possible. Although this type of credit restoration company may do a large amount of business, they are not setup to handle consumers that have specific credit related problems. This type of credit restoration company uses more of a cookie cutter approach.
The first two types of credit repair companies mentioned make up for more than 90% of the credit repair industry. Credit repair company type 3 and 4 are completely different and make up for less than 10% of the industry. It is very important to note the differences.

Credit Repair Company Type 3:
Not only is the third type of credit repair company usually compliant with the laws governing credit restoration organizations, but it is also usually well versed in the U.S. Code used to dispute negative credit items on the consumers’ credit document. Using more than simply standard dispute letters, this kind of company can be more powerful than the initial two. Because this kind of credit repair firm has such a fantastic understanding of the U.S. Code associated with charge, it is typical for this type of company to offer custom credit repair job to its clientele. The ability to offer custom work for the customers allows this type of business to go above and beyond the level of support supplied by the first two kinds of credit repair companies.

Credit Repair Company Type 4:
The forth type of credit repair company is very similar to the third kind in that it is generally compliant with national law, extremely well versed in the U.S. Code needed to be effective in the credit repair industry and typically also has to execute custom dispute function for its clientele. The greatest difference between credit restoration firm type 3 and 4 is that credit repair company type 4 has lawyers on staff or has been contracted by a law firm. Credit repair firm type 4 will also generally be more costly than the other three credit repair company types but will almost always be more effective. Not only can a lawyer established credit recovery company provide the best outcomes possible, but also a credit recovery organization that has lawyers on staff or has been contracted by a law firm can also apply the consumers’ rights should legal action be required to correct inaccurate items on a customer’s personal credit history. Beyond that, by utilizing an attorney established credit restoration firm, the customer can minimize the risk that an item will be re-reported by a creditor as an attorney has the ability to take extra actions to block negative items from being re-reported onto a customer’s personal credit history. There are not many credit recovery businesses that fall into this particular class.

As you can see, it isn’t just essential to discover a credit recovery organization that is staffed with subject matter specialists and has the ability to provide great results but it is also extremely important to find one that’s compliant with the guidelines put forth by the federal authorities. Further, you must now understand the advantage of using a credit recovery company that has lawyers on staff or has been contracted by a law firm. Your credit report has more of an influence in determining your financial future than most other things. You should not put your credit report at the hands of just anybody. Decide on a credit restoration company that’s compliant, well versed in the associated U.S. Code, staffed with subject matter specialists and lawyers or employs the services of a law firm.