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Everyone finds a problem with credit scores and dealing with credit card debt. When this becomes a recurrent experience of missed payments, you start having a poor credit history which makes lenders wary of giving you any loans whatsoever.

There are a number of companies in the market that offer credit repair services. There are laws that regulate credit repair companies and also what they can and cannot do to fix a credit score. They work according to the Credit Repair organizations Act (CROA). There are certain companies that may promise credit repair services that are 'legal'. This is generally a marketing gimmick to collect fees upfront from unsuspecting customers.

A legally abiding credit repair firm will not collect any fees until the services are performed for the client, which may be a balance transfer, securing the credit card or consolidating the debt. Every individual approaching a credit repair firm has the right to obtain reports about their programs, their analysis of the credit situation and also to question the methods being employed. In a legal credit repair scenario, there is a contract that is sent along with a report in advance to the customer. There is also an option to cancel the services within three days of signing an agreement.

Any company that operates out of the guidelines set by the CROA is operating illegally and may ask to create a new identity or it may ask for the client to waive their rights. You can also approach the law in case you feel you have been misled on this. Before deciding on a credit repair company, it is important to look at the prior records of the company, their methods and charges and what procedures they follow. It will give you a better idea about the credibility of the firm. There are many illegal firms in credit repair and the Federal Trade Commission has records of them and handles miscreants in the matter.

It is important to be careful about the loans and financing options you choose. It is also necessary to obtain records of the credit reports every year from the credit bureaus. There are three main agencies that send these- Equifax, Trans Union and Experian. It allows a person to know their outstanding amounts and how the payments have been done. It gives the individual information about others who have seen the reports. It also has information on how well the payments have been done-within the stipulated deadlines.

Another way to fix your credit history is by going for a debt consolidation program. Rather than have to keep track of multiple cards, interest rates and different dates of payment, it is possible to consolidate all the balances under one card. Contact your debtors and tell them you are willing to pay and need some help. Debtors would rather have clients pay than declare bankruptcy and a mutual agreement can be worked out between both parties. There is a solution, but you must make the choice to find it!