Identifying the legitimate credit repair company

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Credit Card Applications » Research » Guides » Building Credit History » Identifying the legitimate credit repair company

Identifying the legitimate credit repair company


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Repairing a bad credit history can be a tough job, since the entire financial planning has to be changed to suit the situation. Some people may need external help to fix the credit and make a financial plan that reduces the debt, in a much faster pace. There are many companies that help individuals who need to fix their credit scores, and bring them back in the good books of credit. Some companies take undue advantage of individuals in a debt situation and promise them to clear their debts and improving their credit scores. Legitimate companies can help people manage credit scores and strike a deal with the credit card companies, on the debt closure. Individuals must be informed about the fraud companies and recognize if the company is legitimate, before signing a deal with the company. Below are some tips to help people recognize a legitimate company. Communication All legitimate credit repair companies will have conversations with the credit card companies in the presence of their clients. They will at no point of time, suggest that the clients cut off communication with the credit card companies, and that they will handle all communication. If a company does this, then more likely, it is a fraudulent company. False promises Credit card companies cannot wipeout a complete credit history, or any entry in the credit history for that matter. Legitimate credit card companies do not promise the clients that they will erase the complete credit history and help them start afresh. Credit repair companies do not have the authority or access to do this. All that the credit repair companies can do, is to help the clients come to a settlement with the credit card companies regarding the outstanding balance, and help them reduce it as much as possible. Some credit repair companies ask their clients to apply for credit cards without issuing a social security number. This is a sure sign of the company being fraudulent, since it is not legal to do so. Also, they may suggest the clients to purchase a credit card from them in order to fix the credit score. The new credit card, unless a balance transfer card, does not help build a new credit history, but in turn add to the existing debt condition and contribute to bad credit score. Payment A big give away about a credit repair company is the way it handles the payments. Legitimate credit repair companies never demand complete payment unless the service is first provided. They may require an advance amount, but never the complete settlement of the bill. If a credit repair company demands a complete settlement from the client, it is more likely that the company is a scam. It is always better to get a comprehensive list of services that the company promises to provide as a contract, before even paying the advance amount. Repairing credit is more an individual effort than a company`s. Before choosing a company to fix the credit, it is a good idea to try to fix a financial plan and try it for some time.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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