Friday 21 June 2024

How To Protect Yourself From Credit Repair Scams

The economy has improved and real estate prices are on the rise. If you have decided to apply for new credit cards, home mortgage, an automobile, or rental property, be aware your good name and reputation are now more important than ever. Today, many creditors apply tighter lending guidelines, making it so challenging for millions of Americans to borrow money.

How To Protect Yourself From Credit Repair Scams

Credit Scores

The terms credit repair, credit rehabilitation, and credit restoration are used somewhat synonymously. Those who have bad repayment histories cannot ignore the advantages of credit repair.

Both traditional banks and mortgage lenders, auto finance companies and credit card issuers, credit unions all have established stricter requirements. Borrowers who have low FICO scores are likely to be denied. Also, they will have to pay higher interest rates than those who have excellent credit. So, having a strong FICO score is of immense importance nowadays.

If you are looking for opening a reliable and secure credit repair merchant account, consider turning to eMerchantBroker (EMB). EMB is voted the #1 payment processor in the US and boasts and A+ rating with the BBB.

Hiring a Credit Repair Company

The majority of credit service organizations or credit repair companies specialize in consumer credit restoration and issues regarding identity. These companies utilize laws enacted by Congress that imply disputing negative, obsolete, fraudulent and erroneous information associated with consumer credit profiles.

Credit repair companies particularly utilize the Fair Credit Reporting Act, the Fair Credit Billing Act, the Fair and Accurate Credit Transactions Act, and the Fair Debt Collection Practices Act. A reputable credit repair company should:

  • Help submit disputes electronically, verbally and in writing to consumer reporting agencies. Disputes should also be submitted to creditors, collection agencies, third-party record providers, and state, federal, and local regulatory authorities.

  • Act better with regard to consumer driven disputes as they can use the education-, knowledge- and a source-proven method that average consumers aren’t aware of.

  • Possess a provable track record of results regarding the modification/removal of:

  • bankruptcies

  • credit inquiries

  • collection agency entries

  • derogatory accounts

  • erroneous and inaccurate judgments

  • liens

  • mortgage foreclosures

  • personal identifiers

  • short sales

  • student loans

And other transient data from consumers’ credit reports.

The credit restoration process may last many months, but some results should already be visible within the first 45-60 days for most people.

It is important to note that the majority of credit repair companies are not law firms and that their employees may not have a license to practice law. In this case, even a reputable company can neither provide legal advice, nor represent a consumer before a court or in a legal proceeding. If legal representation is required, an appropriate attorney referral should be provided by the credit repair company for a consultation.

When hiring a credit repair company to restore your credit, do not forget to check them out before applying so to stay away from scams.