While there are some credit repair services that are legitimate, the problem I've come to find with a lot of the services is that they are a complete waste of time due to the amount of time you are sometimes required to be enrolled in their programs "for best results". Months and months go by with you having to pay monthly fees for minimal work on their end.
Goodnatured is absolutely correct when he said "Educating yourself on the laws of fair debt collection and knowing your rights is the first step."
I say this because I just recently discovered a DIY credit repair system that is revolved around loopholes (legal) that many people know nothing about in regards to specific parts of the Fair Credit Reporting Act & Fair Debt Collection Practices Act. I had a friend tell me about it and I just recently started the process. She has increased her credit score from 550 to 725 in no time. The site is listed below but if anyone has any questions feel free to contact me. Like I said, I am new to the program but I am optimistic. I feel like I am at a point that I am willing to try improving my credit report on my own as long as it is legal and doesn't drain my bank account or waste my time in the process. _________________ secretcreditrepair.org
Subject: Is credit repair a scam?
Sat Jan 31, 2015 1:28 am
This is a myth that the media wants everyone to believe to prevent people from making the important step and fixing their credit. As long as you do your research and know the right questions to ask when interviewing a credit repair organization, you should be able to feel comfortable with your decision. There are many ethical and affordable credit repair organizations out there whose goal is to help those struggling with poor credit. Please listen to warning signs such as: We can permanently remove all negative items in 30 days even if they''re accurate. Listen out for companies that promise you a specific credit score because that is against the law since the organization does not control the results of the disputes or the credit scoring model used to calculate your scores. Listen out for companies that do not ask you for ID documentation to send along with your dispute letters. There are mandatory forms to receive like a notice of cancellation and your credit file rights, if you sign up with a credit repair company. Just know that there are companies who genuinely care and will do their best to help improve your credit status. If you want some more information on a great credit repair company, please reach out and I''ll be happy to share some info.')
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.