Fast Credit Repair, Is It Possible?

by Mark

I keep receiving questions from followers of this site as to whether or not fast credit repair is possible.

The Web is full of credit repair companies, credit repair attorneys, and credit counselors promising to fix your bad credit quickly. Most, if not all of these companies promise that they can raise your credit score fast by erasing negative information. It all sounds very tempting, and you may toy with using these quick-fix schemes to boost your score. And why wouldn’t you? Bad credit can negatively impact your ability to rent an apartment, buy a home, or even get a job.

However, don’t allow yourself to be lured in. There are no easy fixes. Remember that most of these companies make their money by charging your a monthly fee to repair credit report.

Some of the more unscrupulous credit counselors may recommend that you not speak to the credit bureaus directly, create a new credit identity, or require payment upfront before they provide a service that will never take place. Don’t follow this advice. In fact, if you attempt to craft a new identity you could be on the hook for fraud.

Unfortunately, many consumers were casualties of this types of tactics from credit repair companies. At least 2.1 million consumers fell victim to credit repair scams, according a Federal Trade Commission (FTC) statistical fraud survey.

A reputable credit repair organization gives you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. You should also receive a written contract that spells out your rights and obligations. The FTC recommends that you read these documents before you sign anything.

Before signing any type of contract , know that a credit repair company can’t do the following:

  • Make false claims about their services.
  • Charge you until they have completed the promised services.
  • Perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees.
  • Before you sign a contract, be sure it specifies:

    • The payment terms for services, including the total cost.
    • A detailed description of the services the company will perform.
    • How long it will take to achieve the result.
    • Any guarantees the company offer.
    • The company’s name and business address.

    If you suspect that you’ve been duped by fake credit counseling the FTC recommends you contact your state law enforcement officials. Contact your local consumer affairs office or your state attorney general (AG). Many AGs have toll-free consumer hotlines — visit  www.naag.org for a list of state attorneys general.

    What’s more, you must begin the process of repairing your credit immediately. If you haven’t done so already, obtain a copy of your current credit report and credit scores. If you see that there is inaccurate information on your report, dispute it in writing..

    Credit scores are an important part of your financial life and it’s not impossible to fix negative or bad credit scores. However, it won’t be done over night. Don’t fall for scam artists false promises of fixing bad credit fast. Repairing credit takes financial discipline and patience.

    Until next time,

    Mark

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