Is Credit Repair Legit? The Question Finally Answered
If you’re suffering from less-than-great credit, you’re here searching for ways to boost your credit. Credit repair is an option. But what kind of credit repair is legit, and what isn’t?
There are countless credit repair agencies in the US. Some of them are professionals with a proven method and track record. And some of them are little more than scams.
So it’s worth looking into what a credit repair company can and can’t do for you.
What is the Term “Credit Repair” Associated with?
When people say ‘credit repair’ they are usually referring to credit repair agencies or individuals that claim to be “credit repair specialists”. Both these companies and individuals are used as third-parties that improve consumers’ credit scores and reports for a fee.
Credit repair is the process of improving your credit score. Your score gets improved by removing derogatory entries and adding positive ones.
You can repair your credit yourself. However, you’ll be exposed to traps and common misconceptions. In fact, repairing credit requires actions that are counterintuitive. We won’t get into those details right now, but suffice to say that creditors and bureaus are complex. For that reason, it may be daunting for you to deal with them yourself. You’d be wise to seek out the help of people who understand the laws related to credit and consumer rights.
Is Credit Repair Legal?
Being in the credit repair business is legitimate but regulated. In addition to overarching federal laws, there are state laws regulating the manner in which credit repair companies can operate. In other words, specifics can vary depending on where you live.
But what laws make credit repair legit?
For starters, the US law regulates credit repair agencies via the Credit Repair Organizations Act (CROA), passed in Congress in 1996. This law was enacted because of the rampant scams that were being practiced throughout the nation.
A credit repair company that offers fair service is a company that complies with federal consumer laws: the Fair and Accurate Credit Transactions Act (FACTA), the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), the Fair Credit Billing Act (FCBA), and HIPPA laws.
If you are unsure about the legitimacy of the credit company you’re considering, here are some things to keep in mind:
● A legit company will charge you after the credit repair process: Agencies that charge a flat-rate fee should charge you after the work is performed. If the agency you came across charges a monthly fee, that price should cover the previous month of work, not the upcoming one.
● A legit company will inform you of your legal rights: Federal law requires credit repair agencies to inform you of the fact that you can perform the credit restoration process yourself.
● A legit company won’t claim it can delete accurate items from your reports: Repair companies that make false statements like this one are breaking the law. Moreover, it’s also illegal for companies to guarantee that they can remove negative entries – the best they can do is try.
● A legit company will always provide a written contract: Stay away from businesses that don’t. A fair-operating credit repair service is legally obliged to provide a written contract. As a client, you have the right to know the details of the process.
What Do Fair Credit Repair Processes Look Like?
Traditional credit repair companies typically operate with a “quantity” instead of “quality” mindset. They charge anywhere from 50 to 150 dollars a month for an ongoing service. They stretch out their service for as long as they can. The longer the process, the more money these companies can make. It’s difficult to believe that these companies have a strong incentive to get results quickly.
But professional companies employ aggressive and innovative approaches. A fair credit repair process means you get an estimated timeframe of your case up front. At White Jacobs and Associates (WJA), this timeframe never extends more than 6 months. We are in complete compliance with the law, particularly because we employ an in-house attorney and an investigative research team that is diligent in the legal pursuit of creditors and lenders.
If you find dealing with collection agencies, creditors, and credit bureaus overwhelming, reach out to one of our analysts. We offer legit credit help that starts with a free assessment. Even if you’re not a good fit for our program, we’ll give you some guidance. We’re not here to waste your money. Pair up with professionals today.