Overwhelmed by debt and fearful of losing their homes, some Kansas residents are looking for relief in the form of credit repair services. Some companies are credible while others are less than honorable. For Kansas consumers desperate to get their financial house in order, it can be difficult to differentiate between the two. Here are a few tips.
Let’s begin with the red flags. No company should flatly guarantee that your credit score will improve simply by hiring the company. If a credit report is free of errors, and the lenders are not open to negotiating payments, it will be difficult to raise a credit score short of paying off the debt. Reputable companies do not ask consumers to pay in advance. The Credit Repair Organizations Act provides that no money should be paid to these companies until all services have been completed.
Overwhelmed by debt and fearful of losing their homes, some Kansas residents are looking for relief in the form of credit repair services. Some companies are credible while others are less than honorable. For Kansas consumers desperate to get their financial house in order, it can be difficult to differentiate between the two. Here are a few tips.
Let’s begin with the red flags. No company should flatly guarantee that your credit score will improve simply by hiring the company. If a credit report is free of errors, and the lenders are not open to negotiating payments, it will be difficult to raise a credit score short of paying off the debt. Reputable companies do not ask consumers to pay in advance. The Credit Repair Organizations Act provides that no money should be paid to these companies until all services have been completed.
With that said, there are some reputable companies that provide relief for consumers. One sign that your company is reputable is that the consumer is in the driver seat concerning fixing their credit. Under no circumstance should a consumer be pressured to focus on an area of credit that would prolong the payment period and therefore make the company more money. A reputable company should have a convenient cancellation policy. Top credit repair companies often offer a month-to-month payment option. Reputable companies should make you pull your own credit report. The Federal Trade Commission forbids credit repair services from pulling a consumer’s credit report.
If a consumer has had a bad experience with a less than credible credit repair service, all is not lost. A bankruptcy attorney may still be able to help. A Chapter 7 or 13 bankruptcy may allow the consumer to begin to rebuild their credit.
Source: The Huffington Post, “When to Trust or Not Trust a Credit Repair Service,” Sept. 24, 2014