Problems with Credit Repair Services

There are numerous companies in the credit industry that target consumers who have poor credit with assurances that the company can clean up an individual’s credit to help improve their credit score or help them obtain a new loan.  The sales pitches from these companies sound encouraging, especially for those individuals that have poor credit or have had a bad experience due to their poor credit and poor credit scores.

Unfortunately, most of these companies can not deliver on their promises or significantly improve a credit report using the tactics they promote.  In fact, the Credit Repair Organization Act was passed by Congress to protect consumers from deceitful practices by organizations who claim to repair credit and to help further restrict these organizations from ripping off consumers.

The Credit Repair Organization Act prohibits fraud and misleading practices by credit repair companies and establishes rules regarding compensation and disclosures to consumers who user their services.  The Act states that services must be under written contract, which must include a detailed description of the services and contract performance time and spells out the consumer’s rights and obligations.  The credit repair organizations are also not allowed to receive payment before any promised service is “fully performed.”

The Credit Repair Organization Act further states that credit repair organizations must give consumers a copy of the “Consumer Credit File Rights Under State and Federal Law” before they sign a contract.  And now, many states have laws regulating credit repair companies as well.

Even though these organizations have a somewhat tarnished image, just because you have a poor credit report doesn’t mean you can’t get credit or assistance improving your credit history and credit score.  Even without the heavy regulation and the poor image, these organizations are charging consumers for something they can do for themselves without charge.  Free credit score help is the solution, not being charged for questionable services.

Free credit score help comes mainly by removing incorrect information from your credit file ( regardless of how small the inaccurate information may be ), getting outstanding debt balances and court judgments removed from your credit file by making agreements with the creditor to remove the account based on a settlement and rebuilding a good credit history with new accounts in your credit report.

The keys to improving a credit report and credit score are based on obtaining access to a free credit report which every consumer is entitled to by law, disputing and correcting inaccurate information in your credit report and improving and building a better credit report.

You don’t need to pay a credit repair organization to improve your credit, nor do you need to pay for service to help improve your credit score and credit history.  The Credit Repair Organization Act was passed because of the volume of complaints in the industry and the misleading practices.  Take advantage of all your rights and improve your credit score on your own for free.