Over the years many credit restoration companies have popped up. Some are excellent, legitimate companies that offer a great service and some are scams, just like any other industry. Credit repair is a service that you can do on your own. But, it's time consuming, confusing, and it's easy to give up on it. There are plenty of reasonably priced credit restoration companies out there that can do the work for.
What exactly does a credit restoration company do?
Credit restoration companies use what's called the fair credit reporting act to help get negative items deleted from your reports. The FCRA (fair credit reporting act) is a law that is supposed to protect us as consumers from unfair credit reporting. This law demands that certain steps be followed by a reporting agency before an item is reported on your credit reports. Unfortunately, many creditors and collections agencies don't abide by this law. A credit repair company can go in and find the negative items that are being reported and have them deleted from your reports. Now if a credit repair company claims that they can remove ALL negative items from your reports whether they are accurate or not … beware. This is an illegal claim. No credit repair company can legally claim to delete 100% accurate and verifiable information.
So, why should you hire a credit repair company?
Approximately 80% of credit reports contain errors and inaccuracies that can drag down a FICO score. Do you know if everything on your report is being reported 100% accurate? Do you know if all the negative items on your reports are 100% verifiable? If not, then you should consider using a credit repair agency to start investigating those items. On average, people who participate in credit restoration programs see 10 negative items deleted within 90 days. It's pretty sad that we can't trust the bureaus and collections agencies report our credit in an honest and ethical way. But, fortunately there is a way to deal with it.