This is a particularly damaging myth, as the services of a reputable credit repair company are invaluable to the credit repair process. The most important word in that phrase is “reputable.” There are simple ways for wedding out the credit repair scams from the rest of the market, which largely consists of effective and trustworthy credit repair companies.
It is critical that you do some research on the credit repair company you are considering working with and make sure it follows the guidelines of the Credit Repair Organizations Act (CROA). This consumer protection regulation “prohibits untrue or misleading representations and requires certain affirmative disclosures in the offering or sale of credit repair services.”
There are a couple key consumer protections the CROA outlines include:
- You can’t be asked for upfront payment before the company provides a service.
- You are entitled to receive all contracts in writing.
- You have certain cancellation rights the company must notify you about.
While the CROA regulates the credit repair services, you still have a role to play in researching which firm is the best option.
Consider asking these questions:
- Does the company care about personal aspects of my story?
- Are they transparent about the process?
- Will they update me on progress and ask me to collaborate?
Finally, be very careful with any company that offers you a guarantee of results. This is a red flag to be on the lookout for, as well as an unlawful practice.
Approvology is one of the fastest growing and best reviewed credit repair firms in the US. Let us help you improve your life with better credit.