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Credit Repair Counseling Has Lost Credibility |
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| Written by William Blake |
| Saturday, 20 September 2008 11:46 |
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If there is one financial service that has come to acquire a negative meaning in the US it is credit repair counseling. The blame for this rests squarely on credit repair counselors who have misled clients and abused the faith that their clients vested in them. The general refrain is that if you can repair your credit on your own then you should do so. Don't visit a credit repair counselor because you may end up sharing personal information that may be misused later. The honest truth is that such counselors don't better your credit score a great deal. Instead of bettering your credit rating, many such companies merely help you reduce your debt. Some counselors may even damage your credit rating. Even if you turn your payments in to him on time every month, you are at his mercy. If he makes the payments late, this will reflected negatively on your credit report. You would have been better off making the payments yourself. Some credit repair companies even go to the extent of mailing letters to credit bureaus stating that the information on their records is wrong. They demand that this information be removed from the report till a proper investigation is done. The credit bureaus, in full faith, remove the negative notations and wait for the actual report to come. The credit repair companies post the "clean" report to their clients, claiming that their credit standing has improved. It is another matter that all the negative notations return once the investigations are over. Not all such credit counseling companies are to be mistrusted, however. Some pride themselves on their credibility and can actually be quite helpful. If there are truly errors on your credit score, such as items listed twice, other people's items, or items erroneously still showing up as pending, they can help you to get them wiped clean. You do need to understand, however, that regardless of any claims a credit repair company cannot do anything more that what was just stated. It is impossible to remove negative aspects from your credit score if they are not mistakes. Such notations will be on your credit score for a total of seven years, with bankruptcy information showing up for more than ten years. Once again, giving private personal information to others, even to a credit rapair company, can be risky. If you want to be aware of your true credit score, your best option is to handle your credit matters personally. About the Author: Are debt consolidation non profit companies the best way to handle consolidation? Not always. Find out why on the Inside Debt Consolidation website
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