All Credit Repair Companies AREN’T Created Equal

With a large number of credit restoration companies conducting business across the country, finding the right one can be difficult and intimidating nonetheless it is imperative that you make an effort required to not only find a reputable one but also find one that gets the knowledge, experience and ability to provide the level of service you expect and the perfect results you deserve. Your choice should not be impulsive. Choosing a bad credit restoration organization will leave you vulnerable and increases the probability that further damage will be caused to your personal credit history but on the other hand, selecting a good credit restoration organization has the potential to be one of the better financial decisions you will ever have by dramatically cleaning up your personal credit history and improving your credit history. credit score repair app There are numerous items to consider beyond price when coming up with your decision. Recognizing the difference between price and value is imperative as seeking assistance from an organization in the credit repair industry is nearly always a case of, “You get everything you pay for”. The following paragraphs explain the four types of credit repair companies that define the industry and what to expect from each.

Credit Repair Company Type 1:
The first kind of credit repair company is typically a one-man show run out of a home office. Generally, this kind of company advertises extremely low rates for their service and will will often have unbelievable service guarantees to top it off. It is not uncommon for this type of credit restoration organization to be a complete scam and take the consumers’ money without providing any service at all. Moreover, when you are dealing with a company that falls into this category you’re lucky if the only thing you lose can be your money and not your identity in the process. In this day and age, identity theft is happening on epidemic proportions. If you don’t know the company to be reputable, you need to think before handing over your individual identification information.

While all credit restoration organizations that fall into this category aren’t scams, it is very common for the individual running this kind of company to be completely unaware of the compliance all credit restoration organizations must stick to. The corporation will typically use 3 or 4 4 standard dispute letters that are extremely generic and not intended to be used in every situation. Although using standard dispute letters might provide some level of positive results, their use also has the potential to further damage your credit. Moreover, the utilization of standard dispute letters usually only provides temporary results because the negative information removed from your individual credit file will likely reappear on your credit history the next time it really is reported by the creditor.

Credit Repair Company Type 2:
The second kind of credit repair company generally is apparently much more legitimate. They have a physical office but much like credit repair company type 1, they only use the same standard dispute letters mentioned previously. While typically not going to operate illegally, compliance issues are usually overlooked. The biggest difference between credit repair company type 1 and 2 is that the second usually makes use of an inexpensive software program that allows it to create volume and handle clients on a much bigger scale. The letters used are extremely generic and so, will not obtain the best results possible. Although this type of credit restoration company can do a large amount of business, they are not setup to handle consumers that have specific credit related problems. This sort of credit restoration company uses more of a cookie cutter approach.

The first two forms of credit repair companies mentioned replace a lot more than 90% of the credit repair industry. Credit repair company type 3 and 4 are very different and make up for less than 10% of the industry. It is crucial to note the differences.

Credit Repair Company Type 3:
Not only is the third kind of credit repair company usually compliant with the laws governing credit restoration organizations, nonetheless it is also usually amply trained in the U.S. Code used to dispute negative credit items on the consumers’ credit file. Using more than just standard dispute letters, this type of company can be much more effective than the first two. Because this sort of credit repair company has this type of good knowledge of the U.S. Code linked to credit, it is typical for this type of company to offer custom credit repair work to its clients. The opportunity to provide custom work with its clients allows this type of company to beat the level of service supplied by the first two types of credit repair companies.

Credit Repair Company Type 4:
The forth kind of credit repair company is very much indeed like the third enter that it is usually compliant with federal law, very well versed in the U.S. Code necessary to be effective in the credit repair industry and typically offers to perform custom dispute work for its clients. The biggest difference between credit restoration company type 3 and 4 is that credit repair company type 4 has attorneys on staff or is contracted with a law firm. Credit repair company type 4 may also usually be more expensive compared to the other three credit repair company types but will more often than not be more effective. Not only can a lawyer based credit restoration organization supply the best results possible, but a credit restoration organization which has attorneys on staff or is contracted with a law firm may also enforce the consumers’ rights should legal action be required to correct inaccurate items on a consumer’s personal credit history. Beyond that, by using an attorney based credit restoration company, the buyer can minimize the chance that an item will be re-reported by a creditor as an attorney has the ability to take additional steps to block negative items from being re-reported on a consumer’s personal credit file. There are hardly any credit restoration organizations that fall into this category.

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