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All Credit Repair Companies Are Not Created Equal
by Richard Lawrence SEOWith thousands of credit restoration companies operating across the country, it can be difficult and intimidating to find the right one. However, it is imperative that you take the time necessary to find not only a reputable company but one that has the knowledge, experience and ability to deliver the level of service and optimal results you deserve.
Your decision should not be impulsive. Choosing a bad credit restoration organization leaves you vulnerable and increases the likelihood that your personal credit record will be further damaged. On the other hand, choosing a good credit reorganization organization has the potential to be one of the best financial decisions of your life by dramatically cleaning up your personal credit file and improving your credit score. There are numerous points to consider beyond price when making your decision. It is important to recognize the difference between price and value, as seeking assistance from a company in the credit repair industry is almost always a case of "you get what you pay for." The following sections explain the four types of credit repair companies that make up the industry and what you can expect from each.
Credit Repair Company Type 1:
The first type of credit repair company is usually a one-man show that operates out of a home office. Generally, this type of company advertises extremely low rates for their services and usually has incredible service guarantees to top it off. It is not uncommon for this type of credit restoration company to be a complete scam, taking customers' money without providing any service at all. Moreover, if you are dealing with a company that falls into this category, you will be lucky if you only lose your money and not your identity in the process. In this day and age, identity theft is reaching epidemic proportions. Unless you know the company is reputable, you should think twice before handing over your personal identification information.
Although not all credit restoration companies that fall into this category are scams, it is very common for the person running this type of company to be completely unaware of the compliance that all credit restoration companies must adhere to. This company typically uses 3 or 4 standard dispute letters that are extremely generic and not appropriate for every situation. Although the use of standard dispute letters can provide some level of positive results, their use also has the potential to further damage your credit. In addition, the use of standard dispute letters usually provides only temporary results, as the negative information that has been removed from your personal credit file will most likely reappear in your credit file the next time it is reported by the creditor.
Credit Repair Company Type 2:
The second type of credit repair company usually appears to be much more reputable. They have a physical office, but similar to credit repair company type 1, they only use the standard dispute letters mentioned above. Although they usually have no intention of operating illegally, compliance issues are usually overlooked. The biggest difference between credit repair company type 1 and 2 is that the second usually uses a low-cost software program that allows it to produce volume and handle customers on a much larger scale. The letters used are extremely generic and for this reason, will not produce the best possible results. Although this type of credit restoration company can handle a large amount of business, they are not set up to handle customers with specific credit-related problems. This type of credit remediation company uses more of a cookie-cutter approach.
The first two types of credit repair companies mentioned above account for more than 90% of the credit repair industry. Type 3 and 4 credit repair companies are completely different and account for less than 10% of the industry. It is very important to note the differences.
Credit Repair Companies Type 3:
The third type of credit repair company is not only usually compliant with the laws that apply to credit repair companies, but is also usually well versed in the U.S. Code used to dispute negative credit items on the consumer's credit file. By using more than just standard dispute letters, this type of company can be much more effective than the first two. Because this type of credit repair company has such a good understanding of the U.S. Code as it relates to credit, it is typical for this type of company to offer customized credit repair work to its clients. The ability to offer customized work for its clients allows this type of company to go above and beyond the level of service offered by the first two types of credit repair companies.
Credit Repair Company Type 4:
The fourth type of credit repair company is very similar to the third type in that it is typically compliant with federal law, extremely knowledgeable about the U.S. code required to be effective in the credit repair industry, and typically also offers to handle custom disputes for its clients. The biggest difference between credit repair company type 3 and 4 is that credit repair company type 4 employs attorneys or contracts with a law firm. Credit repair company type 4 is also usually more expensive than the other three types of credit repair companies but is almost always more effective. Not only can an attorney-led credit repair company provide the best possible results, but a credit repair company that employs attorneys or is contracted with a law firm can also enforce the consumer's rights when legal action is necessary to correct erroneous entries in the consumer's personal credit file. In addition, by using an attorney-led credit restoration company, the consumer can minimize the possibility of an item being re-reported by a creditor, as an attorney is able to take additional steps to prevent negative items from being re-reported in a consumer's personal credit file. There are very few credit recovery organizations that fall into this category.
As you can see, not only is it important to find a credit restoration organization that is staffed with professionals and has the ability to deliver great results, but it is also very important to find an organization that is compliant with federal government guidelines. In addition, you should now understand the advantage of a credit restoration company that has attorneys or works with a law firm. Your credit report has a greater impact on your financial future than almost anything else. You should not put your credit report in the hands of just anyone. Choose a credit restoration company that complies with regulations, is familiar with the appropriate U.S. Code, has professionals and attorneys, or uses the services of a law firm.
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About Richard Lawrence 
SEO
65 connections, 5 recommendations, 303 honor points.Joined APSense since, March 26th, 2019, From New York Mills, MN 56567, USA, United States.
Created on Mar 18th 2021 13:24. Viewed 263 times.
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