CREDIT REPAIR COMPANIES, CAN THEY OR CAN THEY NOT REPAIR YOUR BAD CREDIT?

As of late I have seen an abundance of advertising for companies claiming to be able to repair bad credit.  I know this is not something new, but a "service" that has been around for many years.  With the uncontrollable amount of bad credit resulting from the economic turn of events that this nation has been suffering for the past 4 plus years, these companies have surfaced like an invasion and of course are very popular especially with families that have been suffering because of bad credit due to foreclosures, short sales, bankruptcies, etc. Our whole financial system is based on CREDIT.

No credit and worse bad credit makes it extremely difficult to purchase on credit and to even rent an apartment.

Now there are companies out there offering many "fixes"

that are not possible. 

For example have you heard?

"Give us 90 days and we will repair your credit" 

"We can remove liens, judgements, bankrupcy, negative credit from

your credit report"

"100% satisfaction.  We will clean up your credit"

Like these 3 advertising gimmicks, there are hundreds more

that are in essence misleading the consumer.

The most vulnerable to this misleading information are consumers

who have had a bankruptcy and are trying to start over again, and consumers who have had bad credit and are trying to rebuild better credit and better credit scores.  Keep in mind that generally bad credit is reported to the 3 active credit bureaus.  Equifax, Experian and TransUnion.  The bad credit has to come off all 3 bureaus. 

There are companies out there that may claim to be able to clean your credit, but you may become a victim of theirs instead of a client.  There have been documented cases where the so called "company" takes the clients hard earned money and runs.  Does absolutely nothing except leaving the client deeper in debt and feeling violated, robbed, lied to, well you get the idea.

Now with this knowledge in hand what can be done?

From my research and from my experience, I would interview several

credit counseling agencies.  They should all give you the same advise and not guarantee you a thing.  Credit repair is very difficult.

Credit reporting agencies do many errors and refuse to backtrack on those errors unless you have documented proof that they are wrong.

Let me give you an example.  I have a husband and wife that HAD excellent credit.  They had to move from one city to another because of the husbands job.  The couple tried on repeated times to negotiate with the bank for a loan modification so they could rent their house until the market got better then sell.  Great, but the bank refused to modify because of there excellent credit.  They hired me to sell their home as a short sale which I did.  After the sale the bank reported the sale as a foreclosure.  My client got on it right away and tried to get it fixed and reported as "debt satisfied short" which is the way a short sale is reported.  NOPE! Now they reported late payments which was not the case.  They always kept all their payments up even through the short sale process.  Let me tell you that this situation started 5 months ago and is still not resolved.

A perfect example of a major bank reporting incorrectly.

The truth is that no one can legally remove accurate negative information from a credit report.  Credit reporting agencies are obligated under the Fair Credit Reporting Act (FCRA) to correct or delete inaccurate, incomplete, or unverifiable information, usually within 30 days. They are not required to remove accurate information unless it is more than seven years old (or bankruptcies that are over ten years old).  This is the reality of the situation.

The consumer has a right to dispute the negative information reported on the credit  report and the credit reporting agencies must investigate the negative report at no cost to the consumer.

You the consumer can do all this.  It takes time and patience but you can work towards cleaning up your wrongfully reported negative credit at little cost to you.  This is exactly what a credit repair company will do.  Remember, they can not get negative credit reported correctly removed.  NO ONE CAN.

In my next blog I will write more in depth regarding "scamm" companies trying to rip the consumer off promising clean credit. 

Blog written by Marilu Nieto, The Home Biz Diva, an experienced Real Estate Broker having helped countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at ConsumerDebtReliefReview.

I WAS SEARCHING FOR FINANCIAL FREEDOM AND I FOUND IT AT BestMoneyMakingOnlineSite