Should I use a credit repair service?

There are some benefits to using a credit repair company
and there are some real disadvantages too. The first thing
to think about is why you want to use a credit repair
service? Is it because you have bad credit that you want
to fix but simply don't know how? If this is true then try
reading a bit of information about how to fix bad credit to
see if you think this is something you can do.

If you don't have time to sit down, write letters and go
through the credit reports to see what you can dispute,
then a credit repair company is probably for you. A credit
repair company will take care of all the tedious tasks that
are involved in disputing bad credit marks on your credit
report. You should however make sure that you use a
company that knows the law so that they can properly
understand your needs.

To fix bad credit yourself, all you have to do is request
your credit report, read what's on it when it arrives, and
write a letter to dispute the bad credit that you believe
is unfair or untrue. At this point you can also write to
your creditors to try and negotiate a reasonable pay off
plan in return for removing the debt from your credit
history. When you pay a credit repair service, this is
practically all they do. Firstly they request your credit
report or reports, if they are requesting more than one
report from the three big credit bureaus.

When not to use a credit repair company

A good credit repair service will be upfront and honest
about what they can and can't do. They will be clear about
how much they charge and clear about what you will get from
the service.

A bad credit repair service will probably do some the
following:

* Try to confuse you with financial jargon so you don't
understand what they are doing
* Don't tell you what your legal rights are
* Tell you not to contact one of the credit bureaus
directly yourself
* Suggest that you try to invent a new credit identity and
then apply for a new credit report. This can be done by
applying for an Employer Identification Number (EIN) to use
instead of your Social Security number.
* Tell you to try and remove all your bad credit regardless
of whether it is true or not. If you do this and are found
to be committing fraud, you may be held responsible
yourself.

So if you are thinking about using a credit repair company
you should remember three things:

* Only inaccurate information on your credit report can be
removed. So if a credit repair service says they can
repair you credit 'guaranteed', this simply isn't true.
Credit repair companies have actually been successfully
sued for claiming they can remove bad credit when in fact
they can't.

* Credit repair companies can charge high prices for doing
something that is pretty routine, so don't pay big prices
because it probably isn't worth it.

* When a credit repair organization requests your credit
report, the credit companies won't accept any disputes
unless it is accompanied by a notarized power of attorney
that authorizes a licensed attorney or if the power of
attorney is unlimited and irrevocable. Alternatively you
or a family member can do it on your behalf.

Using a credit repair service can greatly help you to start
to repair your credit score quickly as they can quickly
identify where the problems lie in your credit report and
highlight any errors that may have been made.

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http://www.creditrepairshed.com