Why Credit Repair Counseling Is Losing Credibility
By George M. Davidsberg
Legitimate repair services are losing credibility because of some unscrupulous companies that purposely mislead customers who put their trust in them to help them repair their credit.
It is widely believed that you can repair your own without the help of a repair service. The only real way to improve your rating is to improve your debt-income ratio and to pay your monthly obligations on time. You don’t need a service to help you accomplish this.
What most repair counseling services are actually offering you is debt reduction. Using this type of service can actually do more harm than good to your rating, as you will end up paying less than the agreed monthly amount and this will result in your payments being reported 30 days late month after month.
Another tactic that repair counseling services use is to send to the three reporting agencies letters stating that the negative information on your report is inaccurate, and demand that they remove this information. reporting agencies are required to remove this information while they investigate the claim that the information is inaccurate. While this investigation is going on the repair counseling service pulls your report and shows you that your score has improved. They then demand payment from you. After this has occurred the investigation at the reporting agency will result in the negative information being placed back into your file and you are no better off than you were before.
There are some repair agencies that are not out to scam you. These agencies will
legitimately help you to have incorrect information removed, to have information corrected when you have paid-off items that are still showing past due. They can also help you to have items listed twice removed, or items that are actually your children’s clarified.
When it comes down to it, this is about all a legitimate repair agency can do to help you improve your credit. No repair counseling agency can have negative items removed if they are correct. These items remain for up to seven years, or even longer.
The best thing to do is to handle your own issues. You have the right to contest incorrect information and you are in the best position to know what is correct or incorrect on your report.
George Davidsberg very often writes web pages on news relating to consolidation and loan. His publications on counceling are published on his site .
