3 compelling reasons why you shouldn't use a credit repair agency to fix your credit report

Duran Mueller
Apr 14, 2007
View Author Bio
Digg It Del.icio.us
Furl It Reddit
Google My Web

Having negative entries in your credit report? Looking for a credit repair agency to wipe out the blemishes. Stop! You could be heading for trouble. The three reasons listed in this article will open your eyes to the credit repair fraud. Read on to know how the credit repair companies are ripping you apart.

1. Credit repair companies take advantage fears of credit card holders with negative credit reports, and use it to fill up their coffers. To do this they aggressively market themselves as if they can get every single negative entry on your credit report removed. This is simply not the case. Naturally plenty of people see this as a great opportunity, aggressively marketing their credit repair companies to those in trouble.

2. They will charge hefty fees, upfront. Whether they succeed or not it doesn't matter, and they won't listen to you when they are unable to accomplish anything squarely blaming things on you. Some credit repair firms are outright scams. However, hard they might try to convince but the fact remains that credit repair companies do not have any special relation with the credit reporting companies. No insider contacts, no influential hands, no special powers. Don't get fooled by their claims. Credit reporting agencies do not endorse any credit repair firms.

3. Despite what the ads might lead you to believe, credit repair companies don't have any special relationship with the credit bureaus to make credit repair easier. They can't magically get negative entries on your credit history erased. Some credit repair agencies suggest you fraudulent means to get a new credit history. This could involve changing your identity and starting afresh. Can you imagine how dangerous that can be?

Generally a credit repair company will only do things that you can do yourself.

One popular strategy is to get a copy of your credit history and challenge every negative entry. While this may seem like the credit repair company is taking action, in fact it's quite likely that this will achieve nothing unless there's genuinely been a mistake. And in the end, you can get the report and challenge entries without any help.

All that a credit repair agency does is to get a copy of your credit report and challenge every negative entry in it. This is not a very complicated thing and can be done by a person very easily. Why pay huge sums to those credit repair agencies then?

A good strategy for credit repair would be to get your credit report regularly. Check every entry in that credit report. If you keep a record of every financial transaction you make it will be very easy to substantiate your claim with credit rating agencies. Staying within your credit limits and not over-borrowing will keep you at a distance from the negative entries in your credit report and help build your credit history.