Does Credit Repair Really Work?

Keys to finding the right Pro

In the expansive online world, you have access to all kinds of information at your fingertips. Remember, you can't believe everything you see on the internet. So, how do you know if credit repair is legit or if you are dealing with scammer? Let's take a look at how Jana and Sam's credit improvement journey led to success and how you can find the right professional to work with. Their story begins with the harsh lessons learned from years of struggling with high-interest car loans. You know the places we're talking about. The buy-here pay-here lot that will finance a 06 Chevy Tahoe with 160K miles for 5 years. You know in your gut that it's going to breakdown before you've paid it off, but they don’t check credit and you don't feel like there are any options. Read on and see how close your story relates to Jana & Sam and learn about some options you didn't now about...

Their Story

Jana and Sam are your typical American family. As a hardworking couple, they understood the value of the money they earned. Like many others living paycheck to paycheck, they lived in an affordable neighborhood with their 3 kids. They were proud that they were able to provide a home for their family and were committed to instilling those values into their children. Despite the daily grind, Sam and Jana faced financial hurdles, particularly around birthdays and Christmas and of course every time their cars broke down.

Tired of the struggle, high-interest car loans, and burden of a few mistakes on their credit reports; they were inspired to make some changes. Hoping these changes would create a more stable financial future for themselves and their growing family, Jana & Sam embarked on a journey of improving their credit. With access to so much information online, they weren't sure what was right or wrong and didn't know who they could turn to for the truth.

Jana and Sam's Revelation: Seeking Professional Help

Recognizing the need for a solution quickly, Jana and Sam began a journey to overcome their credit woes. Tired of the high-interest car loan struggles and the burden of derogatory accounts on their credit reports, they sought assistance from a reputable credit repair firm. This decision marked a turning point in their financial future.

After searching the internet, they came across a company that helped them feel more comfortable. You see, this company offered some real tips and resources that made sense and helped them learn about the importance of knowing how a score is calculated. They learned that the payment history they were so focused on fixing was only a small part of the big picture of their credit score. In fact, it's only 35% of the overall score. While it is important, they also saw value in learning how to manage their accounts.

Having access to that information helped them in the decision-making process. So, they started the program and found that working with a credit repair professional made the seemingly daunting process remarkably simple. Jana and Sam found comfort in the expertise and reliability of the company, allowing them to focus on the path to credit improvement without unnecessary stress.

Impact on Jana and Sam's Financial Recovery:

As Jana and Sam navigated the credit repair journey, they witnessed a positive transformation in their credit reports through the guidance and information learned through the company. They focused on their budget, cut back on spending, and used their credit accounts as tools instead of extensions of their spending money. Additionally, the derogatory accounts on their credit reports were addressed, and a few accounts were removed which helped increase their score even more. The process was more than just a fix; they now had confidence in their finances. The simplicity and trustworthiness of the credit repair firm became the cornerstone of their credit improvement journey.

Jana and Sam's story is not just about overcoming credit challenges; it's a testament to the value of seeking professional assistance. By working with a professional credit company, they not only repaired their credit but also gained the knowledge and confidence in their finances moving forward. Let their journey inspire those seeking a reliable credit professional on their path to financial freedom.

Here are 5 warnings when searching for a credit repair company

1. No Money Up Front:

One of the most obvious signs of a credit scam is costly up front charges companies tack on before doing any work. In fact, there are regulations against upfront charges in credit repair, so watch out. I have seen some companies charge several hundred dollars up to several thousand dollars to "fix your credit". Some companies may have a processing fee to get started, and that's ok, but make sure you know the process and what they are doing. More about that later.

2. Legitimate Company vs Scam:

Legitimate credit repair companies will leverage State and Federal consumer rights laws like the Fair Credit Reporting Act, fair Debt Collections Act, or compliance issues in the reporting process like Metro II. Others however, will try to remove accounts based on a "credit sweep". This is a process of removing all negative accounts by having you submit an affidavit claiming accounts are fraud. This is illegal, and may end up costing you thousands of extra fees for legal issues arising from their actions. Specifically, if they require you to falsify a document stating that it is fraud, when it is not.

If you have legitimate identity theft or fraudulent charges on your credit profile, don't be afraid to dispute it. In fact, make a police report of the incident so there are more records. The more information you have the easier it is to fix.

3. Understand The Process:

In the confusing world finance and credit, there are some less than reputable companies out there. It is important to understand the process of how the credit repair pro is working on your credit profile. By law, the credit reporting agencies have 30 days to process dispute claims. There are circumstances that can extent the timeline, but a good guideline is the 30-35 day time window. Also, the dispute process isn't generally one letter and done. Sometimes it takes some back and forth to request information.

4. Communication & Transparency:

You want to make sure you know what is going on with your credit profiles, because there are scammers out there that will charge upfront, like we discussed in tip #1, and others that can get you into some hot water with creditors or government agencies. Additionally, you want to understand where you are at in the process. Some companies just want as many people as possible to sign up for on their subscription charging you for as long as your are willing to let the payment process. Our company has a portal for clients to access their credit profiles and see where they are in the dispute process. Remember, credit scoring isn't like a stock ticker that changes every second. So you won't have to watch it like a hawk, just keep in touch regularly throughout the process and you will be fine.

5. Educational Resources:

Many credit repair companies focus on pushing out dispute letters only. In our opinion, this is covering the symptoms instead of fixing the problem. Since only 35% of your score is based on the history, we might as well teach you how to improve on the remaining 65%, beyond just "pay your bills on time." Make sure your credit pro as a education plan to help you learn how to manage your credit profile instead of just living with it.

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