Texas Land Attorney

Credit Repair - Does it Work?

A question that many would be borrowers are finding themselves asking lately is if Credit Restoration is an option. The answer, often, is that it can be.

The Credit Industry is tied closely to three large Corporations known as Credit Bureaus (Equifax, Transunion, and Experian). Each of these companies, if you have ever borrowed money, will have your address, social security number, employment history, and credit records. Their actions are regulated by the Federal Trade Commission.

The FTC correctly states that “self help” may be the best option for consumers who wish to correct their reports. To be able to perform the necessary actions, one must spend time studying the free resources available on the FTC’s website. If a consumer has the time to invest in the process, I too agree that the FTC is accurate in their assessment of credit report challenges. Often, as with other services (i.e. yard work, oil changes, etc…), individuals do not have the time and/or desire to handle the repair process themselves.

For those that do not wish to do the work themselves, they can hire a Credit Repair Company (often referred to as a Credit Services Organization). Many of these companies have been lumped together with a bad reputation that was built by a number of scam artists. While there are still a tremendous number of companies that take advantage of uninformed consumers, there are still others that provide a great service at a reasonable price.

In searching for a reputable company, you should confirm that the particular business is licensed in the State they exist (each State typically has their own bond and licensing requirements). You should also compare the fees of the company with others in your area. If the fees are excessively high or very low, then it could be a good sign of a problem. As with all companies, you should look to see if there is a file with the Better Business Bureau.

Credit Repair Companies will typically issue challenges to the three credit bureaus using your name. The results will then be provided back to you directly. It is important that you provide them to the Credit Repair Company regularly, or else they will never know what the results of the challenges are. Also, it is crucial that you provide the Company with any supportive information that you may have related to the accounts that are appearing on your report.

An alternative to using a Credit Repair Company is to use a local attorney who handles debt negotiations and credit disputes. A benefit of this route is that the credit bureaus recognize an attorney as an individual who can issue challenges on behalf of another person. For this reason, the attorney acts under their own name and on your behalf. Further, should you have additional needs (i.e. debt reduction/negotiation), an attorney can often handle the multiple issues simultaneously.

Under any option that you choose, the most important thing you can remember is to always pay all of your bills timely. Simply by being enrolled in a credit repair program does not mean that a consumer can cease paying their bills. If you make a decision to work on your credit, paying your bills is the most important foundation.