Thursday, 21 August 2014

Review of Risk Factors in Credit Repair for Credit Report

Review of need and risks

In this review of risk factors one faces when conducting credit repair for his or her credit report, we are going to see the following things.

i)              Need for credit repair companies
ii)            Need for good score on credit report
iii)          Keeping your rights in this regard
Let us review all points. One cannot argue against need for a credit repair company. Certainly, they help mostly because they are experienced in this field and they know people who are there. If you need to approach a credit lending agency and get your credit score altered they would be able to help you out immediately.

Essentiality of good scores

Secondly, there is a great need for a good credit score. Every credit problem arises out of this. To keep your score up, you need to follow certain guidelines such as:
1)   Keeping within credit limit
2)   Paying off debts immediately
3)   Rectifying mistakes that appear at once

Help given by credit repair agency
In reviewing all these things, you can use a credit repair agency if you are not aware of how to proceed. They will guide you and get work done. However, here is a word of caution. Do not pay them for anything they promise to do. Anything they do must be written and signed by them in a legal contract. You should have access to all their working conditions and you must have knowledge of when your contract is expected to finish. If they fail in any aspect, you can take them to court and sue them for damages.

Check for mistakes
Lastly, you have to review your credit report for any fallacies that may appear. If you spot any mistakes, you have to report it at once in writing. Credit reporting bureau such as TransUnion or Equifax will send their investigating team to check up. Investigating team will have to submit their findings within a period of 30 days. If their findings show that there has been a mistake, then you can ask credit reporting agency to send a copy of these findings to all institutions that you have dealt with in past half year. Further, credit reporting agency cannot add or alter any more of detail present in report without review and assent of investigating team.

Legal aspect or rights

Credit Repair Organizations Act or CROA protects your rights as a buyer or consumer. This act decrees it illegal for any credit repair agency representing
you to take money for work they have not done. Any false promise is punishable under law. Under this, the concerned credit repair agency has to provide working agreement in print. This should include legal rights of buyer that is you. You will further eligible to terminate that contract without any expenditure within 3 days, if you so desire. This contract will also mention how long the credit repair agency will take to finish their work and what the total cost will be.

Reasons for occurrence of low scores

Normally low scores occur when you fall back on your payment, incur huge debts or increase your expenditure drastically. It may occur due to illness or if you lose employment. Sometimes, this happens when you buy something like a car or refrigerator. You can seek the help of debt relief agencies or resort to debt consolidation. This is another name for bankruptcy. You can also avail of credit counseling to help you understand how to manage your debts easily.

Limitations of all credit repair agencies

Thus you see in this review, taking the help of credit repair agencies will help you solve problems like running around and meeting credit lending agencies and talking to authority to get your credit score increased. However, there are limitations since they cannot alter anything reported already. They can only file a complaint and ask for alteration.

(All pictures in this article are from Pixabay Public Domain Photos)