Do Credit Repair Companies Work?

it doesn't matter where we begin it

matters what we finish and in the case

of our credit score what we need to know

is if we are working to boost our credit

score is a credit repair company going

to be helpful or would it be best to get

some credit counseling to improve our

credit score going forward let's take a

closer look to find out if credit repair

companies really work my name is Andrew

Finney and my passion is to help you

make sense of real estate if you need

help finding a top agent near you or if

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thank you alright my friend let's have

an honest conversation about your credit

score and what steps you can take that

are actually going to work to boost your

credit score and how to know if a credit

repair company is going to be best for

you today we're going to talk about what

exactly is a credit repair company how

to verify a credit repair company is

legit how do credit repair companies

work how much does it cost to get credit

repair how long does credit repair

usually take and red flags to watch out

for the first thing to know is what is a

credit repair company a credit repair

company and usually promises that do all

the heavy lifting for you they'll go to

bat for you with the credit reporting

bureaus credit reporting agencies and

they keep saying they're going to make

things happen don't worry let us do the

heavy lifting it is important to note

that with credit repair companies they

do have a fee

now with credit counseling it's

completely different than credit repair

companies credit counseling is often

free it's something that you can go

through many nonprofit companies

throughout the United States or simply

Google credit counseling credit

counseling to actually teach you how to

set yourself up for future success and

won't cost you a penny while teaching

you how to boost your credit score in

the most practical way the reason I

bring that up is because the Federal

Trade Commission also known as the FTC

says that the credit repair company

industry is fraught with scams I don't

want to see you become a victim of a

scam whenever all you wanted to do was

increase your credit score the second

thing that you want to know is how to

verify if a credit repair company is

legit now fortunately in the age of

technology what do we have access to my

favorite thing in the world and

hopefully yours to Google we want to go

to Google we want to check out those

online ratings we want to check out

those online reviews and see what other

real people like you were saying not

those ones that we can very quickly kind

of go through and say hey

you know what that looks like that was a

paid advertisement there it looks like

at the paid testimonial could try to

give you guys some props when in fact it

may not have been the truth review it

with an open mind and find the objective

points cuz you're gonna probably find

some things that are really good you're

probably gonna find some things that

aren't so good at the end of day we want

to stack them and going back to our

friend Google why not just enter in

Google hey top credit repair companies

for the year that you're looking at top

row credit repair companies in the area

that you live and then at the same time

that you're doing that why not go ahead

and Google credit counseling so you can

kind of start comparing apples to apples

here and see which one's going to be the

best fit for you now of course if you

know credit repair specialists or if you

have any family or friends that I've

used them successfully why not talk to

them and see what their experiences were

working with them and who they chose to

work with while you're reviewing credit

repair companies to see which ones may

be right for you there are four red

flags to watch for the first red flag to

know about is any credit repair company

that promises you that they can remove

negative information from your account

that is in fact accurate that is a huge

red flag and a definite no-go the second

red flag is any entity that says that

they can create a new credit identity

for you your credit is your credit not a

credit identity your identity is your

credit whether it's good bad or

indifferent no one can legally set you

up with a new credit identity but third

red flag is a company that requests you

to pay it before it actually provides

its services now that would almost seem

like common sense like why are you gonna

pay for something upfront until you get

the goods that you have agreeing to

right there's different compensation and

different ways that these companies

receive renumeration for their services

but any of them that says hey pants

upfront and then we'll get to it that's

a red flag right there we both know

that's a scam and the fourth red flag is

anyone that's guaranteeing you that they

can get your credit score increased it's

hard to guarantee any boost in your

credit score because everyone's

situation is different and results will

vary person the person the third thing

you want to know is how do credit repair

companies really work most of these

credit repair companies are going to do

the same thing that you and I need to do

anyways with taking stock of our credit

score from getting an actual report from

Experian Equifax and TransUnion when

they get your credit report from the

credit bureaus then they're gonna look

at your file for primarily three things

the first one being charge offs the

second one being tax liens and the third

one being bankrupt

now obviously you probably already know

if you have these going on right now and

you may actually be disputing it with a

source right now so they're already kind

of telling you what something you

already know

right here the difference is is then

they're gonna send a plan into motion

about how to dispute it and how they're

you intend to get those items removed or

at least ways satisfied so that you can

move on with a better credit score

generally their plans are going to

include reaching out to the source of

the derogatory or remark to validate the

information to make sure it's accurate

the second thing they'll often do is

look for letters to dispute erroneous

negative marks if in fact those are

found and the third is to serve cease

and desist letters to debt collectors on

your behalf a fourth thing that they

might do but not all of them do is

actually suggesting to you the open up

new lines of credit now right here I

would urge you to use a little bit of

common sense and be practical with

yourself and be honest with yourself of

course if you're the person that already

has credit card debt and you're

struggling as it is to manage it

responsibly what's going to happen if

you open up new lines of credit let's

say that you could approve for it you're

likely the rinse and repeat the same

issue you're actually setting yourself

back we need to learn to use credit

responsibly and improve our financial

standing moving forward that being said

we need to be smart about the decisions

we make and to assume personal

accountability and take ownership of our

actions so that we can right the ship in

our life and move forward selling in the

direction that we wish to go please be

careful with what choices you make today

because they will impact you tomorrow

the fourth thing is how much do they

cost to work with them so when we're

looking at their cost it really depends

because you get some of them that are

gonna charge you like a monthly fee

somewhere between maybe $75 to $150 a

month they may or may not be worth it

it's up to you and how much your time is

worth and whether you want somebody

assisting you depending on how quickly

you can learn this and actually apply it

yourself but there are those credit

repair companies that will offer

different services available to you on a

monthly cost then there are different

types of credit repair companies that

will actually look for getting you

deletion letters and they could charge

you as little as $75 but up to like

seven hundred and fifty dollars for each

deletion letter it's able to obtain for

you so if you believe that a credit

repair company is best for you make sure

that you understand the cost associated

for their services and how it gets paid

out keeping in mind that

cannot charge you for a service before

they delivered the results to you the

fifth thing that you want to know is how

long does it usually take to see any

results now it is important to note that

generally the credit bureaus are going

to review you within 30 days of the time

that something is filed let's say that

they're going after deletion letter on

your behalf their credit bureau is going

to have 30 days to review it within 5

days they're going to be sending you a

letter as to the results of the

investigation whether they agree with it

and provided a deletion for the

derogatory remark or whether they

believed it to be completely frivolous

either way within 5 days of the

conclusion from the credit bureaus

you're going to know the results whether

it was good bad or indifferent to help

you get started if you're thinking right

now that hey you know what maybe a

credit repair company isn't the right

thing for me maybe I can actually learn

this myself go back to the idea of

getting credit counseling because it is

free and there's a lot of helpful tools

out there there's also three other

things that you can do right now today

to begin escalating your credit score

the first one being the review your

credit reports for any errors the second

one is really cool websites like Credit

Karma actually have tools inside of the

platform itself in the case of Credit

Karma they have what's called a direct

dispute tool when you find incorrect

information let's say on your transunion

credit report you can go ahead and make

that report directly from Credit Karma

you don't have a credit card account

it's free why not get one and the third

thing is to take the steps to build your

credit in the long term getting a higher

credit score is not an overnight process

getting a higher credit score generally

takes a little bit of time because you

need to establish a pattern of on-time

consistent payments over a period of

time when that period of time happens

the more consistent on-time payments

that you have to your creditors the

higher your credit score will become as

a result so if you're looking for a

overnight fix just know it realistically

doesn't exist let's make sure that we

get this right for you by being honest

right now with each other and with

yourself so that you can take steps to

getting a better credit score the next

thing that you want to know are some of

the red flags that you should be keeping

an extra watchful eye for it's important

for you to exercise extreme caution

before you proceed with a credit repair

company in fact in 2016 alone the CFPB

which is a Consumer Financial Protection

Bureau said that half of the complaints

they had against credit repair companies

involve people believing that they were


- whether it was a fraud or whether it

was a scam we don't want to see that

happen to you if you follow the

suggestions in our conversation today we

can make sure this doesn't happen to you

it is also important to know that there

are additional protections underneath

what's called a credit repair

organization Act it makes it illegal for

credit repair companies to lie about

their services and results and set some

additional rules as well if for some

reason you believe that you have been

the victim of a credit repair company

please go to the CFPB again the Consumer

Financial Protection Bureau and file a

complaint that link is in the show more

description below that make it a little

bit easier for you to get to the right

place so that you know where to go next

three additional measures of protection

that are afforded to you underneath the

credit organizations act are giving you

a written contract that explains your

legal rights and the services they will

provide the second is allowing you to

counsel within three days without any

charges or penalties the third is

fulfilling the promise service before

charging you or receiving any fees if a

credit company refuses to answers your

questions if they request a payment

upfront or fails the put promises in

writing dad's part of the scam test and

the kind of a scratch-and-sniff test to

know if is right for you or not then it

just means that there is something wrong

there now if they're not a day my friend

what I'm gonna ask you to do is before

you start entertaining credit repair

companies and believing the

song-and-dance that some of them will

hype up promising you the Sun the Moon

the stars in the world right what I'm

gonna ask you to do is get real with

yourself and why not take a look at

getting credit counseling it's free the

resources are available and you'll find

a link in the show more description

below that get started now if you would

like additional professional assistance

then okay maybe a credit repair company

is right for you

hopefully after our conversation right

now you're better prepared and more

knowledgeable but you should be looking

for in a credit repair company and the

questions you should be asking so now

let's take a look at the truth about

hang off collections that boost your

credit score and getting honest with how

many credit cards do we need anyways

look forward to our next conversation

will stain appeal