Credit repair companies offer a service that can be beneficial to consumers with bad credit. There are a lot of credit repair companies out there, and it can be hard to know which one to trust. Here are five myths about credit repair companies that you should be aware of:
- It can remove negative information from your credit report:
It depends on the nature of the negative information. If the negative information is accurate, then the credit repair company may not be able to remove it. Negative information can stay on your credit report for up to seven years, and there’s no way to remove it. Credit repair companies may try to convince you otherwise, but they can’t deliver on their promise.
- Credit repair companies can help you get a new credit identity:
There are a lot of credit repair companies onthat offer services that will help you get a new credit identity. This means that you can start over with a clean credit file. The credit repair company will help you get rid of your bad credit history and replace it with a new one. The Federal Trade Commission (FTC) warns against using illegal methods to create a new credit identity. This includes using an Employer Identification Number (EIN) instead of your Social Security Number (SSN) or using a fake name. These methods are not only illegal, but they can also lead to identity theft.
- Credit repair companies can guarantee that your credit score will improve:
There’s no guarantee that your credit score will improve after working with a credit repair company. In fact, there’s no way to predict how your credit score will be affected by the credit repair process. There are many legitimate credit repair companies that will give you your money back if your credit score doesn’t improve after working with them.
- Credit repair companies can get rid of all of your bad credit:
This is not true. Credit repair companies can help improve your credit score by disputing negative items on your credit report, but they cannot remove all of your bad credit. Bad credit can stay on your credit report for up to seven years, and there’s no way to remove it. Credit repair companies may try to convince you otherwise, but they can’t deliver on their promise.
- Credit repair companies are not worth the money:
While there’s no guarantee that working with a credit repair company will improve your credit score, it can’t hurt to try. And if you do see an improvement in your credit score, it will be worth the money you paid for the service.
Conclusion:
While the best way to improve your credit score is by paying off your debts and maintaining a good credit history, there are other steps you can take to improve your score. These steps include paying off debts, maintaining a good credit history, and using a credit repair company.