Should I Use a Credit Repair Organization?

Credit Repair Organizations or CROs, can be a dangerous trap that often leaves your credit and your finances in a worse condition than when you first came to them.

Should I Use a Credit Repair Organization?

Here at Auto Credit Express, we’ve been helping people find auto financing with bad credit and rebuild their credit since 1999. During that time, we have only found one magic bullet to credit worthiness, and that is hard work and time.

That’s why when we see yet another credit repair organizations advertise the impossible, to wipe out your bad credit in an instant, we shake our head and pray nobody falls for this wrong way to repair your credit

Beware the Credit Repair Scam

Any credit repair organization that promises you the impossible, a clean credit record overnight, is lying. The fact of the matter is though; it is illegal to remove accurate information from your credit report, negative or otherwise.

If your information is inaccurate, you are legally able to contact your creditor to have the item removed from your credit report still. This is according to the Fair Credit Reporting Act also known as FCRA, and we frequently advise all our customers to check for themselves that their information is accurate and up to date.

These shady credit repair organizations have been the target for the Federal Trade Commission due to the sheer number of complaints they generate. Far too many consumers today have fallen for this gimmick.

Typically, the process Credit Repair Organizations follow has three steps.

  • First, you’re required to provide copies of your credit history from the three major credit bureaus.
  • Second, they’ll point out questionable items that you should dispute.
  • Finally, the CRO says they will contact the creditors to challenge them on the disputed items.

However many people will find that their credit never improves. In fact, many may find themselves even further in debt after paying hundreds for a service that has now simply vanished, moved, or gone silent.

The worst part? The steps that the CRO supposedly follows are all steps that can easily be done yourself and should be done on a regular basis for free.

A Better Way

There are several legitimate methods you can use to handle your credit if it does ever become problematic. Try one of these instead of falling for this frequent trap.

  • Seek a Credit Counselor
    Different from a Credit Repair Organization, a Credit Counselor will help guide you and show you what steps you need to take to repair your credit. They do not take the steps for you. Often, you can find these types of counselors free of charge.
  • Contact a Credit Consolidation Company
    Perhaps you have no inaccurate marks on your credit report, but you do have several debts. A consolidation company can help you take several of your debts and turn it into one consolidated amount. Oftentimes, the agreed amount that you pay will be less than what your total debt was in the first place.
  • Take a Larger Role in Your Finances
    Finally, be more active and aware of your finances and credit history. These should be places in your life that regularly receive your attention. This way you will notice the questionable items before it is too late.

There is no magic bullet to repair your credit over night. Part of our goal for the past two decades has been to help consumers like yourself become more self aware of your finances. That’s why we created our one of a kind application to help you find the best opportunities when you need to find financing for your next vehicle.

It only takes a few moments of your time to open the door to a better financial future; why not start now?

Posted on September 13, 2014 by in Credit Repair
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