Credit Repair Firms - Why you Dont Need Them

By: Jon Arnold

You see the ads all over town and many places you surf to on the Internet - fix your credit now. The advice is sound and well founded. In today's society, a consumer's credit score is being used for many more things than just for a lender to make an informed decision about whether to approve a request for a new line of credit or a credit card. These days, a consumer's credit score is used by many employers before they offer a job to a potential job candidate, and carries almost as much weight as that candidate's qualifications for the job. Car insurance companies use a consumer's credit score to determine how much they should charge for car insurance. This is supposedly due to studies done by the insurance industry which shows that people with bad credit have significantly more claims filed than those with good credit.

So you should be able to easily see why it is important to keep your credit as clean as possible, and if you have bad credit, to take steps to fix it. Even if you have "ok" credit, good credit should be a goal of every consumer.

But do it yourself. There is nothing that a credit repair company can do that you cannot do yourself. Most times, a credit reporting agency will not even talk to someone else about your credit, or if they will, they will first insist on seeing a document that says this company has your permission for them to talk to the company.

Note that you are leaving yourself wide open for a case of identity theft. You have given this credit repair company permission to represent you, and they therefore have every bit of information about you that would be needed to very easily steal your identity. They have your address, your date of birth, your phone number, your social security number, probably your driver's license number, as well as the account numbers of many of your financial obligations. From this point, it is an extremely easy step for them to go to the next level and steal your identity, since you have willingly given all this personal information to a complete stranger, perhaps based solely on a web page that you saw or a billboard or newspaper advertisement. Is that really a smart idea?

Most of these companies rely on the fact that you do not know that there are laws in place to protect you. The credit reporting agencies take no responsibility for the accuracy of the information they distribute from credit inquiries. Their view is that they only report the news, they do not make it, and if a creditor reports financial information about you incorrectly, then it is reported incorrectly for years, since there is no mechanism in place to automatically fix the incorrect information.

Again, a credit repair company cannot perform magic and they cannot do anything more than you can do yourself, except collect the fee you pay them. If there is negative information on your credit report and it is accurate, it must be reported, and a credit repair company has no power to get it removed, despite what they may claim.

Credit repair companies are not evil or dangerous for the most part, but they are relying on the uninformed consumer believing that they can fix the consumer's credit, where that consumer does not realize he can do all this himself without paying their fees.

Find out what you need to know about raising your credit score and the steps you need to take to make that happen. It will take time and effort to accomplish, but it does not require you to pay a fee to a credit repair company.

Most Read Articles On
"Credit Matters"
Top Searches on
Credit Matters
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Credit Matters
 



Share this article :
Click to see more related articles