The FTC did not set out to do you wrong. Credit Repair is a service that many people can do themselves, just as many people service their own cars, and paint their own homes. The FTC also will tell you that many of the Credit Repair companies out there are "bad apples", and are only out to scam you out of your money. While there are some out there, many of which are not licensed, bonded, or members of the BBB. There are also many that are good companies. It's best to check with your department of commerce to verify if a company is licensed to do Credit Repair.
Credit Repair Good Guys
It is true that there are bad guys in the Credit Repair business. The last time I looked this was true of every industry without exception. As of lately there are only 10 active licensed Credit Repair companies in the state of MN. Feel free to check it out on the MN Dept of Commerce's website.
How Many Errors?
There are several reasons Credit Repair is an essential service in today’s world. Lately, everything is dependent on your credit score, your Job, your credit cards, your home, you name it! You might not think of credit reports as products, but that is exactly what they are, no different really from automobiles or computers. They are assembled, passed through a quality control process, and sold. Unfortunately, like many other products there are flaws.
The Obscene cost of Errors
The flaws in the credit reporting system can be as dangerous as a manufacturing flaw in an automobile. About seventy five percent of all credit reports contain at least one error. Credit report errors can lead to higher interest rates, loan denial, job denial, higher insurance rates.
Credit Repair Reality
Legislation they hammered out is called the Fair Credit Reporting Act (FCRA). In a way this is a consumer protection law, but it is equally intended to protect the three national credit reporting agencies we refer to as the credit bureaus. It is true that congress was heavily lobbied by the credit reporting industry during the creation of the FCRA. There are economic realities involved with running any big business and these must be respected.
Look Out For Yourself
Congress had little choice but to attempt to balance the need for credit-reporting accuracy with the economic restrains of quality control. The end result is simple. Credit reports are as accurate as they are going to get, and consumers’ better look out for themselves. The creation of AnnualCreditReport.com, the site where you can get your credit reports once a year for free, is a stipulation of the FCRA and an attempt by congress to provide us with an opportunity to manage our own Credit Repair efforts.
On the Other Hand
This is not to say that it is the best site to get your reports for free. On the contrary, in spite of my approval of the creation of the site, it’s really pretty difficult to maneuver. Personally, I’d spend a few bucks and get a simple tri-merged report..
Hire a Professional Credit Repair Company
Many people find the prospect of digging into the Credit Repair project just too much to handle. If you are busy and have enough going on in your life without taking the time to figure all of this out, just get on line and find one of the credit repair good guys, there are only 10 in the state of MN. There is plenty of Credit Repair help available if you need it. Either way, it’s your credit, so stand up for yourself!
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