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These questions will help you to review a credit repair service or agency, the services they offer, and the terms of the agreement to which you're entering. Be sure to consider several companies before choosing to do business with any organization.
Questions to Ask:
--What services does this company offer? Is it worthwhile to you to pay someone else to do something you can do for yourself for free? Credit repair companies cannot legally do anything to improve your credit that you cannot do for yourself.
--Does the company promise to remove bad credit information from your report? Remember that no one can legally remove legitimate bad credit information from your credit history. The only information that can be changed, amended, or corrected is incorrect or outdated information.
--Does the company freely disclose their fee-schedule and cost of service, including monthly fees, per-service fees, and other costs? Is an advance-fee required before they will take your case?
--Does the company offer an unrealistically quick solution to your credit problem? Only time and a conscientious effort to repay your debts will improve your credit report.
--Does the company clearly explain your legal rights and what you can do for yourself for free?
--Does the company prevent you from, or recommend that you not contact a credit bureau on your own?
--Does the company suggest that you try to invent a "new" credit report by applying for an Employer Identification Number to use instead of your Social Security number? This is not a legal solution - it is a federal crime to obtain an Employer Identification Number from the IRS under false pretenses.
--Does the company advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity? Be very cautious! If you follow illegal advice and commit fraud, you may be subject to prosecution.
--Does the contract include specific information about: 1) the payment for services, including their total cost; 2) a detailed description of the services to be performed; 3) how long it will take to achieve the results; 4) any guarantees they offer; and 5) the company's name and business address? The Credit Repair Organizations Act requires that this specific information is included in your contract. Read carefully to be sure you understand the terms of your agreement and ensure the contract includes clear explanations of all required information.
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