Can Credit Rating Organization Help you in fixing your Bad Credit Score

Wednesday, November 7, 2012

Can Credit Rating Organization Help you in fixing your Bad Credit Score

A bad credit is a nightmare and sometimes increases financial crisis. You can never apply for a car loan, mortgage loan, or other types of loans. Even if you pay off your loans, it takes years to fix your credit score. Many people wish that they could wipe off their bad credit score, so that they will lead a normal life. They either don’t intend to pay the loan or just want to repair their bad scores. There are credit rating companies that claim to repair your bad credit score, so that you can apply for a new loan. Indulging into such an activity is illegal and if caught then you might have to face severe legal consequences.

These companies convince you, that they improve the scores and clean up your bad credit ratings. You will be charged with a fee that is considerably higher. Most of the times, these companies disappear with your hard earned money. This off course will complicate the issue further, and might impact your credit score. You might end-up into a situation, which could be beyond repair. They claim to clean your credit scores, which is against the law.     Their promises are completely against the credit counselor’s guidance for improving your credit scores in the best possible manner. These counselors can help you in improving your scores, so that you can apply for new loans. Thus, you might have to be very careful while opting for CRO’s services.  

Services Rendered BY CRO:  

These servicing companies mainly offer steps to repair your scores, which are as follows –
  • They will ask you to get the latest credit scores or reports from 3 main credit bureaus like Equifax, Experian, and TransUnion
  • They will properly review the details of your report. If there is anything that needs to be disputed then, they will let you know the same
  • This company then contacts the particular credit bureau and challenges the report or entries in your report
  Incomplete Report:

The fact remains the same you will still have a credit remark on your report. Ideally, it cannot be taken off legally or illegally. The Fair Credit Reporting Act (FCRA) instructs these CRO’s to take off any negative, incomplete, unverifiable, or inaccurate remark from your credit remark. This has to done within a period of 30 days from the date it has been reported. Any report that is 7 years old needs to be taken off as well. In this case, the CRO doesn’t need a current report from any credit agency. If you come across any report that is either incomplete or inaccurate then you can file a dispute against the same. You will not be charged for filing any such dispute.

The credit company is required to investigate the issue and get it resolved as soon as possible. You can check for the list of services rendered by these CRO’s legally. It is thus recommended to check the credit ratings on a regular basis, so you can take an appropriate step at the right time. You can gather all the relevant information about these credit rating companies and their services. This will help you to fix up your credit score issue without having to spend enamors amount or fees.

  Services of Federal Trade Commission:

Federal Trade Commission has been since long, targeting many fake credit repair organization and has forcibly discontinued their business. These companies have been looting money from needy and poor people who want a better solution to improve their credit score. This commission closely monitors the activities of such organizations and ensures that they are not making fool of innocent people.    

Author's Bio:  

Robert is rated as one of the best bloggers when it comes to topics related to finance. 

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