Debt Consolidation Credit Counseling In Austin Debt Consolidation Credit Counseling In Austin

Find out more on Debt Consolidation Credit Counseling In Austin Now!

Thursday, January 1, 2009

Discover 5 Things To Know Before Hiring A Credit Repair Service

By David Wada

1) According to the latest figures, the average American has a credit score of 677. If that same individual's credit score rose to just 720, that family can save, on average, $421 per month or $5,052 per year on house payments, car payments, credit cards, etc.

2) A lot of people ask whether credit repair really works. The simple answer to that is, "Yes, absolutely." Millions of items have been removed from credit reports, and tens of thousands get deleted every single day (i.e. late payments, collections, bankruptcies, and foreclosures get deleted). A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake.

3) Although there are many credit repair companies out there...use caution and avoid being scammed. The Fair Credit Reporting Act guarantees any customer the credit repair process.

4) Be sure to ask for a written contract that spells out your rights and obligations. The Credit Repair Organizations Act guarantees that credit repair organizations must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign anything.

5) Read these documents before you sign anything. And before signing, know that a credit repair company cannot:

* Mislead you with false claims about their services

* Take your money unless they have finished the promised services (Not half way; but completely)

* Perform any services, and even after your signature is on a written contract, they must complete a three-day waiting period

You have the power and right to cancel the contract without paying any fees during this three-day waiting period.

Before you sign a contract, be sure it specifies:

* The total cost and the payment terms for services

* A description of the services down to the itty-bitty details the company will be performing

* How many days, hours and minutes to achieve their promised results...okay maybe not that specific, but really drill them on when the services will be completed

* All the company's guarantees

* Company title, phone number and business address

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home