Credit Matters and Credit Repair

Dedicated to all matters pertaining to credit and credit repair

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Location: Kentucky, United States

Jim Eastman is an avid writer and likes to write on various topics, especially those related to business and financial matters.

Wednesday, February 03, 2010

Credit Repair Software - a Useful Tool

I'm sure you're familiar with credit repair firms who work to improve bad credit for their clients. But have you considered the credit improvement process with the aid of credit repair software? Just what is it and how do you go about using it?

You can count on technology to simplify the most mundane duties. Credit score improvement is one of the most tedious of all tasks. Thus, the technology people created credit repair software, which is supposed to streamline the manual process to remove bad credit. Some say that it's highly effective, but others disagree.

Let's take a look into the pros and cons of this software.

The Pros

Ease-of-use - many people would rather use credit repair software in lieu of hiring a company to fix their credit, as it's easier to buy and install the credit repair software than to discuss their financial problems with strangers. there's always the frightening thought that you might go to the wrong credit repair "professional" and be scammed out of your hard earned money.

Usefulness - you can pretty much count on the software being very effective in helping you fix your credit. Since it is relatively easy to work with it, a lot of people think it's more comfortable working with it than with credit companies.

Fixed payments - the credit repair software can. There is no further cost, like there would be in regard to a credit repair agency. You can own the software to have to use as you please and will never have to pay another penny.

However that do require an ongoing monthly payment. But there are many advantages to these types of programs as well.

For these types of programs you will usually get fast customer support in the case of problems. no effort on your part is needed when new upgrades become available: it's all done for you.

The Cons

Customization necessary - while most sellers of this wonder software claim that it is intelligent and flexible, it's obviously not possible for it to manage the personalized difficulties of those people with problem credit. There are so many angles to improving a credit score that can be neither generalized nor ascertained in advance. That means you will still have to be in the driver's seat; and when you do so!

Learning curve - its efficacy is reliant upon the expertise of the user. similar to a highly advanced calculator - you can work wonders with it; if you're completely ignorant of the subject, it's worthless. For the layperson with problem credit, understand his credit score or grapple with a financial calamity, software to repair credit might present too much of a "learning curve."

So how you go about choosing a software program? There certainly are many from which to choose. The important thing is not to be "taken in" by the first one you see, nor be misled by the common misconception that you always "get what you pay for." The costliest and/or most popular program may not.

Shop carefully! Look at the various credit repair software programs available so that you can make the best possible choice.

Tuesday, December 29, 2009

Credit Repair Business - Search Carefully

There is way too much debate in regard to the credit repair business to just ignore it. The fact is, the reason that many people with bad credit are hesitant to hire a credit repair company, is the bad name associated with the credit repair industry. Nevertheless it's not true that all those who repair credit are dishonest.

There are a good many respectable companies who will do their very best to fix your credit and improve your credit worthiness. The question is how to determine which companies are trustworthy and how to avoid being taken in by the scammers who are ready to take YOU for all they can get. Contrary to the common wisdom, spotting a fraudulent credit repair business isn't all that hard. The first warning sign is if the credit company proposes to fix your credit score "quickly."

Since your credit score is calculated on the basis of your financial history, it's next to impossible to fix your credit in a matter of a few weeks. As soon as any credit repair business promises what you know is not possible, you should "dump" them, because they are definitely fraudulent!

Also watch out for these other signs that a company is fraudulent. The fraudulent companies, in most cases, will demand full payment from the beginning.

Under federal law fees may not be charged until services have been rendered. Regardless of how bad your credit is, do not pay their fees in full upfront.

A dishonest credit repair business is more than willing to use illegal methods. They will even counsel you to use illegal methods while convincing you that there is nothing wrong in doing so, as they know an "insider" who works for the credit bureaus who will cover their tracks.

Make sure you don't fall for these kinds of lies! Don't ever encourage any tactics in order to improve your credit unless it's 100 percent legal. Regardless of how desperate your problems are, they will become much worse if you go outside the law to try and improve your situation. You are primarily responsible when your credit report is repaired through illegal means; thus you could end up being prosecuted if caught in illegal activity. At the end of the day, it's not worth the risk!

An additional way to establish whether or not the credit repair business under consideration is reputable, is to ask them to counsel you in understanding the nature of credit repair. A trustworthy company will be pleased to provide you counseling and "hand holding" in your quest to educate yourself regarding credit improvement. A trustworthy business will work in the capacity of a facilitator, while a scam agency will be reluctant to provide information concerning the credit repair process.

Monday, December 21, 2009

Launching a Credit Repair Business

It takes very little money to start up a credit repair business - understanding of credit scores, a little money for company stationery and business cards, a phone, and a lot of ambition and patience! Patience and time are actually the most critical factors for this business. When credit improvement is your goal it's really your time you are selling, rather than your expertise, since the credit repair process is one that can be learned by just about anybody.

However it's a slow and tedious process, and in a lot of cases people just don't have the time to learn how to go about it. And thus it's important to be aware of the latest developments in new technological improvements that relate to the credit repair business. Using state-of-the-art software, you will save a lot of time and effort! With the passage of time, you'll be able to complete the task of improving credit, much faster and better.

Ensure right from the beginning that you develop a network of worthy professionals to back you up in your work. As a credit repair business, you can expand your services beyond credit repair alone! Your business reputation, is often a matter of how much diversification you can incorporate into your services. For instance, you might offer counseling services, loan modification, and debt settlement. You can do these yourself, or they can be outsourced.

Running your credit repair business can be an exceedingly fulfilling endeavor, both in terms of profit and emotional satisfaction. Every place you go you will find people with bad credit. One out of every three or four Americans have credit problems. Regardless of economic conditions, good or bad, there will always be a need for credit repair professionals. How far you want your business to grow is completely in your hands. If you goal is to earn some additional income working part time, you can do that, operating your business evenings and weekends. But if a full time business of your own is your goal, you'll have to be a "problem solver" for your clients."

Don't forget - your clients are able to learn how to fix their own credit. They do not necessarily need you for this particular task. However, they come to you for help with the expectation that you can solve all of their money problems. What they are really looking for is solutions! The better the job you can do of fulfilling this function, the better it will be for your credit repair business. Your credit repair business will become a very lucrative endeavor - provided you're able to solve your clients financial difficulties that are most troubling them!

Many people are so desperate they will look for any way out that becomes available to them. If they are so desperate as to lose patience with legal methods, they accept the "help" given by fraudulent credit repair businesses, who use illegal means to repair credit.

By using only legal methods to fix credit, you accomplish two very important objectives! First, you help people out of their financial difficulties. In addition, you are discouraging fraudulent credit repair businesses from operating. This is doubly satisfying! It will not only improve your status, it will earn you the "Big Bucks" at the end of the day!

Wednesday, November 18, 2009

Why Use Credit Repair Software?

Have you ever thought about using credit repair software to improve your credit? Obviously, doing a task manually is a much slower and more painstaking job than automating that task using software. But is automation always the best approach? Let's take a closer look and focus on repairing credit.

If you're having credit problems you can take one of two routes -
(1) fix your own credit, or
(2) get help from a credit repair company.

1. Take steps to repair your credit yourself - if you choose this route, you will need to educate yourself on the process of credit repair. While there is a lot of advice on the Internet regarding how to repair your own credit, the task can be quite difficult. Of those who try it, many become fed up with the process and come to the conclusion that the dollar amount that the average credit professional charges for their services is worth the cost.

However for those who would rather do it themselves there is new help at hand - credit repair software. This specialized software will automate a great many steps in the process, such as credit score simulation (as a learning tool), generating letters to dispute negative inaccuracies, tracking automation, negotiating with creditors and the like.

2. Seek the services of a credit repair company - if you have decided you do not wish to spend the time and effort to do it yourself, you can hire a credit repair agency. These, for a reasonable fee, will take over the work of improving your credit score little by little. These kinds of companies have and use credit repair software in order to enhance their accuracy, as well as efficient use of time.

Is there a difference in the usage of the credit repair software in the above two instances? When a person uses this type of software, he or she will bank on the automation process without a full understanding of what that automation does. Hence the usefulness of the credit repair software is diminished.
But when a professional credit repair company uses the credit repair software the have the knowledge to understand why it's designed the way it is and how to customize it for each individual situation. This is the reason why credit repair software in the hands of an experienced company seems to work much better than with the layman. The experienced businesses use it to improve their efficiency - as a useful tool; while the layman uses it to compensate for his lack of knowledge.

So it's easy to see that the question is not "is using credit repair software a good choice"; the better question is how to use this software to maximum advantage. Whether the software is used by an experienced company or by the layman, you cannot achieve best results with the software unless you have educated yourself regarding the credit repair process. When used as a tool, this software is of enormous benefit; otherwise its benefits are questionable. The credit repair industry is one business where customization is very central - and so, in the absence of adequate knowledge in applying the software, the results could prove quite disappointing.

Sunday, November 15, 2009

Credit Repair Services - 5 Tips To Get The Best

If you are seeking credit repair services, what is the first issue you look for? Most likely the answer will be, "the fastest way to improve my credit score." But this answer is the wrong motivation factor - one which will actually lead you to choose the wrong credit repair agency and a lot of times, one that avails of illegal means to raise your credit score.

Are you wondering why this is? Let's examine the reasoning.

When you make "fast" credit repair your priority, you become vulnerable to corrupt credit repair services that use this "fast credit repair" idea to lure unsuspecting victims. Allow me to introduce you to five foolproof tips that will help you choose the most competent credit repair services, and not get involved with corrupt credit companies.

Tip No 1 - reputable credit repair professionals never advocate quick-fix methods to help your credit report or score. The fact is, all legal and reputable companies will be very forthcoming about what credit repair services can be expected.

They will present you a contract outlining their credit repair services. Be sure you do have a contract; and if they do not present you with a contract, it's a dead giveaway that the company you are considering and the credit repair services they offer are fraudulent.

Tip No 2 - All reputable credit repair companies will make you aware of your rights and guide you regarding the credit repair services you can do for yourself. Things such as getting a free annual credit reports from the three bureaus, detecting errors in your report, disputing those errors, managing your finances and the like, are the things you can take care of on your own at some point in time.

The company will teach you what you can, with little effort, take care of yourself, and what is better left to their expertise. The quality of the credit repair services offered by a company can be well judged from such preliminary interactions.

Tip No 3 - No legitimate company will ever suggest that you bend or break the law.

There will be agencies that advertise "second" or "brand new" credit reports, complete and guaranteed removal of bad entries, immediate improvement in your credit score and so on.

Please! Before you take such claims seriously, visit the Government site of the Federal Trade Commission (FTC) and checked out what it says about repairing your credit score. This will make you aware of the fact that the credit repair services offered by companies such as these are fraudulent are even worse, illegal.

Tip No 4 - Every trustworthy credit repair business offers, among their services, free and highly qualitative counseling. As explained earlier, an ethical credit repair company will always be ready to handhold you along the path to financial self-sufficiency. They will provide you high-quality credit repair services and at the same time show you what you can handle on your own. If you find the company is not willing to teach you in matters regarding credit repair, contacting a credit bureau, and/or leads you to believe you can do nothing by your own efforts, then you can be sure that you are being taken for a ride.

Tip no 5 - I am leaving the best tip for last, because this is what will remain in your mind long after you finish reading. Check out whatever membership organizations to which the company belongs. For instance, many leading companies of this industry align themselves to the codes of conduct laid out by the ECRA (Ethical Credit Repair Alliance), which ensures that you - the customer - get the best possible credit repair services. Check out and ensure that your chosen agency is part of an ethical and nationally recognized regulatory body.

Tuesday, November 10, 2009

Credit Repair Companies - Don't Get Scammed

The first thing you should look out for when searching for ethical credit repair services is the affiliations of the company you are looking at. Every reputable company will be eager to provide you with their references on request. Here are a few tips that you should keep in mind as protection against deceitful credit repair companies.

1. Make sure the company belongs to the Ethical Credit Repair Alliance (ECRA) or a similar organization. You It's often suggested to select companies who are members of the BBB (Better Business Bureau) when considering whether to hire a service. When looking for credit repair companies, those agencies that are members of the ECRA are some of the best.

This body has its own stringent codes of conduct and any member organization will represent your best interest. All credit repair companies who are members of this professional alliance will have to maintain high standards in their business practices. This means protection for you, the consumer, from being "taken" by a predatory scammer.

2. Know what credit repair is before seeking help. Most people who are cheated out of their hard earned money when hiring help with their credit, do not understand credit repair. You should be knowledgeable about what what these companies are able to do and what they are not able to do.

Only when you know clearly this difference, will you be able to distinguish those companies who offer you false promises. For instance, no one can remove negative remarks entered on your credit report if these can be verified. You will find many such credit repair companies claiming they can completely clean your credit report in as little as a month. Now think for a moment; can this be done without breaking the law? If the answer is negative are you sure you want to engage in methods that are illegal?

3. Avoid unsolicited offers you receive through email. At a time when you find yourself in financial desperation, don't think for a moment that it's good fortune that sent you such an e-mail. These kinds of e-mails come from fraudulent businesses who obtain your email address through various unethical methods, and send out e-mails by the millions hoping to "snare" someone in financial distress whom they can scam for all they're worth!

Never be fooled by such shenanigans. Most of the time these are unscrupulous thieves hoping to prey on the unwary. Honest credit repair companies will contact you by e-mail or US mail only if you have ask for them.

4. It is illegal to create a "new identity." This is one huge fallacy that many people choose to believe, primarily because it looks like the "Silver bullet" that will resolve all their difficulties. This belief is so prevalent because so little is understood about credit repair by the average person. But the problem is that this technique - called "File segregation" - is illegal! Your credit score is a summation of your credit history that goes back to the time you first became an adult. So acquiring a "new" history is an impossibility? So if you were to attempt it, doesn't it make sense that it can't possibly be legal? Thus there's no question that the credit repair companies that propose this as a solution to your difficulties are scammer.

5. Demanding complete payment upfront should raise a "red flag." Federal Law stipulates that the agency must provide you with a written contract and they must not collect fees until they have rendered their services. You may cancel the contract within three days.

A company may charge a fee up front for a consultation or analysis of your credit report, and then charge a fee every month as follow-up with the credit bureaus is continued on an ongoing basis. However, if you are required to pay the complete charge before any services have been rendered, they are likely doing so because they realize you're not going to pay them once you become aware that they can't perform as promised. Organizations such as these are fraudulent and you should avoid them like the plague!

6. Credit repair won't happen overnight. As we discussed, no reputable company can improve your credit score overnight or remove negative information that the credit bureaus verify.

At best the not-so-serious problems can be countered over 2-3 months time, by removal of mistakes, and by improving the way you handle your finances and overall payment of bills and loans. More serious entries such as repossessions and foreclosures will stay on your report 7 years, even given exemplary management of your finances. Bankruptcies can remain on your credit report for 10 years. If you are given guarantees of a fast removal, you can be sure of fraud.

7. Not given a contract? Look elsewhere! Many people will be saved from the pain of being defrauded if they insisted on a written contract; and according to the law, this is your right.

The ripoff artist are opposed to offering a contract, and if they do present one, there will be an absence of information on aspects of the services, the amount of the payments, and so on. You will learn a lot about these businesses by looking at the contract. If they do not offer a contract for any reason whatsoever, do not hire them.

8. If anything is guaranteed, beware! Not even the most experienced organization will guarantee anything as far as the results of their service they provide. They can realistically promise to use all legal means to improve your credit score. But to guarantee results is a different matter entirely.

However, the unfortunate reality is, people prefer to hire a organization when they are told what they want to hear, rather than hire a company who is telling the truth. Do not fall into this trap! Even though you would prefer to hear about guaranteed results, credit repair companies that guarantee results are ripoffs.

9. See if counseling services are offered. A good many credit repair companies will offer free counseling services.

If the organization under consideration is not offering them, look a bit beyond. It might be an organization unworthy of your trust. Reputable companies will educate their clients about repairing credit. The company performs those services that are for those matters that require professional expertise toward improving the credit scores.

10. Bad advice? Beware! There are companies who will advise you to dispute every derogatory account on your credit report by declaring "this is not mine.." Although this may result in short-term improvement in your credit score, the creditors whose entries had been disputed may later counter it, and it will later be verified by the credit bureaus.

Because the credit bureaus do a very bad job of keeping accurate records, the probability is very high that the details of any one trade lines contain errors. But credit repair companies that tell you to state "this account is not mine" even if it is, must not be trusted.

As you can see, there is no shortage of red flags to warn you against scams. Before anything else, before you hire credit repair companies it is to become knowledgeable regarding credit repair matters. In addition you need to educate yourself regarding laws pertaining to the credit repair business before looking for a credit repair company. A good beginning is to visit the web sites of the FTC Bureau of Consumer Protection and the Ethical Credit Repair Alliance.

Thursday, October 22, 2009

5 Benefits of Credit Repair Companies

There are five things at minimum that should be expected from a credit repair company. If you're among the roughly 80 million US citizens in need of credit help, you might have some difficulty making up your mind whether to repair your own credit or hire help.

Now it's entirely possible that you can repair your own credit and do a very good job of it, with a bit of study. But there are some definite advantages to hiring a professional company. Consider the following reasons.

1. Expertise - credit repair companies have had years of experience and have aquired the know-how to deal with the credit bureaus. They will have handled various cases and learned many tricks along the way. Since they don't have to learn "from scratch" (as you would have to) they are likely to achieve much faster results. You may have heard it said, "Nothing is impossible, if you know how." Credit repair companies already have the know-how. You can benefit from their knowledge rather than having to learn it on your own, from the beginning.

2. Saving time - a great deal of time is involved to clear your credit report of mistakes. It's essential that dispute letters are drafted correctly and continually followed up to bring about results. Trustworthy credit repair professionals know the ropes, and will continually follow-up until every erroneous item is removed. Hiring a credit repair professional is a logical choice if you have very little time available to repair your own credit.

3. Gets you going in the right direction - self learning is great, and the Internet has made it easier than ever before. But teachers are still needed. Having a good teacher can mean the difference in success or failure. Most reputable credit repair companies will educate you in financial matters in addition to helping with your credit. In fact, most reputable credit agencies offer free qualitative counseling services.

4. Continued monitoring - a good credit repair service will continuously monitor your credit report. Credit improvement is only the beginning. When the mistakes have all been removed from your credit report, it must be watched closely, especially for the possibility of identity theft. Close monitoring is necessary to identify additional errors, so they can be disputed and deleted. It will provide you a good look at how well how or how poorly the credit bureaus are keeping records of your credit habits.

5. Saves you money - trial and error is sometimes worthwhile, but other times can be problematic. Improving your credit score using the trial and error method could cost you more than you realize in regard to high interest rates, time, and frustration. A trustworthy and experienced credit repair service can save you many times the cost of their fees, since improving your credit will result in lower interest rate loans. They will be able to achieve faster, and often better results

As we've shown, hiring a reputable credit repair professional has many advantages. Naturally, you should take all factors into account before making a decision. At the end of the day it boils down to your own personal preference.