Credit Repair Company Type 1:
The first type of Credit Repair company is typically a one-man show run out of a residence. In general, this type of company advertises extremely low rates for their service and will usually have unbelievable service guarantees to top it off. It is not uncommon for this type of credit restoration organization to be a complete scam and take the consumers' money without providing any service at all. Moreover, if you are dealing with a company that falls into this category you are lucky if the only thing you lose is your money and not your identity in the process. In this day and age, identity theft is going on on outbreak proportions. If you can't know the company to be reputable, you should consider before giving over your personal identification information.
While all credit restoration organizations that fall into this category are not scams, it is very common for the individual running this type of company to be completely unaware of the compliance all credit restoration organizations must adhere to. This business will typically use 3 or 4 standard dispute letters that are extremely general and not intended to use in every situation. Although using standard dispute letters may provide some level of good success, their use also has the potential to further damage your credit. Moreover, the use of standard dispute letters usually only provides temporary results as the negative information taken out of your personal credit file will most likely reappear on your credit file so when it is reported by the creditor.
Credit Repair Company Type 2:
The second type of Credit Repair company generally appears to be much more legitimate. They will have a physical office but similar to Credit Repair company type 1, they only use the same standard dispute letters mentioned above. While typically not planning to operate illegally, compliance issues are usually overlooked. The largest difference between Credit Repair company type 1 and 2 is that the second usually makes use of an inexpensive software program that allows it to produce volume and handle clients on a much wider scale. The letters used are extremely general and for that reason, will not get the best results possible. Although this type of credit restoration company may do a large number of business, they are not setup to handle consumers that have specific credit related problems. This type of credit restoration company uses more of a cereal bar cutter approach.
The first two types of Credit Repair companies mentioned replace with more than 90% of the Credit Repair industry. Credit Repair company type 3 and 4 are contrasting and replace with less than 10% of the industry. It is very important to note the differences.
Credit Repair Company Type 3:
Not only is the third type of Credit Repair company usually compliant with the laws governing credit restoration organizations, but it is also usually well versed in the U. S. Code used to dispute negative credit items on the consumers' credit file. Using more than just standard dispute letters, this type of company can be much more effective than the first two. Because this type of Credit Repair company has such a good understanding of the U. S. Code related to credit, it is typical for this type of company to offer custom Credit Repair work to its clients. The ability to provide custom work for its clients allows this type of company to top the quality of service offered by the first two types of Credit Repair companies.
Credit Repair Company Type 4:
The forth type of Credit Repair company is very much like the third search on that it is usually compliant with federal law, extremely well versed in the U. S. Code required to be effective in the Credit Repair industry and typically also offers to perform custom dispute work for its clients. The largest difference between credit restoration company type 3 and 4 is that Credit Repair company type 4 has legal representatives on staff or is came down with with a law firm. Credit Repair company type 4 will also usually be a little more expensive than the other three Credit Repair company types but will almost always be a little more effective. Not only can an attorney based credit restoration organization provide the best results possible, but a credit restoration organization that has legal representatives on staff or is came down with with a law firm can also enforce the consumers' liberties should legal action be asked to correct mistaken items on a consumer's personal credit file. Beyond that, by using an attorney based credit restoration company, the consumer can minimize the possibility that an item will be re-reported by a creditor as an attorney has the ability to take additional steps to block negative items from being re-reported on a consumer's personal credit file. There are very few credit restoration organizations that fall into this category.
As you can see, it is not only important to find a credit restoration organization that is staffed with intended theme experts and has the ability to provide great results but it is also very important to find one that is compliant with the guidelines set forth by the federal government. Further, you should now understand the benefit of using a credit restoration company that has legal representatives on staff or is came down with with a law firm. Your credit report has more of an influence in determining your financial future than most anything else. You should not put your credit report in the hands of just anyone. Choose a credit restoration company that is compliant, well versed in the related U. S. Code, staffed by intended theme experts and legal representatives or employs the services of a law firm.
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