There are credit repair businesses with years of experience, but there are also companies which open quickly. These sometimes close just as quickly, leaving the customer with less money and the same credit score. An effective credit repair program can be a "dream come true", but a credit repair scam can be a nightmare.
If you are considering a credit repair program, there are certain things which may indicate a scam. The Federal Trade Commission advises that consumers should beware of credit repair businesses which claim to be able to repair your credit in a very short period of time. A credit repair program takes time to implement and time to work. Thirty to forty-five days is reasonable for initial results.
It is also, of course, advisable to avoid credit repair businesses that recommend an illegal or questionable credit repair program. If you have problem credit, then you have enough problems. You do not want your credit repair program to create more. A legal and effective credit repair program includes contacting the various credit bureaus to have negative items removed from your credit report. An illegal credit repair program includes applying for an Employer Identification Number (EIN) to use instead of a social security number. Credit repair businesses which suggest the EIN alternative should be avoided. An EIN is a number assigned to a business by the IRS. If you are not a business owner, you have no "business" applying for one.
A comprehensive credit repair program should include an evaluation of your particular credit situation. If a company offers a free evaluation, take it, but do not disclose social security, credit card or bank account numbers. Only discuss your credit problems in general terms. FICO charges consumers a fee to view their credit scores, but many lenders use the FICO scores as the basis for determining credit worthiness. A complete and effective credit repair program will remove negative items from your credit report, which in turn will improve your FICO scores.
