Can a credit repair company really clear your credit?  Yes, credit repair companies are and have been very successful at helping people clean up their credit reports. It is truly astounding how many people out there believe that credit repair cannot work and credit repair companies are nothing but scams.

     While some credit repair companies are outright frauds, others are not frauds and they use the dispute process to obtain impressive results. For those consumers who have many negative credit issues and do not wish to spend the time or energy disputing their credit reports, credit repair companies are a great and often affordable solution.

     Credit repair companies are regulated by the Federal Credit Repair Organizations Act which prohibits certain actions such as charging for services before they have been performed or offering to create a separate or “new” credit files. Credit repair companies are prohibited from charging or accepting advance payment for their services. They are also required to provide consumers with complete information about the services they will provide.

     Some credit repair companies are operated by “financial professionals” or “credit experts” who may or may not be able to help you resolve any legal issue that comes up while you are going through this process. While some credit repair companies are all about taking individuals for every dime they can get, some of them are actually legitimate.

     Reputable credit repair companies are a viable resource if you are in a position where you need credit repair and don’t feel you have the time or inclination to repair your own credit. However, they are not going to be helpful to everyone.

     Because credit repair companies are not permitted to order credit reports (see the permissible purposes section of the fair credit reporting act), you will need to help them with this process. So for those thinking that this process will be completely “hands off”, you must be aware that you are going to have to be involved with your credit repair.

     The credit repair companies are under immense pressure from government agencies, credit counselors, finance companies and banking institutions: and of course the main credit reference companies who rely on poor credit ratings to earn profits – at times it is difficult to see who the “good guys” are!! There are some reports that many credit repair companies are actually covers for lenders and finance brokers that really just want to sell you a loan.

     Some food for thought…remember that most of these companies are in business to make money. Do you think it might be in their best interest to keep you paying them monthly for as long as possible while they “fix” your credit? Or do you think you might bite the bullet and do your own credit repair cheaper, better, and faster yourself?

   Hello All, 

I know that most of you are winding down and getting ready to celebrate the holidays with family. I want to take a few quick moments and thank each of you for your support and kind words. This journey of credit repair and increasing credit scores will be off to a GREAT start in early 2009. I have some new techniques and insider tips we have been using here with HUGE success.

Talk Soon!

Your Credit Score Insider,

Mark Garcia

   There is finally some relief being shown to the American Credit Card User. For far too long we have been taken advantage of and abused by these greedy companies. Now, don’t get me wrong, the credit card companies didn’t twist our arm to take their product. No, we signed up willingly, it’s just that they had some pretty sneaky ways of charging excess fees and/or jacking up our interest rates if we did something wrong on a completely separate credit card.

   There is FINALLY going to be some new standards of accountability required of the credit card issuing companies.

   Credit card law has been a Wild West these last few years. The new rules are seen as a huge victory for consumers, but are estimated to cost the credit card industry $12 billion in annual revenue.  I don’t think that anyone one of us is going to be weeping for the credit card issuing banks. Most of them are the cause of all the bad credit scores or ruined credit that most Americans find themselves with. Wasn’t it just a few short years ago that the Credit Card  Company Lobbyists were pushing for lawmakers to make it virtually impossible to eliminate credit card debt through Bankruptcy??? Hmm, can anyone else smell the Karma???!!

   The new credit card rules, however, are a more-direct shift than the Fed lowering the benchmark interest rate. If your credit card statement has caused consternation, calls to customer service or hair-pulling, this legislation is for you.

   To find out if the cards in your wallet are up to Federal snuff, Billshrink just launched a tool that allows you to enter in the name of your credit card and see how it compares to others out there. Each card gets a score from 1-100 based on how it compares to others in terms of annual fees, purchase and transfer APRs, and other features. You can also set up email alerts to notify you nearly instantaneously if the fine print on your card changes.

   Perhaps most telling is Billshrink’s analysis of who already is meeting Fed criteria (see list here). According to them, no cards meet all of the eight main requirements. However, AmEx is winning the universal default race, with 15 cards complying; Capital One is winning with timely bills (14 cards); and Citi has the most cards offering advance notice of interest rate changes (15 cards).

  Considering the thousands of cards out there, this list is pretty dismal. And although the rules don’t need congressional approval, they won’t take effect until mid-2010–a bummer for presently panicked consumers.

Stay Tuned!

Your Credit Score Expert,

Mark