Duct Tape Marketing

 The issue you should first look out for when you're in need of trustworthy credit repair services is the affiliations of the agency you chose for this purpose. Every reputable company will willingly share with you their references on request. These are some important issues to keep in mind in order to steer clear of dishonest credit repair companies.

1. The company should belong to the Ethical Credit Repair Alliance (ECRA) or another reputable regulatory body.

You It's often suggested to select companies who are members of the BBB (Better Business Bureau) when considering whether to hire a service. However, in the case of credit repair companies, those businesses that are members of the ECRA are among the best choices available.

This body accepts only those members who agree to a stringent code of ethics and any business that gets their approval will give you their best services. All credit repair companies who are members of this organization must maintain high standards of ethics 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. The majority of those who get "taken" by dishonest companies while they are seeking ways out of a financial jam, have no prior knowledge of what credit repair is all about. Make sure you understand what what these companies are able to do and what they cannot.

Only when you know clearly this difference, will you be able to distinguish which agencies can be trusted. For example, no one can remove derogatory accounts on your credit report if those accounts are verified by the credit bureaus.

There are those credit repair companies telling you that within as little as a month you can have a completely clean credit report. Now think for a moment; is this even possible to do legally? And if not you had best pass on their services.

3. Do not accept e-mail offers. 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 harvest e-mail addresses through unethical means, and are sending out millions of spam emails in hopes of tricking some needy soul whom they can scam for all they're worth!

Steer clear of these. Most of the time these are scammers looking for their next victim. Honest credit repair professionals will make their offers through newsletters or emails only if you have requested information.

4. You cannot legally create a second credit report or a "new identity." This is one huge fallacy that many people choose to believe, mainly because it would seem to solve all their problems. 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 ask yourself "how can getting a "new" credit history be possible"? And since it's not possible, any attempt to do so would have to be illegal. So it's glaringly obvious that the credit repair companies that offer this "solution" as a way out of your troubles are not legitimate.

5. If a company asks for complete payment before any services have been rendered, beware! According to Federal Law the company provide you a written contract upfront and that they cannot charge you full payment until they have completed their services. You also have a right, by law, to cancel the contract within three days time.

A company may charge a fee up front for a consultation or analysis of your credit report, and thereafter charge monthly fees as they continue to work on improving your credit. However, if you are required to pay the complete charge before any services have been rendered, there's a good chance it\'s because they know they won't get paid once you know that their claims have been exaggerated. Organizations such as these are fraudulent and you must not deal with them!

6. Credit repair takes time. As we discussed, no trustworthy credit repair business can improve your credit score overnight or change your credit history entered on the credit report if it can be verified.

At best the not-so-serious problems can be countered over 2-3 months time, by correcting errors in your report, and by improvement in your financial habits. More serious negative trade lines like foreclosures and repossessions will remain on your report for seven years, even with excellent financial management. Bankruptcies cannot be removed for ten years. "Guarantees" that these can be removed overnight means fraud.

7. No contract, no deal! To avoid being scammed, make certain you are given a written contract; by law you have the right to insist on a written contract. Fraudulent companies will shy away from offering you such a contract, and if a contreact is given, important information will be missing in regard to the services, what the fees are, and the like. You will be able to understand the nature of these companies by looking at the contract. And if, for any reason, no contract is presented, stop your dealings with them instantly.

8. No reputable agency will make guarantees! Not even the most experienced organization can guarantee the results of their service they provide. After looking at your credit report, they can promise to use all legal means to affect improvement in your score. However, in the credit repair business there can never be any hard core guarantees in regard to results.

However, the unfortunate reality is, people would rather hire a company that tells them what the want to hear, rather than hire a credit repair business who gives them an honest and truthful assessment of the situation. Do not fall into this trap! Although you might rather hear promises of positive results, credit repair companies that offer guarantees regarding results are to be avoided.

9. See if counseling services are offered. A lot of credit repair companies offer counseling services at no charge. If the organization under consideration is not offering them, try looking a little deeper. It might be an organization unworthy of your trust. Trustworthy agencies encourage their clients to become knowledgeable in regard to credit repair. The company performs those services that are for those matters that require longer and more complicated interventions to effect the best results.

10. Wrong advice means danger! Some agencies have you dispute all the negative entries on your credit report declaring "this is not mine.." While this may result in a higher credit score in the short term, the creditors whose trade lines were disputed may later counter it, and it will later be verified by the credit bureaus.

Because of the numerous inaccuracies in record-keeping by the credit bureaus, the likelihood is great that any trade lines on your credit report has mistakes regarding the details. But credit repair companies that tell you to state "this account is not mine" if it in fact is yours, cannot be trusted.

As you can see, there are plenty of warning signs to warn against possible fraud. The first and most important thing you should do before you seek the services of credit repair companies it is to become knowledgeable regarding credit repair matters. You also need to know the minimum applicable laws prior to hiring assistance with your credit. A good way to begin is to visit the web sites of the FTC Bureau of Consumer Protection and the Ethical Credit Repair Alliance.