What is credit repair anyway?

Credit repair, debt dispute, or Debt validation is a powerful tool you can use fight back against abusive debt collectors. Under the Fair Debt Collection Practices Act sec. g 15 U.S.C. §1692g (FDCPA) and Fair Credit Credit Reporting Act you have the right to proof that the debt is valid

Read about your rights under the Fair Debt Collections Practices Act here

In other words you have the right to ask the creditor to prove that the debt is actually yours. If they can’t/won’t the debt has to go away! Yes that’s it!

Does credit repair work?

Actually it’s a little bit more complicated than that. You see most people will just try to call and do a dispute themselves. That may not be a good idea. If you do it over the phone by law they are not required to stop collection procedures. You must go through several procedures to ensure the debt isn’t validated and it goes a way.

According to the Federal Trade Commission (FTC) you have about a 50/50 chance of the debt not being validated and you getting off the hook.  So does credit repair work? The answer is maybe!

How to tilt the odds in your favor

Unless you have a great deal of skill and legal knowledge it is advised that you not try this yourself.  You can imagine how much debt collectors love letting people off the hook. Therefore they won’t make it easy if you try to do it yourself. You’ll be a lot more successful if you get a reputable credit repair company to help you. A reputable company will know all the tricks of the trade and can keep your dispute on course whenever the debt collector tries to swerve the wheel.

 A reputable credit repair company will  first pull your credit reports from each of the three major credit reporting agencies to pinpoint your credit issues. This is because the three credit bureaus get their info from different people and thus have slightly different information on them.

Once the errors have been identified the company will dispute the line items. It’s particularly helpful if you have documentation to prove that the debt isn’t actually yours but if not they can dispute it anyway.

A good credit repair company will scrub questionable credit report items against other laws — like the Fair Credit Billing Act, which regulates original creditors; the Fair Debt Collection Practices Act, which oversees collection agencies; and others that address medical illness, military service, student status and other life events

Some useful tips

Make sure when you hire a credit repair company that they make their fees  clear. Usually you can expect to pay between $50-$100 per month depending upon the company.

Ask them how long the process should take and if they offer any sort of refund if the debt isn’t removed

Check if they are registered with the better business bureau and ask how long they’ve been in business

Reputable Credit Repair Agencies

American Debt Enders
CuraAdebt
Credit Repair
CreditFirm

Need extra cash?

Check out our article on how to earn extra cash. You can do things from micro projects on Amazon to worm farming. Not kidding here!

3 Comments
  1. Armani jackson 1 year ago

    I might need to try this. My credit is f’ed up!

    • Devon Johnson 1 year ago

      Me too!

  2. Drey McDrey 1 year ago

    My auntie did something similar to this because she couldn’t get a house cuz she had some bill or something on her credit. It worked. We goin over there for thanksgiving actually!

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