Hi everyone, I have been hearing lately about credit repairing companies and the amount of work they get in their business. One of my cousins is running a credit repair business, I have talked to him about the business but, I need more information on this so that I can start my own credit repair business. Please do suggest your views on this!!!

Credit repair companies.....AAARRRRRRGGGGHHHHH

Here's the deal on credit repair companies.

THEY DON'T WORK AND NEARLY ALL OF THEM MAKE PROMISES TO DO THINGS THAT CAN NOT BE DONE!

Credit repair companies have really become one of the sham markets in the US over the last few years. Here are the facts.

Negative tradelines will stay on your credit report for 10 years from the date of last activity.

Positive accounts will stay there for 7 years after the date of last activity.

There are about 13 different types of credit reports. All of them have different scoring criteria for specific uses such as mortgage, auto, employment, rental, insurance, etc.

Your credit report, even though it contains all of your information, is not yours. A credit report is a product of a credit reporting agency as is the score attached to it. How the scores are derived is proprietary information. There are mathmatical models that exist to demonstrate how a change can increase or decrease your score but only the rarest of occasions will it be necessary to go through those hoops to increase your score.

Bottom line, if you want to increase your credit score then do the following. Pay your bills on time. Do not carry too many credit accounts or too few. Do not let an account get written off or charged off. Just because the bank writes off the amount you owe does not mean you no longer owe it. It means it has become a collection account and you still owe for it.

I have examined literally thousands of credit reports and there has only been 1 time when a negative tradleine was removed from the credit report and that was because the collection account had been sold off so many times that the company that actually owned the debt could not locate a record of it. THAT IS RARE!

Credit repair business is a good business these days as more and more of the employers are having less time and they need someone to handle their credit affairs and look after the credit reports. Credit repair is the process of improving or rehabilitating one's financial reputation among creditors. It can be quite a successful business if handled with good efforts.
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There is nothing that a credit repair business can do that you cannot do for yourself. Go to the websites of the credit reporting bureaus and follow the instructions on how to legitimately take wrong information off your credit report.
The only thing that these credit repair shops can do is take your money and get you into trouble. Yes, they can temporarily take things off your report but if they are legitimate, then they will be right back on and you will have to wait the appropriate time that the law allows for things to come off.

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This message has been edited. Last edited by: MortgageGuru,