Legal Credit Repair vs Debt Counseling
So, what exactly is legal credit repair anyway? You may have heard of legal credit repair or even debt counseling but did you know the difference is night and day?
The best companies that practice legal credit repair are usually law firms that specialize in credit repair. They can remove negative items on a credit report and are experts with the credit laws.
If you change your social security number to get clean up your credit that is an example of illegal credit repair. If any company ever suggests this type of credit repair to you, they are running an illegal operation. You should report them to the authorities immediately.
If disputed every item on your credit report, regardless of nature, this is another example of illegal credit repair. You are allowed to dispute credit reports, but only items that are unverifiable, inaccurate or misleading should be disputed according to The Fair Credit Reporting Act. You should not dispute items that are clearly yours, and accurately reflect your credit history because that is illegal.
When it comes to legal credit repair, there are a few different methods, but here are a few of the most effective ones.
Credit negotiation is a method of legal credit repair where you negotiate directly with creditors by asking kindly them to remove negative items from your credit reports. Law firms that specialize in credit repair carry much more clout than a consumer.
Even though there are no laws that require negative items to stay on your credit reports for any amount of time, The Fair Credit Reporting Act gives consumers specific rights. These attorneys that dispute credit reports know exactly what methods work and can save a lot of headaches as well as time.
Once you dispute the negative information on your credit reports, the law states the burden of proof is now up to the credit bureaus leaves. If you feel information is inaccurate or unverifiable and the credit bureaus can not verify that information, then those items must be deleted from your credit report.
So what about debt counseling and is that legal credit repair? Consumer Credit Counseling Service is a nonprofit debt counseling service that assists consumers who are in severe debt. But, did you know that Consumer Credit Counseling Service is funded and controlled by the credit grantors and the credit bureaus?
That doesn't mean that Consumer Credit Counseling Service does not provide a beneficial service to the consumer. They help thousands of people who desperately need help. But the allegiance between Consumer Credit Counseling Service and the credit bureaus has many people believing that this program will restore their credit.
But the truth is, even though they can help with your debt and payments the program does not restore your credit. In fact, once you sign up with the Consumer Credit Counseling Service, you must finish their program or there are consequences.
If you decide to drop out of the program before you have finished their debt counseling, they can list that as a negative listing on your credit report. Just the fact that you even signed up for debt counseling is a red light for any future credit lender.
Make sure you know the difference between debt counseling and legal credit repair. Paying off your debts is one of the best things you can do financially, but understand it will not restore your credit. If you start paying your debts on time, eventually your credit score will raise.
It's important that you know the difference between debt counseling and legal credit repair, so there will be no surprises and you know exactly what to expect.
Article Source: EZ Articles Directory
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