Repairing your credit by means of a credit repair service seems to have become very fashionable. It has had extensive publicity, both positive and negative, and people have decided to give it a shot. It has worked for many, but not for all. I usually receive many daily mails requesting information on this repair services, and customers more often than not request my own personal opinion and experience with them. As I had already written an article on the advantages these special services have, I decided to write another one on the downsides they carry. Nothing is perfect, now you will be able to see the two sides of the same coin.

Reason #1: False Promises

I have heard it over and over. People fall for this scam every day. How does it work? Well, you contact an agency which seems very reputable and professional, they offer great services and, as you need to have your credit fixed no matter what, you might subconsciously believe almost anything you hear. The person in charge of the repair service lets you know your credit history will be as good as new in only a matter of weeks and you become really excited. He claims he is able to wipe out all negative information from your credit report. And you buy it, of course. But that is just the biggest lie ever. Negative inputs, if accurate, cannot be erased. Never. Only inaccurate negative information will be disputable. Please keep this in mind, do not let enthusiasm cloud your mind.

Also, creating a new credit identity is something which cannot be performed. Not only because it is not possible but also because it is illegal. Beware of companies claiming they can do this because you could get in serious trouble by trying it.

Reason #2: Up-Front Charges

You must be very familiar with this rule, but I will mention it anyway. It is very common for people in need of a fast solution to their bad credit problem to do anything they can for help. Even if it means paying up-front fees to dubiously honest people. Remember that it is against the law for a financial company to charge any sort of fee before providing their services. You should never be charged for the right to apply for anything, that is just downright illegal.

Reason #3: Does Not Inform You Of Your Rights

The company must (as stated in the law) inform you of your legal rights before you sign any contracts. What is more, you can ask for a free copy of the FTCs Consumer Credit File Rights Under State And Federal Law. If you request this file, they can by no means refuse to provide you with it.

I do not really have a formed opinion on this financial product as of yet, they both have benefits and drawbacks as everything in this world, and each consumer should weigh those pros and cons in order to find out whether this product is actually the way to go. But I believe in hard work, and I know for sure that there is way for one to fix his own credit without having to resort to third parties. If it can be done for free and by yourself, why should you pay? I will leave that up to you to decide.