Credit repair is a tedious and difficult task to accomplish, especially when one lacks the technical know-how when sorting through credit scores, and then balancing the accounts.
However, it is important since it will help one to stay afloat financially, and to prevent oneself from drowning in debt.
To solve this problem, one can seek the help of a credit repair service in order to assist and provide expert information in clearing the credit score errors and restoring credit.
However, in choosing such a service, one must exercise caution.
There are many cases of fraud and scams in the business industry, and some companies lure and fool their clients into investing or contracting their services, with the intent of running away with the client's hard-earned money.
When large sums of money are involved, it can be dangerous to trust any other company as easily.
There are many companies which offer quick fixes, like posting ads that read, "Credit repair in just 14 days! 50% discount! Guaranteed!" Such dubious advertisements give clients the false illusion that credit repairs are as easy as counting 1-2-3.
But because of the recent global financial meltdown, with most of American's credit incurring errors and deficiencies, and sometimes with decreasing credit scores, some do not want to hassle themselves in scouring through these confusing numbers and digits.
Some would like the problem solved in no time, so they could increase their credit scores quickly and become eligible when applying loans.
This is often the reason why they seek the service of agencies that claim to be able to work with your credit.
Recently, the Federal Trade Commission has settled in court at least two complaints involving a company and two individuals offering these services.
According to the FTC, they have violated a provision in the federal law which stipulates that credit fees must be collected only after the service has been duly accomplished.
Also, removing negative credit scores, even when it is accurate and updated, is another violation.
Even worse, the credit repair company and some individuals involved in the business failed to fulfill their advertisements promises, leaving the clients both drowning in credit scores, and highly unsatisfied with their unfinished services.
In the end, the case reached a settlement, amounting between two to ten million dollars.
The point here is that people should always be careful when using services of companies offering quick fixes.
There is always the danger of becoming the victim of a business scam or fraud.
It is important to check the reputation and track record of the credit repair agency, and to keep in touch with the reporting agencies regarding their transactions with these credit repair organizations.
Looking for an online credit repair guide will also provide online credit repair information that will help in fixing credit scores.