The Auto Pool - USA - Credit Cleanup

All credit information is controlled by the FAIR CREDIT REPORTING ACT. Under this law, certain public corporations (Experian, Transunion, and Equifax) are permitted to use PRIVATE information about you and your credit, and SELL IT FOR A PROFIT to the public. Obviously, this gives them a great deal of power which could be misused.

Therefore, the law sets up a complicated set of rules which must be followed in the event they decide to put an item on your credit report. If a credit bureau cannot prove they followed the rules when they are questioned about their findings, they must remove the item from your credit report. The problem with this is that most people do not know the rules by which these agencies must operate, much less how to contact them. It is at this point, you should seek professional help in cleaning up your credit. You have choices in this regard.

All credit cleanup companies (like Credit Counseling Consulting Services) charge fees, even those that state they are non-profit. (How else would they earn their salaries?) They merely tag their fees on top of what you already owe and get your debtor to agree to pay out the amounts owed. In other words, you are still paying the debt; however, it is at a reduced amount, and now you are paying the non-profit credit counseling service's fee on top of it. The main advantage to this kind of company is that the law gives them authority to stop creditors from hounding you and gives you time to develop a repayment plan which is funded through them. They receive a percentage of the amount you pay in each month. For many people, this is the way to work themselves out of debt. The down side is when you become a client of this type of company, the law requires it to be noted on your Credit Report. Most companies will not advance any credit when you are a CCCS client. In their eyes, the program is almost the same as taking Chapter 13 bankruptcy. The CCCS plan takes many months before your score starts to look better.

An alternative to cleaning up your credit is to choose a company that DOES charge a fee to clean up your credit and states that up front. Most charge a flat fee of between $400 to $500 and enjoy success by negotiating with the credit agencies over the validity of the credit claims. In this regard, if a claim is disputed and it is not substantiated, the credit reporting agencies must remove the item from your credit report. The fact that you are a client of this type of company never appears on your credit report. Under their plan, they simply force the credit reporting companies to remove derogatory information from your credit report, thereby improving your credit score much more quickly.

Do not make the mistake of thinking that you are not legally responsible for valid debts. That is not the case. Removing a legitimate debt from your credit does not relieve you of your legal responsibility to pay it.

Check with all kinds of agencies. Obtain a copy of their contract and read it carefully to see exactly what you are getting for your money and what results you can expect. Ask for references, always.

Since it can take a minimum of 30 to 60 days to see any results from credit cleanup procedures, we suggest you begin early (before you plan on making the big purchase).