Frequently Asked Questions

 

Q: Is Credit Repair Legal?

 

A: Not only is it legal, it is regulated by the Federal Trade Commission. Title IV of the Consumer Credit Protection Act is the Credit Repair Organziations Act (CROA). It provides the rules and regulations for the credit repair industry. There are also guiding principles related to credit reports in the Fair Credit Reporting Act (FCRA), Fair and Accurate Credit Transactions Act (FACTA). If the company you choose is thorough and they provide debt related services (which we believe is critical if you are truly trying to improve your credit), they should also be familiar with the Fair Debt Collection Practices Act (FDCPA), Fair Credit Billing Act (FCBA) an amendment of the Truth and Lending Act. See the "Laws & Regulations" section of the web site.

 

Q: How do I know which company to choose?

 

A: OnlineCreditGuide.net has taken the guess work out that decision. You would otherwise need to spend hours researching, calling and reviewing records to determine which firms are reputable and experienced. Without doing your homework it would be very difficult to avoid companies that will be gone as soon as they realize customer expect results.

 

Q: How much should it cost me to work with a reputable firm?

 

A: Most companies charge a setup of fee just under $100. There is typically a monthly service charge from $39-$89. There are few companies that charge less, however in most cases you get what you pay for. Avoid companes charging more than the average prices listed above. Most credit repair scams attempt to charge hundreds, sometimes thousands before they even begin working. Don't be fooled. The firms we have chosen all meet our criteria and can be trusted to help you.

 

Q: How long does credit repair take?

 

We believe most the results you should expect to see will come in the first six months. After that point, companies are re-disputing the same items over and over again. While there may be success after the six month mark, it is less likely in our opinion and certainly not worth the monthly fees you will be charged. We think it is important that consumers do not sit back and wait for results. In order to improve your credit you must take into consideration all five factors affecting your scores: 1) Payment History, 2) Amounts Owed, 3) Length of Credit History, 4) New Credit, 5) Types of Credit Used. If you wait an entire year, counting on deletions to fix your credit situation, you will be sadly dissapointed at the end of that year.

 

Q: Can I Repair My Own Credit?

 

A: In one word, "yes." You can also change your oil, change a tire, detail your vehicle, prepare your own taxes and many more things that you choose to hire other people to do. However, unless you know the laws listed above and have the time and resources to understand all there is to know about credit (which is extensive), you could do more damage than good. There are so many common misconceptions about credit and credit scores that it is worth consulting a reputable professionals.

 

Common Misconception - If you have a two year old collection for $5,000 and a thirty (30) day $25 late payment, which one is more damaging? That's right, the $25 late payment because 35% of your score is based on payment history. Imagine settling a $5,000 debt, when you just needed to get and stay current to improve your credit faster and cheaper.