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Credit Education > Credit Repair > Instant Credit Repair is usually Illegal Credit Repair

Instant Credit Repair is usually Illegal Credit Repair

By Janet Lacey
Published: Thursday, January 21st, 2010

The need for credit repair has made a lot of companies to claim that they are legitimate entities that can fix credit reports and FICO scores in an instant. More particularly after the biggest credit crunch ever recorded in the financial history, these companies sprout out to operation as if they are the only way to repair the credit worthiness rating of individuals. This business become stronger and more demanded after these years, simply because a lot of individuals need to avail credit agreements from financing companies to be able to sustain their needs. The growing need for these companies did not only made the already operating companies more stronger but it has also fueled the drive of many investors in investing new companies that offer repairing of credits.

Now there are too many credit repair companies operating in the United States; this made the Federal Trade Commission or FTC to assess the situation by posting warnings against scamming repair companies. This federal credit authority has affirmed that there are no legal ways to instantly repair even simple negative information accounted for by the major credit bureaus. The legitimate and legal ways of improving and repairing credit history records will need long time of waiting, conscious and resilient efforts from the account holders and account holder’s discipline to stick to his or her debt repayment plan.

Unfortunately even if this commission has been providing informative materials about credit repair companies, more and more credit account holders are buying these companies’ services. Many credit account holders after the credit crunch due to the recent global recession have found themselves in need of reliable companies to help then get better credit worthiness ratings at the shortest time possible. The sad truth is it is generally impossible to instantly improve the credit worthiness rating from the credit bureaus. The due processes alone that should be followed to legitimately file a dispute need a very long time before being recognized by the major credit bureaus.

The advertisement claims of many credit repair companies have made many credit account holders who availed their services to find themselves similarly unworthy of credits but with more expenses. The amounts paid by credit account holders who wish to repair their credit worthiness rating can sum up to thousands of dollars which could have been put in better use to pay off the debts that are the real cause of a lowered FICO score and credit report.

The worst situation that credit account holders can find themselves after availing the services of these credit repairing companies is being in a court hearing. There is only one way of instantly repairing a credit worthiness rating- fraud. Most of these companies that offer instant results will most probably be using fraudulent means just to prove that their services can instantly take its effects.

Some of the most common violations committed by these companies include lying with the Social Security Number in applying for a loan, obtaining Employer Identification Number from the Internal Revenue Service using fallacious reasons and wire fraud in applying for a credit account. Adding up to the federal law punishments for these crimes is the knowledge that these companies are most likely to disclaim its clients from availing their services during legal problems such as law suits.

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