How to Improve a Credit Rating With a Repair Service

Everyone is capable of improving their credit rating in the same way that repair services do--by exercising their rights under the fair Credit Reporting Act (FCRA). You may not wish to take on this task because it can be time-consuming or you may prefer to let someone with expertise handle it. A good credit repair service can remove many negative listings through filing disputes, but the Federal Trade Commission (FTC) warns that you must work with a legitimate firm.

Instructions

1

Look up the Better Business Bureau (BBB) grade for any repair services you are considering. The company could have a letter grade of A, B, C, D or F. You will also see the number of complaints and their general nature. Beware of companies that do not have a BBB listing. They may be very new or they may have recently changed the company name to hide from prior complaints.

2

Contact the FTC and your state attorney general's office to see if any of the firms have been investigated in the past or are currently being scrutinized. These two entities sanction repair services that try to rip off consumers so they are often aware of whether a firm is engaging in questionable practices.

3

Narrow down your list, dropping any services that have excessive complaints against them, and ask the remaining firms to detail how they will improve your credit rating. Drop services that recommend illegal tactics like filing frivolous disputes against every negative item, even if there is no mistake, or getting an Employer Identification Number to replace your Social Security Number. You will be liable for the consequences of these acts.

4

Ask for a full disclosure of the repair service's fees, how long it will take to improve your credit rating and when it expects to be paid. The FTC explains that it is illegal to be asked for an up-front payment.

5

Choose the repair service that makes the most realistic promises and asks for an affordable fee that does not have to be paid until your credit rating has been improved. Ask the company to put everything in writing so it can legally be held to the agreement.

6

Review your credit reports from TransUnion, Equifax and Experian once the repair process is complete. The repair service has expertise in finding legitimate dispute reasons that you might miss on your own. Make sure that a significant number of negative items have been pulled from each report in accordance with the company's promises.