Why Credit Repair Services Have Such a Bad Reputation
Why Credit Repair Services Have Such a Bad Reputation
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Home Page > Finance > Credit > Why Credit Repair Services Have Such a Bad Reputation
Why Credit Repair Services Have Such a Bad Reputation
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Posted: Sep 03, 2009 |Comments: 0
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There is an industry out there that, even though it is regulated by federal legislation and has been in existence for decades, is among the most maligned in the country. Despite the fact that thousands of people have taken advantage of the services offered by the organizations and individuals within the industry, there are still people who are adamant that the whole industry is a scam and any company operating within it is a con-artist.
Reading the title if this article, it is pretty obvious that the industry we are talking about here is the credit repair industry. Despite the fact that the oldest credit repair companies have been around for 20 years, that credit repair companies have been able to help people remove millions of negative items from their credit reports, and that the federal government created the Credit Repair Organizations Act in order to regulate credit repair companies and not to make them illegal, there are “experts” in the media, in major corporations, and in government positions that claim that any company who offers credit repair services should be avoided.
There are a few reasons why so many people this credit repair services are a scam. For starters, there have been far too many “credit repair” clinics that truly were out to dupe people. These clinics promised the world but ended up just taking people’s money or in some cases getting them involved in credit repair schemes that were illegal. Left and right people were falling for these credit repair scams to the point that the media and legal attention these clinics received was enough to put a cloud over the entire industry. Instead of bothering to try separating the good from the bad, many people simply decided that the entire industry was fraudulent.
And making this conclusion was pretty easy because there are some pretty massive institutions that want people to believe that credit repair services are not to be trusted. And who are these institutions? They are the credit bureaus who manage your credit report and the lenders who use your credit scores. The credit bureaus so not want people to work to repair their credit. It is bad business. The credit bureaus make money by collecting information about you, putting it together in a report, and selling it. Credit repair causes them to have to do additional work that costs them money and when you are dealing with hundreds of millions of credit reports, it would cost them dearly if everyone out there started trying to clean up their credit. Many lenders, on the other hand, don’t want you repairing your credit because when you increase your credit score, they cannot charge you as high of interest rates. So, given the size of the companies that would prefer you didn’t repair your credit and the fact that their profits are on the line, it is little wonder that when people look to confirm their doubts about credit repair services, they are able to find plenty of information. Also factor in the huge budgets these organizations can allocate for lobbying lawmakers and seeding stories in media outlets and there is little wonder why the amount of anti-credit repair information dwarfs anything from the pro-credit repair crowd.
Combine these factors and it is easy to see why so many people whole-heartedly believe that there is no such thing as a legitimate credit repair organization and why it is so difficult to convince them otherwise.
Someday the situation may change. As more and more people are able to successfully increase their credit score with help from credit repair organizations there will be a broader base of people who know credit repair works to contend with the population that believes it does not. But until then, the consumers who do their research, find a legitimate credit repair service, and work to clean up their credit will be the lucky ones because their credit scores will look that much better than those of all the people who will do nothing.
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Don Tate –
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Choosing the right credit repair company has helped thousands realize amazing results. TheTopTens provides a list of top credit repair companies as well as top ten lists for car insurance companies, debt settlement companies, and tax preparation websites.
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credit repair, credit repair service, credit repair companies, credit repair scam
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