Credit Cleaning Services - What Are They Going To Do?

Credit cleaning services will work to remove the negative items on your credit reports. These items include: charge offs, collections, late payments, bankruptcy, repossession, student loans …

Typically they will have attorneys on staff but you should expect a paralegal to do most of the work. They are going to use the dispute process to challenge the validity of the negative items on your report.

Congress passed the Fair Credit Reporting Act in 1970 and this gives you the right to dispute and challenge any item on your report that you feel is inaccurate or made in error. This law was passed to help you protect you ever increasingly important credit report.

How Does The Process Work?

The first step is you must get your file with each bureau. This way you can identify what negative items are hurting your score. Then a dispute letter will need to be written and sent certified mail to each bureau. This is your dispute, and it must be sent to all three bureaus.

When the bureau gets your dispute they will first have to find it valid and then they will investigate. They will contact the collection agency or lender and ask them to verify the account, the balance, and the dates.

It is estimated that over 80% of investigations result in the removal of the negative item. This is regardless of the accuracy of it. Why and how? First, because it is federal law that if the item can not be verified it must be removed from your history.

The second reason is purely financial, often once a lender has sold an account to a collection agency because and give up their legal right to collect on it they will not keep the paper work associated with it. It costs money to keep the information and a further expense for the lender to have a person actually verify the account. Thus, frequently investigations result in the deletion of the item.

You should additionally take steps to settle any outstanding debts. However do not just go and pay off these debts because your credit will see no benefit, you may be able to sleep easier but it will do nothing else. Instead you need to negotiate with the debt collectors.

The first thing to do is ask for debt validation. This will require the debt collector to show you that they legally own the right to collect your debt. There is a rumor in the debt industry that agencies will often sell accounts and continue to seek payment for them. In other words they will still contact you about paying the debt even though they no longer own it or can legally contact you about it.

When it comes to your credit score and your debt it influences so much of your life that you really can't go wrong with hiring a professional. They can help you with both these areas and they are experts in consumer credit laws.

Make sure to shop around and find the right service for you. You should expect an upfront fee and then a monthly fee; you shouldn't need to pay anymore than a few hundred dollars at the end of the day.

Unfortunately we have seen some unethical companies that will guarantee results, which is a red flag. Additionally some companies will want thousands of dollars up front. You do not need to pay this much and it should be a sign that the companies is not legit.


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For a free credit consultation call 1-800-232-2903 or for more about credit cleaning services and how they will clean my credit history of negative items visit us.