Are professional credit repair companies good to use?
I have "Fair" credit and I'd like to improve it before buying a car, getting married, and maybe buying a new house. The bumps & bruises I have are: -2 late payments (30 days) on my Capital One card that I've had open for over 4 years. The late payments were both about 18 months ago. -I had a collection I paid off from Verizon Wireless. I had no idea I had a collection out or even a balance because they sent the notices to the wrong address and attempted to call on the PHONE NUMBER I CANCELLED! The collection is the big deal. I want that off my credit. Unfortunately, I'm extremely busy at work and really don't want to spend my very rare free time playing lawyer. I found a professional credit repair company advertised locally and contacted them. It sounds like they dispute things over and over until they are taken off my credit report. Is this ok? Does it usually work? Could I just call up Verizon Wireless and ask them to take that collection (that I've paid off) off my credit?
Public Comments
- You could call Verizon, explain the circumstances and ask them to remove it. It might be better to write a letter instead. You also have the right to put a statement in your credit file explaining the episode and I'd be sure to do that. It is hard to pay a bill you don't know you have. As for prof. companies, I'd be dubious. Try to handle it yourself first. You aren't going to be able to get the Cap One late payments off until they vanish from old age. Unfortunately, that is the way the system works.
- It sounds like you paid everything off, it's just the slow pays holding your credit score down. If you have paid off your Verizon account it should no longer be on your credit report unless it says "paid in full" or "settled by account holder" if it says paid in full that's not so pad. If it says settled, which would mean they settled for less than you owed in a lump sum, that can bring you credit score down. Try calling Verizon or the collection company and try to pay off the remaining balance. Working with a 3rd party is never the right decision. They only want to make money and the further in debt you are, the better for them. Often times they say things like "we will act on your behalf" and ask you to sign a limited power of attorney. creditors hate it when these third parties get involved, and when they start waiving around your power of attorney and saying they want to settle, it will be you who gets bent over in the end. Anything you can pay this company to do for you, you can do for yourself. It's easy to dispute debt. When you get a collection letter it usually give you 30 days to dispute. Just write them a letter like.. "Due to multiple revolving accounts please provide proof of debt" if they dont mail you a copy of your signed contract in 30 days you're off the hook...but, no that hardly ever works
- Send a written agreement to Verizon that they will agree to remove it from your credit file upon receipt of the agreed-to amount...once you get that agreement...pay them....NEVER accept verbal promises...get the terms in writing first. Don't waste your time with a credit repair company.
- They work but you need to find a company that isnt going to charge you every month; they like to take longer to milk more money out of you. My brother used www.totaldebtsolutionsllc.com and their free evaluation form or toll free number. It worked for him- that's all I know.
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