There have been consumers who have sought to repair their bad credit through the use of bad credit repair services, but there are those who feel that consumers who believe they may benefit from these services could also use options like secured credit cards to rebuild their bad credit score. Obviously, a consumer’s bad credit situation, financial habits, and the availability of services and secured credit cards can play into what options may be best for an individual when it comes to increasing their bad credit score, but there are some core principles which must be adhered to, according to sources like the FTC, when it comes to using bad credit repair services.
Obviously, there have been consumers who have turned to alternatives like secured credit cards when it comes to repairing their bad credit score. Individuals who are able to acquire a secured credit card have typically been those who were in a position where they did not have debts remaining, which were the source of their bad credit score, and could begin spending on their card and promptly paying off the balance on their secured card from month to month.
However, when it comes to dealing with credit repair, resources like the FTC have often cautioned consumers about using debt relief for credit repair organizations as there are many fraudulent companies that are attempting to take advantage of consumers in a bad situation. Since there are many men and women who, at the beginning of the new year, often plan to begin combating debt and getting their financial life back on track, this may provide opportunities for fraudulent organizations to take advantage of these consumers.
Yet, the FTC and other advisers often caution consumers to research any company who offers debt relief services and make sure they are adhering to rules concerning debt relief for credit repair assistance. Some of the marks of fraudulent organizations have been that they require that a consumer pays for services before they are provided, do not disclose their practices or fees, and advises that a consumer not contact their creditors directly.
In truth, reputable bad credit repair services and debt organizations will not attempt to charge a consumer before any services are rendered, will provide a pricing structure or an outline of fees before a relationship has begun, and will typically have some form of accreditation with a national credit counseling organization.
Consumers who have used options like secured credit cards to rebuild their credit score have usually been those who can practice smart financial habits and budgeting techniques, but understandably, there are some consumers who may need additional help through these bad credit repair services. However, when it comes to either erasing bad credit debt so that one can begin to increase their bad credit score or simply seek out financial assistance which can put a consumer on the track to a better credit score, advisers say research must be conducted and discretion use by consumers who feel that a credit counseling organization or a debt relief company is their best option when it comes to repairing their finances.