If you're considering hiring a credit repair specialist to help you clean up your credit report, or if you're thinking about becoming one yourself to help others repair their credit, you might be curious about the role of a credit repair specialist. Those in need of credit repair services can learn more about whether or not hiring a specialist is in their best interests and which specialists are right for them. If you want to work as a credit repair specialist, you need to know what you're doing so you can help your clients. Note Credit repair companies that are legitimate work with consumers to clean up their credit reports and improve their credit scores.
Certifications for Credit Repair Specialists
Credit repair specialists are exempt from any professional or licensing requirements. This makes determining who is legitimately qualified to work on your credit and who you should avoid difficultly. The current credit repair law was enacted to protect consumers from exploitation by dishonest credit repair specialists and other credit repair companies. The law specifies what credit repair specialists are permitted to do and what they are not permitted to do, but it does not specify who is permitted to perform credit repair services. While there is no law or governing body for credit repair specialists, there are professional organizations that educate and certify credit repair specialists, which can help weed out unqualified credit repair specialists. Instead of a credit repair software company, look for a credit repair specialist who is certified by a non-profit organization such as the Credit Consultants Association or the Association for Financial Counseling & Planning Education. Tip: Although no formal education is required to work as a credit repair specialist, having a degree or prior experience in finance or a related field can be advantageous.What skills should a credit repair professional have?
The credit and credit repair laws should be familiar to a credit repair specialist. This includes the following:- The Credit Repair Organizations Act
- The Fair Credit Reporting Act (FCRA)
- The Fair Debt Collection Practices Act (FDCPA)
- The Fair and Accurate Credit Transactions Act
Credit Repair Specialists Who Are Self-Employed vs. Those Who Are Employed
Some credit repair specialists may be employed by a credit repair firm or a multi-level marketing firm. If this is the case, you should thoroughly vet both the organization and the individual specialist you'll be working with. If you work for a multi-level marketing company, keep in mind that the person who signs you up may not be the same person who works on your credit. Furthermore, you could be recruited to join the company and recruit others with a credit repair MLM.The Law Regarding Credit Repair Experts
The Credit Repair Organizations Act may apply to the credit repair specialist (a law that prevents credit repair companies from taking advantage of consumers). They might also be governed by the Telemarketing Sales Rule. Only after services have been rendered should a credit repair specialist charge you; they should not guarantee specific results or promise that information on your credit report will be removed. Before performing any services on your behalf, credit repair professionals are required by law to provide you with a written contract. They shouldn't also tell you not to contact credit reporting agencies directly. They should make sure you understand your rights to dispute information independently. According to credit repair experts, you should be given a three-day grace period before canceling your credit repair contract. They shouldn't ask you to give up any of your rights, either.Credit Repair Specialists: What Do They Do?
Your credit reports from all three credit bureaus are reviewed by credit repair specialists. They might ask you to bring in your credit report, or they might use software to pull and monitor information from it.According to the Fair Credit Reporting Act, a knowledgeable credit repair specialist will comb through your credit report for information that can be removed. Important: Reputable experts will not advise disputing everything on your credit report to see what goes away and stays the same. Credit repair professionals assist with the writing of appropriate letters to credit bureaus and debt collection agencies. These letters should be tailored to your credit information rather than generic dispute letters that the credit bureaus may dismiss. They can either mail the letters for you or provide them for you to mail. Professional credit repair specialists can present you with a number of options for dealing with negative items on your credit report, weigh the benefits and drawbacks of each, and help you choose the best course of action based on your circumstances and long-term credit and financial goals. Some of the options include disputing, paying off, negotiating removal, settling, or waiting out the credit reporting time limit.Information Privacy and Security
If the information a credit repair specialist collects from you falls into the wrong hands, it can be used to steal your identity. Maintaining your credit repair results requires a high level of privacy. Credit repair professionals should have a system in place to protect their clients' privacy. They should have a privacy policy in writing that explains what information is collected and how it will and will not be used. To avoid fraud and identity theft, ensure your information is encrypted and securely stored if you submit it electronically.