Posted by Robert Smith on January 31, 2000 at 10:14:56:
A credit repair company cannot hurt your credit unless they try to use fraudulent means to repair your credit history. If the credit reporting agency detects fraud, then they could place a fraud alert on your credit report and you would be worse off than when you started.
I say “never” pay a fee to a credit repair agency for this reason: there is nothing that they can do for you that you can’t do for your self to repair your credit. They will either charge you, or ask you, to get copies of your credit history (TRW, Experien, Equifax). Then they will look for mistakes on your credit report and ask the reporting agency to have the mistakes removed. Next, they’ll contact your creditors, on your behalf, and attempt to negotiate new payment terms. In exchange for your payments, you try to get the creditor to promise to remove certain derogatory information from your credit report. If your credit problems are not bankruptcy related, but just based on too much consumer credit and slow pays, then they will give you information on budgeting. They may also explain debt consolidation. At this point, everything they have done, you could do yourself. Additionally, all of the information they give you on consolidation and budgeting, you could get from various consumer groups for free. Try your local library or a book store for books on credit repair. In the end, the only fees you should pay are for your credit reports, which are about $5-8 each, and postage. The first lesson of budgeting: Never pay for something you can get for free.