Credit Repair is defined as to get all the inaccurate and misleading information out of your credit record to improve your credit score
. The point to remember is it only includes exclusion of all the WRONG billing or all the information that can not be verified about your credit. A bad credit score is obviously a hindrance to your further account dealing in both personal and professional life. Credit score improvement and asking for all the errors to be corrected is obviously legal and is your basic right. But when you hire a credit repair company to do it for you by hooks or crooks you are definitely getting yourself into a legislator problem. They claim to solve your credit score problem by using some so-called loopholes in the documentation, but this is absolutely an illegal way to get it fixed.
Credit Repair organization act is the one they use it for your credit repair. The legal attorney will definitely do it legally for you as much as possible but these companies render you apprehended in all the legislation.
Various types of illegal procedures they may offer you or do these with your account without letting you know about the procedure. These include:
1.They"ll claim all the positive and negative objects in your account so as to remove all the possible entities out of your account. Sometime it may happen that they even empty your account for no reason clearing all the objects. But in long run that"ll obviously raise the suspicion of banks and you may get bankrupted after sometime due to accusation of having a wrong account. Similarly the companies with whom you are working when come to know that their previous deal is no more in your account they can even refuse to have further deals with you.
2.They try to get an extra EIN (employee identification number) for you so you can get rid of all the previous information in your record. But that again is illegal with so many bad impacts in your future dealing with banks. This is a number that is given by IRS to a corporation for tax purposes. By having a new number with wrong information you are actually denying all the previous taxes you paid or you actually didn"t.
3.They will try to get all your unpaid dues go on and then a bankruptcy status happens. Then they will challenge this status and claim to remove all the debts on your behalf by paying only one of them. Well this will obviously cause a serious problem because in many cases you can get into repeated bankruptcy forever. Any detailed inquiry about your credit score will push you into a serious trouble. So avoid trying this illegal method either.