Is Credit Repair Legal in Alabama
Updated: Jan 22, 2022
Is credit repair legal in Alabama?
Yes, credit repair is legal in Alabama. If you're a resident of Alabama and have a less than perfect credit score or a few blemishes on your credit profile you may be wondering is credit repair legal in Alabama or is it legal to pay someone to repair your credit for you? You may even be wondering if credit repair is right for you, if so should you do it yourself or pay a professional company. If you determine credit repair is right for you're probably wondering what your next steps should be?
Yes, credit repair is legal in the state of Alabama. All consumers have the legal right to challenge inaccurate and incomplete information that may be reporting on their credit reports inaccurately. It is also legal to pay a professional credit repair company or you can do it yourself. It is illegal for a company to communicate with you that you cannot repair your credit on your own.
What is credit repair?
How do I know if I need credit repair?
Are there any laws against credit repair in Alabama?
Can I repair my own credit?
Is credit repair expensive in Alabama?
What is credit repair?
Credit repair is the process of removing inaccurate, unverifiable, and incomplete information from your credit reports. This is done by contacting the credit bureaus and furnishers reporting the information on your credit report. Credit building is also an essential part of the credit repair process. If you have limited credit or no credit, credit building will be just as important, if not more, as getting negative information removed from your credit reports.
How do I know if I need credit repair?
Credit scores range from 300 to 850 and are used by creditors to determine your credit worthiness. A credit score below 700 is considered less than average. If your credit score is less than average or low you may need credit repair. If you can’t get approved for credit when you apply for new accounts that may be another sign that you need credit repair. Having multiple negative accounts reporting on your credit profile is another sign that you are in need of credit help.
Are there any laws against credit repair in Alabama?
At the time of publishing there are not any laws against credit repair in Alabama. A credit repair company does not have to be bonded to have clients in the state of Alabama. Although Alabama does not have any specific laws for credit repair the Credit Repair Organizations Act (CROA) and Federal Trade Commission (FTC) have laws in place to protect consumers from any shady business practices, such as no false representations and money being accepted before services are rendered.
To read the Credit Repair Organizations Act in full, visit The United State's House of Representatives record of the act here.
Can I repair my own credit?
Yes, you can repair your own credit. It is advised that you try to repair your credit on your own before you reach out to a professional so that you have a better understanding of the process. Although credit repair is legal in Alabama it is illegal for a professional credit company to tell you that you cannot repair your credit on your own.
Is credit repair expensive in Alabama?
If you will be using one of the top credit repair companies in Alabama prices may vary depending on experience. We have seen prices as low as $59 per month to a $1000 one-time fee for 6 months service. If you decide to repair your credit on your own, you may still need some extra money to invest in yourself.
If you don’t have a credit card or an installment loan you may need money to open secured credit accounts. You may also have to reach out to some of your creditors to request a pay for delete or settlement if the item is reporting correctly and has been verified.
When you are in the process of repairing your credit, you will also need credit monitoring, which can also be an additional charge. You can get a free copy of your credit report from annualcreditreport.com but you will have to go to each credit bureaus website’s site separately to review your credit reports. I think that a 3B credit report is better for reading and identifying errors on credit reports.
All consumers should review a copy of their credit reports every 30 days to ensure everything is reporting accurately. If there are items reporting that are incorrect or you are unsure about you may need to start the credit repair process. You can repair your credit on your own or you can hire a third-party company to assist you through the process. Whichever route you decide to take, if you are in Alabama you are free to repair your credit yourself or with a professional.
If you feel as if something is not right or if you can’t get a clear understanding of it stay away because 9 times out of 10 it may just be illegal, but the process of credit repair itself is LEGAL in the state of Alabama.
If you decide to start the credit repair process, please remember that your credit scores will not increase over night and it will take hard work, dedication, and knowledge to increase your credit scores and maintain them. Your credit profile is just as important. Sometimes your credit score can be high enough for an approval but your credit profile may be weak or contain negative information.
If you are unsure of what you should be doing or where to start reach out to a credit professional for a consultation or discovery call. A credit repair specialist should be able to review your credit reports and determine where you stand and what steps you need to take to increase your credit scores. Credit consultations are normally done at no cost. If you are wanting to purchase a new home, your cream car, or expand your business credit, credit repair may be the answer for you.
If you are a resident of Alabama and need credit repair of any kind now is the best time to get started. Stop getting denied and start getting approvals. Get your credit scores up.
There are many programs and companies available to assist you during the process, but you should do your own homework on the process before you decided to share your personal information with anyone. If you are in Alabama and are in need of a credit consultation or if you would like to schedule a consultation with a credit specialist, give us a call at 251-237-3700 or schedule a private 1 on 1 consultation at the link below.
