Many Americans suffer from bad debt and don’t know how to fix their scores. At least 25% of customers don’t understand how to repair their credit scores.
Cleaning your credit report takes a lot of hard work and a lot of time, it demands the help of the best credit repair company. Credit repair services could remove errors and tackle fraud issues in your report. They can also negotiate with creditors on your behalf to speed up the resolution of any dispute.
If you have decided to work with a professional credit repair services, it would be best to take caution. You’ll come across many credit repair companies, and choosing the right one can be tedious. Here’s what to look for before deciding which the best credit repair company is.
Has Positive Reviews
It can be a challenge pointing out whether a credit repair company is legible from what they may tell you. Sometimes, even their websites could paint a misleading picture of their reputation.
So it would be best if you researched more about the company from neutral sources. Ask your friends or family if they have information about your selected companies. Sometimes, they could refer you to their favorite credit repair services.
You may also check what other customers are saying on the leading review sites. Examples of review sites on credit repair companies include Yelp, AngelList or Google. You can also read other customer complaints on the Consumer Financial Protection Bureau site.
No Upfront Payments
You can protect yourself from illegitimate credit repair by choosing the right company. The credit repair organizations act prohibits credit repair companies from asking for prepayments.
Credit repair payment terms are also clear, and most of the time, very reasonable. The best credit repair company won’t ask for payments until they meet their part of the contract.
They can only ask for payment after completing the agreed services. Or after there’s an improvement in your credit score. Even an agreement charging you per negative item in your report could be a breach of the CROA law.
Useful Range of Services Provided
Given that you’re hiring for a service that you could try on your own, you would want value for every coin spent. Credit repair companies provide a varying scope of services and the best ones are usually all-around. Some companies may charge you high fees after offering partial services.
Make sure your credit repair company offers enough services. Ask if they will file disputes with credit bureaus and follow up with your creditors.
You want to work with a credit repair company that tackles disputes on all levels. The best ones may deal with collection agencies and also provide credit counseling.
Transparency During Signing of the Contracts
Make sure you have in-depth information about credit repair. Read blogs to learn how credit repair works. Reviews could inform you about what other customers have experienced. The Federal Trade Commission can also provide you with useful insights on credit repair.
With enough research, you can tell whether your credit repair company is transparent. The law requires every credit repair company to inform clients about their rights. The CROA act protects you against deception and dishonesty from credit repair companies.
Before signing the credit repair contract, make sure you know your rights. Ask for a copy of the Consumer Credit File Rights and the Notice of Cancellation. That way, you can discern the risk you’re exposed to before hiring credit repair services.
Experience in Credit Repair Services
Focusing on experienced credit repair companies could guarantee better results. A credit repair company that has stayed in the industry for more than three years could be more adept.
You can check a credit repair company’s legitimacy from its background. A new company may not have a history of solving cases that are like your situation.
Only go for new credit repair companies if only recommended to you. Such companies can be reliable if they have experienced professionals in their teams.
Licensing, Accreditation, Insured and Abides by Laws
The best credit repair companies are compliant with all the legal requirements. Confirm if your credit repair company is accredited by the National Association of Credit Services Organizations. Check if the company is licensed, bonded and insured.
A legit credit repair company has all the documentation and abides by the industry laws. Some agents may tell you that licensing isn’t mandatory. But it’s one of the documents you can use to check credibility.
Doesn’t Overpromise or Give Guarantees
Credit repair services follow a routine structure of operating. Your company is likely to ask for your credit reports from the three known credit bureaus (Equifax, Experian and TransUnion). The companies will then review the reports to find out the cause of your bad credit scores.
Your score could be poor because of bankruptcy, tax liens, or bank liens. It’s illegal for a credit repairer to overpromise or guarantee to improve your score. The company can only dispute invalid errors.
They will also negotiate with your creditors and collection agencies. Any promise to remove valid issues in your report is a warning against a dishonest company.
Presence of a Physical Address
A physical location is often a sign of credibility or professionalism. You can tell the company is serious about earning trust and has nothing to hide from the public.
It can also be easier to review a company that has a physical location. Locals can confirm that the company is genuine, given its reputation. You can also feel reassured that the company is legal.
Have You Found the Best Credit Repair Company?
Not all credit repair companies are in the market to help you. Some will take your money and fail to deliver what they’ve promised or even close to it.
The signs to the best credit repair companies are clear. You can save your time, money and credentials by heeding the tips in this article. Be sure to do your research and take not of red flags.
For more tips and tricks on personal finance, check out the rest of the articles on our blog.