Looking for a genuine and trusted credit repair company can be a challenge. If you search online, you can see several credit repair companies that offer aid to consumers with poor credit.
If you need further instruction to get yourself out of bad credit, here are five useful information on how you can find the best credit improvement service.
Understand the Credit Repair Process
It’s important to be aware about the process involved in repairing bad credit. You need to know the exact kind of service a credit repair company offers. You may come across agencies that promise instant debt relief. You may be told that you can magically erase past due debts or negative remarks from your credit report in exchange for a fee. Nevertheless, no person or agency can delete information from your credit report unless the details are found to be incorrect.
If your credit report contains errors, then you can request the bureau that issued your report to erase inaccurate information from your file. Upon receiving your letter, the bureau will conduct an investigation on the matter. After 30 days, the bureau will inform you about the result of the investigation and if your dispute is valid, the necessary corrections will be made. The bureau will also send you an updated copy of your report for free.
Therefore, a legal credit counselling agency can give you specific advice on how you can better management your finances. A counsellor can assist you in creating a debt repayment plan that suits you. Some credit repair companies may help you to negotiate your debts with your creditors or may even help you to reach a debt settlement. If you know the legal steps involved in repairing bad credit, you can avoid being a victim of credit repair scams.
More importantly, you need to work on improving your personal credit score by paying your outstanding debts and submitting your monthly payments on time. Do not believe a credit counselling company if it claims that it can fix your bad credit in a matter of weeks. Always remember that repairing bad credit takes time.
A legal credit repair company should not demand for upfront payment. The Federal Law prohibits agencies from soliciting money from before rendering service. Watch out for credit counsellors who earn money through commissions based on the number of people who sign up for the agency’s Debt Management Program or DMP. A counsellor who earns through commissions may recommend enrolment to the DMP even if other cost-effective solutions are available.
Check the Background and Reputation
You can check the credit repair company’s rating from the Better Business Bureau or BBB. You will also be able to see if there have been complaints or law suits filed against an agency. It is also a good idea to read reviews or testimonials from customers who have been able to improve their credit with the help of the credit counselling agency. It’s best to look for a credit counselling agency which has been providing service for at least five years or longer. This way, you will be able to check its history and track record along the years.
