Explore the internet and you may find several companies and organizations providing credit repair services to consumers in need of assistance.
The question is which of them is made for real? Which company will you trust that may help you repair poor credit? If you are not sure about what to find, it is possible to certainly be a victim of fake credit counseling agencies or illegal firms that are out to earn an income.
On this post, we present valuable suggestions about how one can select the best credit restoration service out of the many options in the market.
1. Check history.
It is recommended that you look for a company that has been providing credit repair services to consumers for at least five years or longer. This way, you can easily check the company’s track record and be sure that you are dealing with a company you can trust. You may come across newly established credit repair and credit counselling agencies but you should be a lot more careful as there are many companies out there that offer debt relief services without a license.
2. Use the internet to compare.
It will be much easier to do research and comparison online. This way, you can save time and effort as you examine the kind of service that each potential credit counselling agency or credit repair company offers. You can also check out websites that review top credit repair companies in the market and read testimonials from consumers as well.
3. Know the terms of payment.
The Credit Repair Organizations Act clearly states that credit repair companies cannot demand payment unless the services have already been rendered. Thus, if an agency asks for an upfront payment before providing help, you should take your business somewhere else.
Furthermore, agencies should not impose excessive fees. After all, they are offering assistance for consumers who are stuck in bad credit. See to it that you are aware of the exact fee you are expected to pay after the credit repair service has been provided.
4. Watch out for counselors who earn by commissions.
Find out how a credit repair company pays its counsellors. If a counsellor is paid on commission basis, there is a risk that a counsellor will insist that you sign up for a Debt Repayment Program or that you take out a debt consolidation loan from the agency even though other solutions are available.
5. Check the BBB.
Another way to learn about a company’s credibility is to check the Better Business Bureau. The BBB gives ratings to different businesses in the US based on performance, credibility and other important factors. You will also be able to see if there have been records of complaints or cases filed against a credit repair agency from the BBB.
6. Understand the legal process.
You should be well aware about what kinds of services a credit repair company or credit counselling agency can do for you. Some agencies may resort to illegal practices and if you’re not familiar with law, you may be tricked into signing up for the wrong kind of credit repair service.
This is going to come in very handy for doing my research on choosing the best credit repair company. Couple of important things that I didn’t know of are the upfront payment not being legal and also the important of knowing whether or not the counselors earn by commissions, these are two very important things that should obviously be asked before you hire a credit repair company. I think I’m ready to give you guys a call.
I was actually planning to hire this new company that was offering a great deal, but after reading this article it makes me think twice about them. I guess it is true that you should try to avoid working with companies that are brand new in this field, after all, your credit isn’t something you want to gamble on. My credit is bad enough as it is, I should probably go with a more established company, even if I end up paying more for their service.