Things to Look For When Shopping For a Credit Repair Company

[Johnny Martinez]

A quality credit repair company could be one of the best investments you make for your financial future. A high credit score can make a difference in many areas of your life, from your home to the car you drive to work to your lifestyle. A bad company will not only make it difficult to achieve your credit goals but could also lead to your credit being worsened.

Here is a list of things you should look for when looking for credit repair companies. This will help you distinguish the good from the bad.

The length of time in business

It is simple to start a credit repair company. You can buy a variety of software programs that will allow you to start a new business in a matter of minutes. These programs do not provide expertise.

Credit repair is too important for your credit score to be left to an inexperienced person. A company that has been around for a while will be a better choice. They will have more experience and a greater chance of being in business for many years.

The company's BBB profile can be a great resource to see how long the company has been in operation. A company that does not have a BBB profile may be new or unrecognized.

Additional Fees

Federal Credit Repair Organizations Act says that no credit repair agency may receive or charge any money for performing any service for a consumer. This is in addition to the fact that the organization cannot accept any other valuable consideration. This was done to protect customers from companies that charge thousands or hundreds of dollars for services, and then refuse to provide the services requested or are unable to improve the credit score. Avoid companies that require payment in advance of providing services.

Physical Location

A physical address is a sign of stability and the intention to continue providing services long-term. If a company doesn't have a physical address, or has only a PO Box, they are more likely to disappear after receiving your money. Make sure you plug-in your company's address into a service like Google Maps to see the actual building. It is quite common to find the address is actually a private residence.

Payment Options

Credit repair companies should at least accept credit cards. If possible, they should process them directly, rather than using third-party services like PayPal. You can also take advantage of fraud protection services offered by your credit card company. Avoid companies that accept only cash, checks, and money orders.

Breadth of Services

Credit repair companies were founded in order to resolve credit bureau disputes. Although this method is effective in cleaning up credit reports, it can also be slow and ineffective. It does not address the 35% of credit scores that are affected by derogatory listings.

The most successful companies offer additional services like goodwill letters and direct creditor disputes, credit validation, and credit score counseling. You should ensure that you choose a company that can help you reach your credit goals.

You have the option to choose which items you wish to dispute

This is important for two reasons. The Credit Repair Organizations Act prohibits companies from making misleading or untrue claims. This includes disputing negative items you know to be accurate. There are instances when disputing negative items is not a good idea, such as when they are an older item or represent a legitimate debt that hasn't been paid. These items can lead to a lower credit score.

Too Good To Be True Promises

Legally create a new credit card report, guarantee 700 credit score, and permanently erase all negative information from a credit file. These are promises that seem too good to be true. It is illegal for companies to promise that they can positively impact your credit score. A new credit report is required to apply for credit.