Finding a Credit Repair Company You Can Trust
- By Dona Barlett
- Published 01/3/2010
- Credit
- Unrated
Dona Barlett
Credit Repair BEST provides information about credit repair as well as a moderated question and answer forum where visitors can learn more about the credit reporting system, how they can improve their credit score, and how credit repair companies may be able to help.
View all articles by Dona Barlett
As is the case with car mechanics, chefs, general contractors, and every other profession, there are reputable credit repair companies and others to avoid. Below are some tips for identifying a credit repair company you can trust.
1. Look for how long the company has been operating as a credit repair organization. Credit restoration is an industry on the rise with new entrants coming and going all the time. Try to go with a company with a solid track record that you know will be there for you in the long run. The last thing you want is for a company to go under before they are done helping you.
2. Look for full disclosure. There is nothing a credit repair company can do for you that you cannot do for yourself. In fact, credit repair companies are required by law to make you aware of this via a written statement when you sign up for their services.
On top of this, credit repair services are not guaranteed to work because ultimately, whether or not something gets deleted from your credit record is up to the credit reporting agencies and your creditors. Be wary of organizations that guarantee to improve your credit score.
3. Make sure the billing policy follows
the rules. By law, credit repair companies are not permitted to accept any fees before performing the agreed upon services. This is to protect people from scammers who would promise to repair their credit report for an upfront fee (often times charging thousands of dollars) and then disappear once the payment was received. This is why most credit repair providers charge a setup fee for creating your account (you should not be charged immediately and will in many cases not be charged for a few days), and a monthly charge after the previous month's worth of services have been provided.
4. Know the signs of a credit repair scam. Because so many Americans are desperate to fix their credit but understand little about how the credit system functions, scammers have set up phony credit repair clinics claiming to help people but ultimately end up making the situation worse. The Credit Repair Organizations Act was established to protect people from becoming a victim of a scam by establishing rules credit repair companies must follow. Knowing these rules will help you avoid being taken advantage of.
1. Look for how long the company has been operating as a credit repair organization. Credit restoration is an industry on the rise with new entrants coming and going all the time. Try to go with a company with a solid track record that you know will be there for you in the long run. The last thing you want is for a company to go under before they are done helping you.
2. Look for full disclosure. There is nothing a credit repair company can do for you that you cannot do for yourself. In fact, credit repair companies are required by law to make you aware of this via a written statement when you sign up for their services.
On top of this, credit repair services are not guaranteed to work because ultimately, whether or not something gets deleted from your credit record is up to the credit reporting agencies and your creditors. Be wary of organizations that guarantee to improve your credit score.
3. Make sure the billing policy follows
4. Know the signs of a credit repair scam. Because so many Americans are desperate to fix their credit but understand little about how the credit system functions, scammers have set up phony credit repair clinics claiming to help people but ultimately end up making the situation worse. The Credit Repair Organizations Act was established to protect people from becoming a victim of a scam by establishing rules credit repair companies must follow. Knowing these rules will help you avoid being taken advantage of.