Finding the Best Credit Repair Company

As is the case with mechanics, there are good credit repair companies and companies to steer clear of. Below are a few tips for helping identify the best credit repair company for your needs.

1. Look for how long the company has been in business

Credit repair is a booming industry with many new entrants coming and going all the time. Make sure you select a company with a solid track record that you know will be in business for the long run. The last thing you want is for the company to go away 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 inform you of this fact via a written disclosure statement when you sign up for services. Make sure you receive this statement.

In addition, credit repair services are not guaranteed to work because ultimately, whether or not something gets removed from your credit reports is up to the credit bureaus and your creditors. Watch out for companies that guarantee to improve your credit score or get you approved for a loan.

3. Make sure their billing policy is legally compliant

By law, credit repair companies are not allowed to accept any fees before performing the agreed upon services. This is to protect people from con-men who would promise to be able to clean up their credit report for an upfront fee (often times many hundreds or thousands of dollars) and then disappear once the payment was received. This is why most credit repair companies charge a modest fee for creating your account (you should not be charged as soon as you sign up and will in many cases have a few days before being charged), and a monthly charge after the previous month's services have been performed.

4. Know the signs of a credit repair scam

Because so many people are desperate to fix their credit but have little knowledge of how the credit system works, scammers have set up phony credit repair clinics claiming to help people but ultimately only end up making the situation worse. The Credit Repair Organizations Act was established to help protect people from becoming a victim of a credit repair scam by establishing rules the credit repair companies must adhere to. Click here to learn these rules and protect yourself from being taken advantage of.

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