Credit Repair Companies: Four Tips for Finding a Good One
http://www.netarticles.org/articles/4814/1/Credit-Repair-Companies-Four-Tips-for-Finding-a-Good-One/Page1.html
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 make the most of their credit score, and how credit repair companies may be able to help. By Dona Barlett
Published on 01/3/2010
As is the case with automobile mechanics, insurance agents, plumbers, and every other profession, there are quality credit repair companies and companies to watch out for. Below are a few tips for identifying a credit repair company you can trust.
Credit Repair Providers: Four Tips for Finding a Good One
As is the case with car mechanics, insurance agents, plumbers, and every other profession, there are good credit repair companies and some to watch out for. Below are some tips for identifying a credit repair company you can trust.
1. Look for how long the company has been in business. Credit restoration is an industry on the rise with new entrants coming and going. Try to select a company with a solid foundation 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 inform you of this fact via a written statement titled "Consumer Credit File Rights Under State and Federal Law" when you sign up. Make sure you are presented with this document.
In addition, note that credit repair services cannot be guaranteed to achieve your desired results because ultimately, whether or not something gets removed from your credit record is up to the credit bureaus and your individual creditors. Watch out for companies that guarantee to raise your credit rating or get you approved for a loan.
3. Make sure the billing policy follows the rules. By law, credit repair companies are not permitted to collect any fees before performing the agreed upon services. This is to protect people from scammers who would promise to clean up their credit report for an upfront fee (often times charging thousands of dollars) and then take off as soon as the payment was received. This is why most credit repair companies charge a modest 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 fee collected after the previous month's services have been performed.
4. Know the signs of a credit repair scam. Because so many consumers are desperate to fix their credit but understand little about how the credit system functions, scammers have set up credit repair clinics claiming to help people but only make the situation worse. The Credit Repair Organizations Act (CROA) was established to protect people from becoming a victim of a credit repair scam by setting rules credit repair providers must follow. Knowing these rules will help you avoid being taken advantage of.
1. Look for how long the company has been in business. Credit restoration is an industry on the rise with new entrants coming and going. Try to select a company with a solid foundation 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 inform you of this fact via a written statement titled "Consumer Credit File Rights Under State and Federal Law" when you sign up. Make sure you are presented with this document.
In addition, note that credit repair services cannot be guaranteed to achieve your desired results because ultimately, whether or not something gets removed from your credit record is up to the credit bureaus and your individual creditors. Watch out for companies that guarantee to raise your credit rating or get you approved for a loan.
3. Make sure the billing policy follows the rules. By law, credit repair companies are not permitted to collect any fees before performing the agreed upon services. This is to protect people from scammers who would promise to clean up their credit report for an upfront fee (often times charging thousands of dollars) and then take off as soon as the payment was received. This is why most credit repair companies charge a modest 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 fee collected after the previous month's services have been performed.
4. Know the signs of a credit repair scam. Because so many consumers are desperate to fix their credit but understand little about how the credit system functions, scammers have set up credit repair clinics claiming to help people but only make the situation worse. The Credit Repair Organizations Act (CROA) was established to protect people from becoming a victim of a credit repair scam by setting rules credit repair providers must follow. Knowing these rules will help you avoid being taken advantage of.