When searching for a credit repair company, it can quickly become confusing and turn into a daunting task. Outlined below are the three most important factors when choosing the right company for yourself and what you need to look for. Additionally, there are two warning signs of bad services, which should make you think twice.
In some rare cases you’re going to need legal representation to write a letter on legal letterhead simply, file court intervention with a creditor, use legal tactics to force collection agencies or the credit bureaus to follow federal laws.
These lawyers are going to be experts on the continuously evolving consumer credit laws. They also will be fully versed in the debt collection laws and will be able to assist should you need to settle any debts.
When you hire a professional service to work on your behalf, they will use the dispute resolution process that is open to every citizen under the Fair Credit Reporting Act passed by Congress. What happens is that a letter of protest will be sent to each credit bureau to ask them to investigate the item you wish to remove from your credit report.
If your credit report contains many negative elements, you can expect to use a service for a few months. Necessarily, the service will act on your behalf, and you are invited to forward any communications you receive from the credit bureaus to the service so that everyone is on the same page.
The level of customer service you get with the service you choose should be exceptional. You should have an unlimited amount of time and have seen some services even provide a dedicated paralegal who is at your disposal all the time. It’s important to stay up-to-date with the status and progress of your reports.
Some unfortunate individuals pay thousands of dollars for credit repair companies to work on their behalf. This is most common when hiring a private attorney who ends up charging the individual by the hour.
Instead, you should look for a service that charges a low, upfront fee and then a monthly fee. Commonly individuals spend approximately nine months using the service.
Be warned there are some companies that will charge you outrageous fees or use unethical tactics. The company you hire should be working to dispute bad credit with each of the three major credit bureaus, and they can also assist you in some debt negotiation.
Two Common Warning Signs
Offers A Guarantee
When it comes to credit repair, no legitimate company is going to guarantee you of anything. Instead, you should look at the companies’ past results, what old customers have to say about their experience and refund policy. They Applaud you for taking action to fix this issue of a low credit score. New economy lending institutions have drastically increased their approval requirements. Additionally, institutions are seeing more and more employers check potential job candidates credit record before offering them a position.
A company wants you to use ‘piggyback’ on a credit card. This is an old outdated system where you would co-sign on a credit card with an individual with excellent credit, and it would help you and your low score – it hasn’t been effective in years!