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Choosing The Right Credit Repair Company

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Many individuals have found themselves with credit scores low enough to keep them from getting a good rate on auto loans, mortgages or other types of lines of credit. There are a lot of consumers in the U.S. today whose credit scores will not get them any credit at all, even at a higher interest rate. There are many events which cause individuals to end up with bad to fair credit scores. Such life changing events are divorce, death of a spouse, health issues which lead to many expensive medical bills, or loss of a job. Due to the down turn in the American economy over the past decade, many have found themselves trying to make ends meet on unemployment benefits, just their spouse’s income, or worst yet, no income at all.

So now you find your economic situation has improved and you want to get on the road to a better credit score. Just what options do consumers have when it comes to repairing their credit scores? Obviously, you can start by making all payments on time and lowering your debt to income ratio. But this takes a very long time for an individual to do on their own. It can take years of on time payments. Depending on the amount of debt you have, making on time monthly payments could take a year or longer to reduce the total amount of your debt.

There are some things individuals can do themselves to remove some items from credit reports, such as inaccurate information, etc., but the process can be overwhelming. In order to be effective, these things need to be requested from all three major credit reporting agencies. If you attempt to do this yourself and you miss just one item from one of the three reporting agencies, your hard work might end up being for naught. Look at it this way, you can possibly self-diagnosis your medical condition as a cold or a virus, but you need a medical professional to help with something more serious.

If you are looking to obtain a mortgage, auto loan or other credit, hiring a credit repair company might be right for you. Before you hire a credit repair agency, there are some things of which consumers should be aware.

There are some great legitimate credit repair companies out there who can assist, but there are also some scam artists/companies who will simply take your money and then do nothing at all. How can you ensure that the company you are about to hire is a legitimate one?

First, do some research on the potential credit repair company on the internet. Search to see if the company has many negative reports showing up, such as consumers reported the company took their money and then did not follow up as promised. Second, check with your state or local governing agency (such as Attorney General, etc.) and find out if credit repair agencies are regulated in your area. Often credit repair companies are not allowed to charge for their services until work as been performed.

While reliable credit companies need and may require some payment up front to cover expenses, any company who seeks to obtain large amounts from customers probably need to be scrutinized. Ask how much the company will totally charge for their credit repair services. A company who quotes you just a nominal, one time fee may also deserve some further investigation. In order for the process to be completed to its fullest, consumers can expect to pay the company enough money so the company can consistently work with their clients and get the job done right.

Finally, look for companies which do not make outrageous claims such as being able to wipe everything off your credit report and give you perfect credit in a very short time. Also a reputable credit repair company should educate their clients as to credit scores overall, such as what the scores mean, how they are derived, how they are reported and how the information is disseminated to potential companies who consider extending credit to you.

A good credit repair company will obtain your credit report, review the report with you, and give you plan for improving your credit score. Consulting with a reputable company is definitely worth the time, money and peace of mind when consumers are seeking to obtain a mortgage, auto loan or other credit. The money you pay for this service can save your thousands of dollars for higher interest debt.