Credit repair services have been around forever, and it’s easy to understand why: it seems that most people would rather have a bad credit score than pay off their bills and fix their credit history themselves! But before you get any service that promises to repair your bad credit, there are some things you should know about the industry. Here are the biggest things you need to know before getting any credit repair service.
1: Check Your Credit Report First
You can do this by checking the status of your credit score with a company such as Credit Karma. If your credit score, you will have to work on fixing it before contacting a company for help.
Some things are inaccurately listed on your report, then feel to contact a credit repair services company! The first step in this process will be an investigation into the errors and unclear information listed for them to start working on how best to clear up the data. This may take anywhere from one month to three months depending on how much work needs to do but it’s worth it in the end!
2: Research the Company
There are many credit repair services available to consumers looking for help, but not all of them are reputable. There are a few things you should keep in mind before choosing a credit repair service. First, make sure that the company is certified by the Credit Repair. Second, check out the Better Business Bureau website and read reviews. Third, ask for references from other people who have used the company’s services. Fourth, look at how much the company charges for its services–the fee should be reasonable and not too expensive. Fifth, see if any hidden or extra fees will be charged on top of what you originally quoted.
3: Avoid Companies That Guarantee Results
Credit repair services are a tricky business, and there are many companies out there that claim they can fix your credit in days. These companies may sound, but the reality is that most of these services don’t do anything for your credit unless you’re willing to pay a monthly fee. Many of them charge outrageous fees and make promises they can’t keep. Avoid these companies at all costs and save yourself from wasting your money on something that doesn’t work.
4: Be Wary of Companies That ask for Upfront Payment
Credit repair services are a dime a dozen and it can be tough to weed out the good ones from the scams. Here are some things that you should watch out for if you want to get started on this process:
a) Be wary of companies that ask for upfront payments. Many reputable credit repair services don’t require an upfront payment.
b) Don’t let your guard down after just one month of work. It can take up to many years for an average person’s credit score to fully recover from mistakes made in the past, so be patient when it comes to credit repair.
c) Beware of credit monitoring offers from these companies; they often come with a monthly fee attached, which is not worth it at all! A better alternative is to sign up for credit cards from reliable banks, Capital One or Discover, which offer credit reports. These cards also have rewards programs, which will give you cash back or points towards flights, hotels, or other goodies!
5: Educate Yourself on Credit Repair
You may not realize it, but your credit score is an important factor when applying for a loan or mortgage. Credit repair services can help get your score back on track, but they can be expensive and difficult to find. Before taking the plunge and signing up with one of these companies, do your research and make sure that they’re reputable. You’ll want to start by finding out what kinds of services they offer, their rates, how long it will take for them to work on your credit report, and how long the results will last (i.e., if the company claims that their work will remain on your credit report for five years but only last a year), and if there are any guarantees associated with the company’s work.
6: Understand the Process
The process of credit repair services varies from company to company, but there are some common steps. Typically, the first step is a consultation with a professional who will discuss your situation and what the credit repair process might involve. If they agree that they can help you, they will work on fixing the problem and communicating with your creditors. They may also negotiate with creditors for lower payments or interest rates. For example, if your debt is too high relative to your income and the creditor offers a lower payment or interest rate for low-income people, it may make sense for them to take that offer so that you can stay afloat financially. Once all of the problems have been addressed (this could take months), then monthly payments will be made automatically until everything has been paid off in full.
