Credit card debt affects your financial health and can impact your stress level too. If not checked, your credit card debt can build up quickly and make it challenging to get rid of. A bad credit history can affect your insurance premiums and attract high interest rates on bank loans. Credit repair companies offer to raise your credit score within a short period, for a fee. While these companies work, you must be aware of scammers. Here are some tips for choosing the best credit repair company while avoiding scammers.
Understand Your Rights
Begin by looking for relevant information on credit repair. Visit the Federal Trade Commission website to get an insight on credit repair and debt management. The law also requires your potential credit repair company to update you on your rights before signing any contract. The company should also present you with a Notice of Cancellation and a copy of Consumer Credit File Rights. These documents will protect you from unfair and deceptive practices. Ensure you read these documents before you sign any agreement.
Services
The range of services offered varies from one company to another. However, ensure that you understand what you are paying for to prevent any disappointments. Some companies prefer to dispute items with credit bureaus instead of engaging your creditors. Others opt to dispute negative items in your credit report, while others will offer credit counseling services. Find out what each credit repair company has to offer and choose the one that covers the services you need to regain control of your finances.
Experience
A company that has operated for a minimum of two years has the right expertise in the debt management field. Experience is a crucial factor because it tells you whether the firm can provide reliable and legitimate services. If the company is still operational after two or three years, it shows that it meets customer satisfaction. However, this does not mean that all new credit repair companies are not up to the task. Some of them have highly experienced staff who can deliver. However, the best thing to do is to consider this top 7 company list.
Cost
The best credit repair company should charge you a reasonable fee for their services. Most firms charge a start-up fee, which covers the time spent analyzing your report to determine whether they can help you. If they can help, you will pay a monthly fee while they work on cleaning up your credit report. Always ask for an estimate of the cost to help you choose a company that you can afford. Most companies charge a monthly fee of between $79 and $119. Do not fall for low-cost services that charge per item.
Customer Services
You want a company that you are comfortable to work with. Look at how responsive your potential firm is and how effectively they answer your questions. Look for reviews and find out what previous clients say about the company. Give them a call and ask them to send their company information by email. By doing this, you will find out the companies that want to make a quick sale over the phone and the ones who wish to work with you genuinely.
The credit repair process may take several months to complete. As such, take your time to choose the best company.
