Do you have poor credit? Do you have a bad history of not paying your bills on time or owing creditors too much money? Do you have inaccurate information sitting on your credit report that is damaging your credit score making it hard for you to rent an apartment, get a credit card or even acquire a personal loan?
If you answered yes to these questions, you definitely need credit restoration. What is credit restoration? Quite simply, credit restoration is the process of repairing or deleting part of your bad credit history in order to improve your overall credit outlook and score. When you engage a credit repair company, they can help you remove erroneous details on your report and this can positively impact your credit score.
But what happens when you do not have errors in your credit report? What should you do when your credit report is correct but you still have poor credit? Well, in such a situation, the credit repair company may dispute some of the negative marks on your credit report and if the reporting agency does not make any dispute within 30 days, those marks can be temporarily removed thus helping you to become a better applicant.
The truth is credit repair services can give you a fresh start as you correct your financial mistakes. However, finding a reputable credit repair company can be a daunting task. This is because credit repair companies were not created equal. Each credit repair company has its own unique ways of repairing your credit score.
While most of the credit repair companies are genuine and deliver what they promise, some of the businesses in this industry are just scam artists. Here are 4 tips that will help you find the best credit repair company while looking out for warning signs that indicate that you are dealing with a sham company.
1. Before You Do Anything, Start by Reading Reviews
If you are struggling with bad credit, a credit repair company may sound like the perfect solution to help you achieve financial freedom once again. Desperately looking for a better credit score can make you vulnerable to scams and you can end up losing more money. Don’t allow scam companies to take advantage of you. Before you engage with a credit report company, start by doing your research.
Write a list of all the credit repair companies in your area that you would love to work with. Read online reviews of each company on your list before you choose any of them. Talk to people who have been helped by credit repair companies in the past and ask for a recommendation.
Word of mouth is a proven way of ensuring that you don’t get scammed by what looks like a good opportunity. The Better Business Bureau also reports customer complaints and it’s a good platform to check what other customers are saying.
2. Read Through Your Contract and Ensure All the Information Is Correct
Once you receive your written contract, read everything and make sure that all the information is correct. Do not agree to sign a contract that you do not understand. Be on the lookout for a contract that does not include the amount of money being charged by the credit repair company, or one that does not have the name of the organization included.
The credit repair company should clearly indicate the services they intend to perform and the time frame required to complete the task. A contract from a reputable credit repair company should contain a statement that informs you that you can cancel the contract within three days.
3. A Reputable Credit Repair Company Will Not Ask You to Pay Upfront Fees
Be wary of credit repair companies that require you to pay fees upfront. Do not pay any upfront fees. Only make a payment after a credit report has been generated and the promised results have been achieved. As stipulated in the federal credit repair organizations act, a credit repair service should not receive any payment until they have achieved what they promised the customer. A credit repair company that asks for money upfront is a clear red flag and should be avoided.
4. If A Credit Company Promises to Remove All Negative Information from Your Credit Report, Run
A credit repair company that promises you that it can get rid of all the negative credit information in your credit report including accurate information is a scam. The truth is it is not possible to dispute all the negative information regardless of its accuracy or timeliness.