Credit repair is quite a sensitive issue. You can’t trust everyone with your credit. With an increasing number of credit repair companies, it has become more difficult to find a trustworthy service.
Scam credit repair services often make empty promises to their clients. They might also misrepresent your credit or charge a higher fee than what is appropriate. This works against a client who is already facing credit issues.
Although the credit repair industry is subjected to a few scams, there are others who are dedicated to help you. Want to find a company you can trust? Here are a few clues:
Charges after credit repair
A company or an individual should not ask you to pay for credit repair in advance. Treat such a request as a red flag. According to the Credit Repair Organizations Act, it is illegal for a credit repair company to accept advance payments.
People who seek these services are often desperate and unknowingly become their target. The amount they ask may range from hundreds to thousands of dollars. Once paid, these companies often disappear.
Advises you about your rights
You have a right to order your credit reports and to dispute any questionable details. You can do this with the help of a credit repair service. The Credit Repair Organizations Act also requires a company to provide every customer with a "Consumer Credit File Rights Under State and Federal Law" statement.
The company needs to provide you with this written statement before you sign any contract. While it seems like a trivial matter, this is how you can identify a company that puts you first.
Doesn’t suggest illegal credit repair methods
Scam credit repair companies will offer to create a new credit file for you. This is actually file segregation which is illegal. By suggesting an illegal method for credit repair, the company is putting you at risk of legal action.
They use a new social security or employer identification number for you to create a new credit report. This may look like an easy solution, but it isn’t.
A new credit report means an empty credit history. It is suspicious, especially if you have been in the workforce for a while.
Doesn’t delete accurate information
Only information that is inaccurate can be disputed. A credit company should never tell you that they can delete an accurate record.
Even if they promise to do so, there is no guarantee that a particular record will be deleted.
This is because it simply isn’t in their hands. Credit bureaus and the creditor are the only ones who can decide what remains on your score report. All a company can guarantee is to do their best. So if a company promises to delete an accurate record, don’t trust their services.
The best credit repair company will follow the law and put your interests first. You can find a number of fast credit repair services but make sure to go through this checklist before selecting one. Or you could go the DIY way with us!