We’ve all been there. You decide to take the big step of getting a loan or buying a home. Then your lender denies your application because of your less than stellar credit score.
Your credit report shouldn’t stop you from making your dream come true. Here’s where a credit repair service can come in handy. You must’ve seen thousands of ads for companies that promise services that sound too good to be true.
Finding the right company can be like looking for a needle in a haystack. But, only if you don’t know how to find legitimate credit repair companies. Not sure how to find them?
Don’t worry. We have you covered. Read on to learn how to spot the right credit repair service and get approved in no time!
Credit Repair Service: The Basics
So your credit score is stopping you from achieving that dream. Can you do something about it? Yes, you can.
Credit repair companies can help you get your credit score in top shape. Before we go into how to find the right one, we’ll go over the basics. What is a credit repair company?
A credit repair company is a service that goes over your credit reports from each credit report bureau. They review your credit report taking a look at your negative items and errors. An example of errors is an account you have paid in full but appears as still open.
These companies may request the removal of these errors from your report. Also, they can negotiate on your behalf to resolve disputes with your creditors. These companies aren’t the only way to get your credit report fixed.
Do it yourself credit repair is a good way to fix your credit score. You’ll have to contact your creditors and handle the complete process yourself. It will take time but, that’s normal.
Because companies won’t be able to do it in a blink of an eye either. A good starting point to learn more about the process is the Credit Repair Organizations Act (CROA). This law establishes what these companies can and can’t do.
The government passed this law because many companies scammed consumers. They offered promises and services they couldn’t fulfill.
The government has charged these companies with hefty penalties. Yet, that hasn’t stopped others from trying to pull off the same stunt.
How to Find the Right Service?
Finding a legitimate credit repair service can be difficult. But, it isn’t impossible. It all starts with your research.
Your starting point should be requesting a copy of your credit report. Each credit report bureau allows you to request your credit report once a year for free. If you request a copy of it every 4 months, you’ll be monitoring your credit throughout the year.
The credit reporting agencies can charge you up to 12 dollars per additional report. If a company turns you down for credit, employment, or other action, you may request a free copy of your credit report from the agency in your notice. You must place this request within 60 days from the notice.
These free credit reports are great tools for do it yourself credit repair. If you want to hire a company for your credit repair, these reports will help you figure out what services you need.
You should do your research once you know what services you need. This way you can stick to companies that can meet your needs. Here are some of the signs that indicate that you’re dealing with a legitimate credit repair service:
1. The Company Has a Good Track Record.
The credit repair service you hire should’ve been in business for several years. A good rule of thumb is looking for a company that’s been in business for at least 5 years. Also, you should make sure the Federal Trade Commission hasn’t shut them down for violations to the CROA.
2. They Offer You a Free Consultation.
The right credit repair service will offer you a free consultation. They’ll look over your credit report and tell you what they can or can’t fix.
You should use this initial consultation to get an idea of what you can achieve with their service. A legitimate service will be honest about the best way to repair your credit.
3. Their Staff Explains Your Options in Detail.
The staff from a legitimate credit repair service will take their time explaining your options. You must know what recourse you’ve available if your objectives aren’t met.
Can you cancel the contract? How can you cancel the service? These are some of the questions that you can ask their staff.
4. The Company Follows Local Laws.
The service you hire should follow federal and local laws. You should look for a company that’s insured, bonded and licensed.
5. The Credit Repair Service Offers Performance Warranty.
The right credit repair service will offer a performance warranty on their services. The warranty should be not charging you if they can’t remove a number of remarks on your credit report.
6. The Company Has at Least One Attorney on Staff.
A company that does everything following the applicable laws will have at least one attorney on board. Some companies are owned and operated by attorneys. This might put you at ease of who you’re doing business with.
7. The Credit Repair Services Cost Isn’t Too Expensive.
A legitimate credit repair company won’t charge you a crazy amount for their services. They should charge you between 80 to 129 dollars a month.
It will depend on what services you need. A correction may take from 2 months to more than a year depending on its complexity.
Can Legitimate Credit Repair Companies Fix Your Credit Score?
Yes, legitimate credit repair companies can help improve your credit score. You should keep in mind that accurate negative information won’t be removed from your credit report.
Remember that before looking for the company, you must know what services you need. Keep in mind that not all companies charge the same amount but, they shouldn’t overcharge you.
Finding the right credit repair company might take some time and patience. But, if you use a legitimate service, you’ll have an ease of mind that everything is being done right.
Are you looking for a credit repair service? Check our business directory to find the right credit repair company today.