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What to Consider When Choosing a Credit Repair Company

Tuesday, November 7, 2017 15:37
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What To Consider When Choosing A Credit Repair Company

In most cases, you can handle simple errors in your credit. However, if you’re thinking about hiring a credit repair company, then it would mean you’re already in dire straits. Considering their services would be a significant decision for you or anyone in your situation. Chances are you’re already at a loss about what to do.

The experience and resources of a reputable credit repair company can help you manage your credit problems with efficiency. is a great resource for reviews and more information on such companies. Moreover, it saves you from having greater anxiety in dealing with your creditors and in worst case scenarios, the collection agencies.

However, it’s best for you not to rush into choosing the right company to work with during this challenging time. You want to avoid any chance that a scammer will play on your desperation and hoodwink you. To help you, we highlight what you need to consider before picking out the credit repair company you’ll be working with. Moreover, we provide you with the questions to help you assess the trustworthiness of a company. Also, offer you tips on how to choose the best company to meet your needs.

What to look for in a credit repair company

As we said, hiring the services of a credit repair company is a significant decision. Hence, the list of factors you should consider beforehand is long. Remember you want to make sure you’re able to hire the right company for the job. So, even if your best friend or father-in-law refers you to someone, you still want to make sure they can deliver.

  • You want a credit repair company that’s reputable

In spite of the bad reputation of credit repair companies, you can still find a few whom you can trust. Moreover, those who are genuinely interested in helping you rebuilt your credit. Here’s what a reputable company will do for you.

    • A reputable company won’t give you false claims about a blanket repair to fix all of your credit problems.
    • A reputable company will make an individual assessment of your situation
    • A reputable company will provide you with a particular strategy suited for your specific needs

Take these tips into consideration when looking for a reputable credit repair company.

    • Check out Google and Yelp for recommendations and ratings from people who’ve used their services before.
    • You want a company who has a minimum of ten reviews in its favor.
    • Be sure to check out the section on public complaints submitted to the Consumer Financial Protection Bureau’s website. You want to make sure the company you’re eyeing isn’t on the list.
  • You want a credit repair company with experience

You want a credit repair company who won’t use your case as a training ground. No doubt, it will only make you more anxious than you already are. What does an experienced group have to offer you?

    • An experienced company is knowledgeable about the ins and out of credit law
    • A qualified company has worked with numerous creditors, so chances are they know a thing or two about negotiating with them. However, you should also be aware that not all lenders are willing to work with them.

When considering the experience of a credit repair company, look at its effectiveness and not only at the number of years it has been around.

  • You want a credit repair company with references and firm affiliations

Always ask a credit repair company for references and inquire about their firm affiliations. Here’s why you should.

    • The references should be of people who they’ve worked with before. You want to get first-hand information on how the company operates. It can give you peace of mind and give you greater confidence in choosing a credit repair company.
    • Be wary of a company who says they can’t give you references for confidentiality reasons, then continue your search.
    • A credit repair company with firm affiliation can take further action on your behalf through debt negotiations.

Key questions you want a credit repair company to answer before hiring them

You should take every opportunity to learn more about a credit repair company before you hire them. Their answers to the following questions will help you in making the right choice later on.

  • Is your company licensed, bonded, and insured?

It’s for your protection to make sure the state laws recognize the credit repair company you’re working with. A reputable company should be ready to present their credentials to you as proof of their legitimacy.

  • What is your business’s credit repair process?

Knowing how a company plans on helping you repair your credit will give you peace of mind. Moreover, it assures you that they have a strategy in place. As a client, you want to get the following results in working with a credit repair company.

    • Remove wrong information on your credit report
    • Negotiate to lessen the impact if fees, negative marks, and interest on you
    • Discuss with creditors about reducing the amount you owe by as much as 50%
    • Put into writing the negotiated fees and other terms discussed with your creditors
  • How soon before I see any improvement in my credit?

This can be considered a trick question. Even so, the answer of a credit repair company will show their level of transparency. Remember, a company that promises you any improvement is a red-flag. In truth, there’s no guarantee of an increase. Hence, the reason why a reputable company offers a money-back guarantee.

  • How does the credit repair process start?

A reputable company will inform you of what they require from you to start the credit repair process. Because they are aware of the gravity of the situation, they won’t waste your time by dilly-dallying about the details you need to provide. Examples of information you need to provide include:

    • Copies of your credit reports from the different credit bureaus
    • Your existing and likely plans for future credit


So, how do I choose the best credit repair company? Your choice would depend on your specific situation. You can hire a company that charges a cheap monthly rate. If you’re looking for extra services such as identity theft protection and monthly monitoring of your credit, then you’ll likely have to pay more. Either way, you want to make sure you choose a credit repair company who provides results. Hence, you should take into consideration the different factors to look for in selecting a group. Moreover, be able to ask the right questions to evaluate a business and its services. By carefully considering your options you can prevent the chances of being scammed, and you’ll be more positive about financial future.

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