How to Pick The Best Credit Repair Company
Having a bad credit score can have life-altering effects. Suddenly, all doors are shut when it comes to applying for a credit card, getting a loan or even renting a small apartment. Since there are so many individuals that struggle with a bad credit score, credit repair companies have emerged. Their sole business focus is to help improve credit score, and some of them are quite good at it. Borrowers who have a bad credit score can pick the best credit repair companies by reading reviews of credit repair companies. Picking the right company to work is not that challenging, and there are some simple questions to ask.
How Long Have They Been in Business?
Newly established companies have a habit of recruiting staff from other repair companies. This means that they can have experienced staff from day one. On the other hand, companies that have been working in the industry for years have helped thousands of customers to improve their credit score. In simple words, there should be enough feedback and reviews for their services available.
The better business bureau does list all these credit repair companies meaning that it should not be that difficult to find out how good they are at what they do. The fact that there are so many companies in the industry and new ones pop up so frequently does have an upside. Their services become increasingly cheaper due to high competition even if there are plenty of people that require their assistance.
What Fees Do They Have for Their Services?
Nobody works for free and that is understandable, but it is important not to overpay for credit repair. One fee to look out for is how much they charge to remove a derogatory item. Each item needs to be removed from all 3 major credit bureaus. This can add up to thousands of dollars in some cases if the fees are above the market average.
A healthy practice would be to check fees and compare them with what other reputable companies charge for the same service. Some even throw in some freebies or offer certain guarantees which will prove to be quite valuable.
Good Signs of a Reliable Credit Repair Company
Besides the above-mentioned aspects, there are some minor details that some might miss. Companies that are serious about their business will offer additional services and will know how to lock in a potential customer.
One good sign is if they have an attorney on their staff. The benefit of this is that everything will be done legally. It will also help deal with situations in which clients might be victims of abusive practices by some creditors.
A free consultation is always a good thing. While it may not sound like much, reputable credit repair companies will have no issue in reviewing a report and provide an initial assessment. A fruitful discussion should include possible actions to improve the borrower’s credit score. It is important to note that these companies cannot deal with an erase of public bankruptcy.
Check Their Performace Warranty
Finally, if the credit repair company is serious about their business, it should be able to offer a performance warranty. If a company still charges their fee for a disputed item that they could not remove, they should be avoided. These aspects should be clearly clarified in the contract; thus one more reason to spend time and read it as well as to pay attention to the fine print.
