Finding a Credit Repair Organization You Can Trust
- By Dona Barlett
- Published January 3rd, 2010
- Credit
- Unrated
Dona Barlett
Credit Repair BEST provides information about credit repair as well as a moderated question and answer forum where visitors can learn more about the credit system, what they can do to make the most of their credit score, and how credit repair companies may be able to help.
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As is the case with mechanics, chefs, general contractors, and every other profession, there are quality credit repair companies and some to steer clear of. Below are a few tips for identifying a credit repair company you can trust.
1. Look for how long the company has been operating as a credit repair organization. Credit correction is an industry on the rise with many new entrants coming and going all the time. Try to go with a company with a solid track record that you have confidence will be in business for the long run. The last thing you want is for a company to go away before they are done helping you.
2. Look for full disclosure. There is nothing a credit repair company can do for you that you cannot do for yourself. In fact, credit repair companies are required by law to make you aware of this fact via a written disclosure statement when you sign up for their services.
On top of this, note that credit repair services are not guaranteed to achieve your desired results because ultimately, whether or not something gets deleted from your credit reports is up to the credit bureaus and your creditors. Watch out for companies that guarantee to improve your credit score or get you approved for a loan.
3. Make
sure the billing policy is legally compliant. By law, credit repair companies are not permitted to accept any money before performing the agreed upon services. This is to protect people from scammers who would promise to be able to repair their credit report for an upfront fee (often times charging many hundreds or thousands of dollars) and then take off once the payment was received. This is why most credit repair providers charge a setup fee for creating your account (which should not be charged immediately and will in many cases not be charged for a few days), and a monthly fee collected after the previous month's services have been performed.
4. Know the signs of a credit repair scam. Because so many Americans are desperate to improve their credit but understand little about how the credit reporting system works, scammers have set up phony credit repair clinics claiming to help people but make the situation worse. The Credit Repair Organizations Act (CROA) was established to help protect consumers from becoming a victim of a scam by defining rules credit repair companies must adhere to. Knowing these rules will help you avoid being taken advantage of.
1. Look for how long the company has been operating as a credit repair organization. Credit correction is an industry on the rise with many new entrants coming and going all the time. Try to go with a company with a solid track record that you have confidence will be in business for the long run. The last thing you want is for a company to go away before they are done helping you.
2. Look for full disclosure. There is nothing a credit repair company can do for you that you cannot do for yourself. In fact, credit repair companies are required by law to make you aware of this fact via a written disclosure statement when you sign up for their services.
On top of this, note that credit repair services are not guaranteed to achieve your desired results because ultimately, whether or not something gets deleted from your credit reports is up to the credit bureaus and your creditors. Watch out for companies that guarantee to improve your credit score or get you approved for a loan.
3. Make
4. Know the signs of a credit repair scam. Because so many Americans are desperate to improve their credit but understand little about how the credit reporting system works, scammers have set up phony credit repair clinics claiming to help people but make the situation worse. The Credit Repair Organizations Act (CROA) was established to help protect consumers from becoming a victim of a scam by defining rules credit repair companies must adhere to. Knowing these rules will help you avoid being taken advantage of.