What to Look For In a Good Credit Repair CompanyCredit Repair is a topic that is getting more attention these days, and for good reason. With the current credit situation in this country, have a good credit score is more important than ever. Just a few short years ago, a person with a sub-600 credit score could still get a loan, even if the terms were less than desirable. Today, largely as a consequence of the reckless lending practices of the past, banks and other lenders have compensated to the point that in many cases, borrowers need to have very good credit scores to even be considered for a loan. Some people even report being turned down for a mortgage when there credit score was over 750.
So what is a person supposed to do if their credit score is below average? Especially when their credit score is lower than it should be?
For people in this situation, there are a number of legitimate credit repair organizations who help people legally improve their credit scores though education and the disputation of the negative listings in their credit reports. Finding one of these credit repair companies may be the difference between waiting for years for your credit score to increase on its own, or improving your credit score substantially in a matter of months.
So how do you identify a legitimate credit repair service? Start by excluding any companies that do not operate in strict compliance with the law. Credit repair companies are regulated by the Federal Credit Repair Organizations Act which prohibits certain actions such as charging for services before they have been performed or offering to create a separate or "new" credit report.
Also rule out any companies who imply that they have some secret formula or insider knowledge. The truth is that anything a credit repair company can do for you, you can do yourself if you have the time and interest to learn how to do it. Legitimate credit repair companies merely act on your behalf to do these things for you so you can spend your time on other things.
After you have ruled out the credit repair companies you definitely to not want anything to do with, start looking for companies that you can trust. Look for companies who have been in business for a number of years and have a track record in the industry. Look for professional looking websites (these companies care about their appearance) and call a few companies who look promising to get a better feel for their service. Make sure they are able to answer your questions and address any concerns you have. Don't allow yourself to be pressured into signing up for anything you do not completely understand or anything that sounds dishonest. You credit is too important to be trusted to a credit repair company you are not completely confident in.
As is the case in many industries, when dealing with credit repair services, bigger is usually better. You want a company on your side that has resources, experience, and recognition.
Great article! There are a lot of scams out there, but that doesn't mean there aren't reputable companies as well. Before hiring any credit repair company you should check with the Ethical Credit Repair Alliance at http://www.ecraonline.org - credit-repair-companies
Can I throw my hat into the ring? I own www.nationalcreditfixers.com. We are honest, dependable, and work hard for our clients. Thank you for your consideration. - visitor
I went with a company called Lexington Law. They helped me raise my score 180 points in 5 months! I highly recommend them if you are looking for a company to trust. - visitor
I haven't enrolled yet however, after looking at the top ten, I opted for Sky Blue, costs are affordable. In a few months I'll know if they helped me or not.
It is important to do your research, but always remember the saying "You get what you pay for". The purpose of credit repair is to get your scores up typically to get qualified for financing. There is a big difference in just getting qualified and being highly qualified. That difference reflects your interest rate. Credit Repair is an important investment and choosing the right company can save you tens of thousands of dollars. Choose a company who has proven to have better results than any other company in the country! CRE Credit Services produces unmatched results and has the best guarantee in the industry! - visitor
Apex Credit Services may cost a little more but, their program is two-fold in that they can and do add seasoned tradelines as well as perform true credit restoration. They don't string you out for a year or two to get monthly fees, their program takes all of 90 days. Who wants to pay a monthly fee for a year or better only to see marginal improvement? I'd rather, and I did, pay into a trust account and let Apex Credit Services do their work. Worked for me. - visitor