If you have been denied a credit card or any type of loan due to poor credit score, you may turn to a credit repair company to help bail you out of this situation. However, it is very important that you do not sign any contract until and unless you understand completely what the company you have chosen and cannot do for you.
What Is Credit Repair?
Once you start your search for Best credit repair companies, you must understand what credit repair is, and what credit repair services can do for you. Credit repair providers go through your credit reports from every credit reporting bureau to review the negatives and search for any errors there might be. The service providers then request the errors to be removed and also negotiate with the creditors to resolve all such disputes.
How Much Do Best Credit Repair Companies Charge?
Credit repair services are available in a range of expenses and can charge anywhere from $50 to $129 per month. A simple correction on the credit reports may take around a month or so while credit reports which have numerous different errors that require proper and thorough negotiations along with tedious documentation can take up to a year to rectify.
What Should You Steer Clear Of?
If you do decide to hire a credit repair company to help you out with your credit, the following are some points to keep in mind. If any one of the following situation occurs, do not hire the company.
If the company you select after checking your score on any one of the Credit score websites demands upfront payment, it is a huge red flag right there. Demanding upfront payments is a practice which has been banned by CROA.
Promising a Quick Fix
Not even the very best Credit Repair Companieswill be able to offer you a quick solution to fix your bad credit score. According to the law, the credit bureau has thirty days in order to respond once you challenge something present on your report. This means there is no easy solution to the problem you are facing and should run if a credit repair company offers you one.
Do Not Offer a Contract
Credit repair companies are required to offer a written contract which comprises of the clause for the cancellation rights for clients. Make sure you have been provided with a valid agreement with this clause included in it.
Suggest That You Create a Parallel Identity
Even though this is one strategy which is not very common, some nefarious credit repair companies offer to design a new credit profile for you based on new employer id numbers instead of your SSN (Social Security Number).
Guarantee That They Will Raise Your Score
There is no company which can offer you a guarantee of raising your credit score after the initial one or two meetings. Do not fall for these companies and look for an authentic one.
Even though there are numerous Credit score websites as well as Cash loans websites which may claim they are the best option available to you it always advised that you look for some of the Best Credit Repair Companies. Compare the packages and the opportunities they have to offer, and then select the one which will best suit your needs and requirements. Making the correct choice is extremely important, as this choice can make or break your chances of getting the credit score you require for loans or a credit card.