Things You Need to Consider Before Using a Credit Repair Company

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Things You Need to Consider Before Using a Credit Repair Company

Things You Need to Consider Before Using a Credit Repair Company


Updated: December 26, 2012

Add to Favorites:
When you get so desperate to get out of your debt, you tend to look for the fastest and easiest way to do it. You resort to consultations, recommendations and end up in a credit repair company. If you choose a good company, you will have the change to clear your credit record. On the other hand, there are also companies which charge huge bills for no results at all. When choosing the right credit repair company, you need to consider these things: First, references. You will hear testimonies from people who have been helped by the company. Some of them may have required the assistance of the company to correct entries on their credit history. Others have really bad records and needed their lives organized. If the company is really good, you will find real people with real stories to tell. You can ask the company to provide you with references and make it a point to talk to these people to verify the company`s claims. Or you can ask friends, family members, or colleagues if they know companies offering credit restorations which have a good record. Personal referral by people you trust is very important. Second, you should have a contract with the credit repair company. This is basic. The credit repair company is a service provider, therefore in the contract; the obligation should be easily understandable by both parties, and the service provider should know their limitations. Through this contract, you will also know your right, and you can easily determine instances when you can request for a refund. Third, know what the monthly service charge is. Some credit repair companies charge too high overhead costs. All charges should be given in detail and discussed with the applicant before any contract is signed. This way, you know exactly what each payment for, hence, you avoid getting overcharged (which can actually add to your financial difficulties). Any additional cost should be consulted with the client as soon as possible. Fourth, you should know whether the credit company is accredited to operate in your state. It is also important that they have an office where you can visit. This way, you know where to find them in case there are further consultations, questions and other actions you need addressed. Although emails and other form of electronic communications are easily available, personal interaction and communication will make things easier for you and the credit repair company. Fifth, methods used by the credit repair company should be disclosed to you. You as a client should be aware of the methods they use to deal with your creditors because these have an effect on your credit score. If the company uses illegal means, then you can be penalized further. It is not bad to rely on credit repair companies to help address your financial issues. But you have to choose wisely. Don`t just believe on hearsays and mere advertisements. In order for credit repair companies to become effective, they must know what they are doing, and they have to be accredited to perform their business. Otherwise, you will be held accountable for their actions and could lead to further problems on your part.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading