Things You Need to Consider Before Using a Credit Repair Company


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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

The content is accurate at the time of publication and is subject to change.
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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.
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