Choosing a Credit Repair Company
Finding the right credit repair company can be a big decision for anyone with bad credit. Choosing the right one could end up being one of the best things you can do for your financial future. Repairing your credit scores can help you qualify for lower interest rates and increase your financial options.
A typical credit repair service usually charges a few hundred dollars and takes about 6 months to repair your credit. It usually depends on how bad your credit is. Some clients can be finished within a month or two and will pay considerably less. Others can take over a year and cost more than a thousand dollars. Most credit repair companies have a one-time set up fee and then low monthly payments. It is in violation of the Credit Repair Organizations Act to charge the full amount before they provide any services.
Unfortunately, the credit repair industry has received a bad reputation because of the publicity given to credit repair scams. While fraudulent credit repair firms tend to be shut down quickly, it is still in your best interest to learn how to identify the differences between a legitimate credit repair service and a credit repair scam.
Some warning signs to look out for:
- The company wants you to pay for credit repair services before they provide any services.
- They don’t tell you your legal rights and what you can do for yourself for free.
- They suggest that you try to invent a “new” credit identity and a new credit report by applying for an Employer Identification Number to use instead of your Social Security number. This is highly illegal. If you follow illegal advice and commit fraud, you may be subject to prosecution.
You should also research a credit repair company at the BBB (Better Business Bureau). The BBB keeps notes on complaints made against companies. If the BBB report for a credit repair company lists multiple unresolved complaints or an overall low rating, you should be wary of the company.
Check out the Top Credit Repair Companies online.
