What Watch Out for in Credit Repair Companies

Credit repair companiesBecause we are Dave Ramsey trained coaches and counselors we know what happens when one does no interact with debt – your credit score drops. However, we have coached many people who needed a credit score to get a new job, get a mortgage or rent an apartment. How do you balance the debt snowball and still fix your credit? There could come a time in your life that you need a good credit report and score.

So if you have a bad credit report, then you may want to consider credit repair; and you may look for companies that can help you with such. You may know that Dave Ramsey suggest you do your credit repair yourself. We agree – if you are willing and able you can. I normally hire a painter to paint my house, but I am capable of doing it myself. I have fixed many toilets and faucets, but there are times I have to call in a plumber. You have to decide what you are going to attempt yourself and what you need professional help to accomplish. If you decide to outsource your credit repair we want you to be informed.

When you decide to hire a Credit Repair company, you should choose one that has a good reputation. There was a time when these companies were not regulated and anyone with a computer could open one up. States have cracked down on these “fly-by-night” Credit Repair Experts. Many states now require them to be registered with the state and post a bond. There are strict regulations governing credit repair professionals. So how would you know if a particular company is reliable? Here are some things you may want to watch out for.

Slowly but Surely

There may be times when you would encounter a company which can give you all-too-good promises, saying that they can fix your credit in just a few days. They may sound good; but you should know that repairing credit should not be a hasty work. It should be done slowly and deliberately. Legitimate companies take months to clean your record, depending on how many incorrect or out of date entries are in your credit file. The reporting agencies will dismiss letters from Credit Repair companies that are received in a “shotgun” manner. That means they try to dispute everything at once and see what hits the target. It should be a slow, methodical and thoughtful method. A professional will need enough time to make the changes in your credit report permanent. They have to contact the credit reporting agencies and many times the original creditor. It can be difficult to locate the original creditor. All of this takes time to complete all the necessary paperwork and give it time to be processes. Attacking too many errors at once can have a negative reaction from the credit reporting agencies. Some legitimate national chain creditrepair companies also fall into this trap. They try to fix everything at once. They may give you a temporary solution, but it is just that – temporary.

A New You?

Scam artists and fly-by-night companies may want you to apply for a new social security number so that your previous credit history will be wiped out. They may get you an Employee Identification Number which is used by businesses to give information regarding their finances. This number looks a lot like a social security number. However, you should know that it is illegal to use an EIN as you personal social security number; and you should avoid companies who claim that they can help you to erase your credit history for you.

Too Much Money Up Front

credit repair professionalsYou should also stay away from companies who are asking too pay them up front. Many states forbid this practice and mandate payment after completion or in manageable monthly payments for services completed. If a company or individual is asking for a lot of money from you even before they start their job; that is a red flag.

You should not pay a company when until they have reviewed your condition and status. A legitimate company need your to pull your credit reports before they can start. There may be a small processing fee for this, but they should not charge more than $100 for processing or document services. After they have assessed your credit history, you should be given an estimate of the costs for their services and an idea how long the process will take. This is important, because you will likely be paying by the month. You should at least get something from them before you part with your money.

At this present time, you should know how to be vigilant. A lot of people may take advantage of you and your situation. You should have knowledge of what to avoid when looking for people who can help you with your credit problems or low FICO score. If you are not careful, you may be cheated out of your hard earned money.

You should know who to approach when you are in need of help. Credit repair can be a smooth process if you are connected to the right people and a reliable company. As in most areas, you should go with the ones whom you can trust.

If you need to know more about how to repair your credit and if you can rely on us, please visit OperationCare.com today.