Hiring an expert to check your credit standing is super vital, predominantly if you’re considering, applying for a loan or a job.
For employers, it’s quite important if your credit score is in good health because they wouldn’t want to deal with an employee who bears money issues. Of course, your credit score speaks a lot about you as in, how you are able to manage yourself as well as discharging your duties.
For lenders or Banks, your credit score will dictate their decision on approving or disapproving your loan request and on what terms.
If your credit score is weak, you’ll get loans that come with hefty interest rates, and this may take a toll on your pocket in the long run.
Personally, I’ve had my share of predicaments with these credit bureaus. l recall, not long ago, my 6000 dollar loan application was disapproved when the bank checked on Credit Bureau, found a 14 dollar loan balance listed under my name 6 years earlier.
It was very annoying being denied $6000 for a mere $14, the bank stood firm by its decision until l offset the balance l owed to the other lender of which l had lost count of 6 years ago. Had no knowledge that it existed and didn’t bother at all to check my credit report before applying for a new loan. Lazy me.
The offset process was extremely easy, the hardest part was getting the same reflected on Credit Bureau sites.
It took two weeks for the Credit Bureau to confirm the balance payment and wipe off the negative item under my name, the $6000 loan was approved instantly.
After conducting a thorough investigation, l discovered the process was delayed because the lender l owed failed to notify credit bureaus that l had cleared the balance.
Expenses incurred for the sole purpose of rectifying this information on my Credit report were far much more than the loan balance itself. The process involved lots of traveling, l learned my lessons the hard way.
It’s possible to deal with Credit bureaus yourself like as l did, but perhaps involving a credit repair company would have made the process easier.
There are many credit repair companies, so deciding on the right one is a pain on the neck. Some are scams, so you need to approach them with lots of caginess.
Now, let’s delve into the following factors that will assist you in separating the chaff from the wheat.
This is an important factor and you should greatly consider it if you want quality services. Am damn sure you don’t wanna deal with quacks.
Get to interview them one on one, ask questions like:-
- What are your credentials?
- Years of experience?
- How do you work?
- what are your accomplishments.
You ought to be circumspective on the answers they give, if you can consult an experienced person, credit counsel, or a lawyer, the better.
If they’re assuring you of instant results or promise to delete negative items or data on your credit report, that’s a scam. This kind of mandate specifically lies in the hands of the Credit Bureaus.
If they’re taking too long to reply to your concerns, please run, because this simply shows their level of commitment.
On the years of operation, there are two sides of a coin here. You can possess many years of experience but with low quality of work to show for it., on other hand, you can achieve great results within a short period thus having great accomplishments on your portfolio.
So, l feel it’s vital to know about the years of experience but it really shouldn’t be a major determinant when vetting these companies. Instead, check for the accomplishments.
2. Both Online And Offline Reviews.
Checking for reviews whether online or offline is a great way to unveil the authenticity of any given company, credit repair included.
A great place to begin is by googling for particular credit repair companies, relevant sites, also check to see if they are available on social media sites. Analyze the written reviews and testimonials, this will help you make a decision, but don’t just stop there.
Obviously, for the typical customer, more positive reviews equal stellar ratings or performance. But take it with a pinch of salt,
why? because it’s usual to come in contact with fabricated positive reviews inscribed by the company or staff themselves. so, you need to be extremely attentive.
If the method above (online reviews) is kinda bemusing, then you need to consider offline reviews.
Offline is a better option because you’ll get first-hand reviews unlike the reviews on the internet. Try looking for prospective customers, interview them to acquire the real picture, and probably make a decision.
More so, request the prospective company for their active customers as a reference. You will get the real deal of whether to join or not.
You need to make sure that credit company’s mode of operation is within the laws of the land. You wouldn’t want to get yourself on the opposite side of the law.
Also, make sure the company contains a lawyer or attorney licensed by the state to deal with laws on credit repair. This will add a lot of credibility to the company.
Credit repair business is a delicate affair with a fair share of fraudulent activities. So, due to this fact, there are laws enacted which govern the operation of such businesses. Different states have different laws as well as country to country.
As for consumers, The Credit Repair Organizations Act (CROA) was enacted to help curb fraudulent activities as well as protect consumers. More so, it entails all essential information consumers need to know regarding the Credit Repair Business.
The CROA regulates services of Credit repair companies and talks about consumer’s rights before signing up the contract, details of the contract, where to forward your complaints, etc…
Credit repair companies should need a license and bond to operate, there are laid down laws in each state they must follow. In short, their services are indeed regulated, and compulsory abide by the CROA.
4. Provide Contract In Written Form.
A contract is an agreement that binds two parties legally, and most of the time money is involved here. It can either be written or oral/spoken. Though in this case, it’s essential to prefer a well-written contract.
The contract should entail important details that include:-
- Your rights.
- How they work.
- Timelines for delivery.
- Location and Address of the company.
Note that you shouldn’t agree to sign the contract between you and the company without reading it carefully. If it’s possible, get help from an experienced person to explain contract contents in plain English.
If you feel the contract isn’t fairly drafted, and your rights haven’t been covered, you have the right to repudiate or reject it but only within 3 days.
Another important thing to note is that the company should not ask for payments before services are rendered. This is against the CROA laws, you can’t pay for what you haven’t seen. If the company is demanding payments, that’s a red flag and you should run!
Well, the bible says that we’re created equal, but this case isn’t the same for finance.
Let me elucidate,
The world is getting hard by the day, the economy is hectic for almost every folk out there except maybe for the ones who are financially free.
Most of us are struggling but we’re not equal financially.
We’re servicing debts but the levels are different from person to person, some are manageable while some are considered to be out of proportion.
So when hiring these Credit repair companies, consider the above factors. Assess your financial situation first, and see what you can afford to pay them.
If you can’t afford them, it’s better to learn the ropes yourself, take essential steps, find resources of how to repair your credit. It would be better to consult credit counseling organs that provide services free of charge. You’ll be knowledgeable enough on how to tackle credit issues.
Multiple Credit companies charge differently depending on the quality of service. On average, monthly costs could range between $25 to $100 or skyrocket to $150.
In addition, there is a set-up fee of around $100.
For some, this may be quite exorbitant considering you’re already in debt. Though l will say this again and again, consult credit counselors, they’ll help you make an informed decision on whether you need credit repair services or not.
Again on payments, you shouldn’t be in a haste to pay them upfront till services are rendered.
It’s customary for some companies to contain hidden costs. Be circumspective about this, double-check to see if truly there is, so that it doesn’t lead to early disappointments.
If they didn’t let you know about this, it would be better to seek another alternative.
6. Instant Accessibility
Come on guys, this is just common sense! If you’ve been interviewing a prospective repair company and they’re consuming much time to respond, just seek another alternative. You don’t need to waste your valuable time, remember time is money and lots of money is involved here.
Sluggish response is unprofessional, and this illustrates the company is unable to solve your concerns in case of an emergency or disputes.
The company ought to provide a panacea for the customer’s predicaments promptly, and this won’t achieved when they’re not readily accessible.
Watch out for their social media handles, websites, skype, emails, physical addresses and mobile numbers.
In light of numerous atrocious credit repair companies existing out there, the elements above will aid you to isolate the chaff from the wheat. Its easier said than done, in a real sense, finding the best is a daunting task.
Some have been scammed, or even experienced low-quality services and had to move on. But where will you channel complaints as a consumer? Perhaps your rights have been violated, what do you do?
Federal Trade Commission is there to protect you as a consumer, and that’s where you should forward your concerns.
As a commission, its function is to enforce The Credit Repair Organizations Act that entails laws meant to govern repair businesses as well as consumers.
Again you need to educate yourself about the process so that you’re familiar with it, you can opt to repair your report without needing repair companies. If you are in deep debt, and your credit score is pathetic, you need to seek advise from the Credit counsel first.
You’ll get helpful resources for free and make an informed decision because credit repair services ain’t free. Talk of a setup fee and monthly fee. Theirs no guarantee joining them will work out for you, otherwise, you’ll get yourself into further debt.
To acquire excellent financial services or employment, it’s vital to have a good credit score. Without it, you may find life a bit rough, and it will be like a living hell on earth.
All the best in your endeavours.