Things to Consider When Hiring a Credit Repair Company
As conditions surrounding the pandemic continue to improve, many people are starting to plan for the future, but lingering credit rating issues could stand in the way. News 5 gets expert advice on the credit repair process and things to consider before hiring a company to help you.
With the economic challenges of the past year, many people are looking for opportunities to improve their credit score. Financial experts say taking the right steps in this process will help and could save you money.
The first tip in preparing for success is to start by working on your own. You can request a free credit report each year from Transunion, Equifax, and Experian. If you see an error, consumers have the option to dispute anything on this report.
If you do decide to hire a company to help you manage the situation, take a closer look at what their staff looks like and if a lawyer is on the team. Debt.com experts say it adds credibility to the process.
“The federal government has laws in place that do not allow a company to charge a fee up front. However, some companies are trying to get around this. So be careful of this,” said Howard Dvorkin, financial expert at Debt.com.
There will likely be a fee for keeping their services while they are doing the job, but what you are trying to avoid is paying them a lot of money up front and then they are gone.
âIf they charge maybe a hundred dollars a month or less, it’s still okay to pay them. This is where they charge $ 500 or $ 1,000 up front and promise they’ll clean your. credit, this is where consumers get their money in trouble because they will pay the money, and there is very little incentive for the company to do the job, âDvorkin said.
Remember that when it comes to your credit, you are going to disclose all of your most sensitive personal data to any company you choose to work with. An excellent reputation is therefore imperative.
Some credit repair companies offer a money back guarantee. If it’s a well-respected company with great reviews, the experts say this is the deal you want.
âBecause they are confident that they are going to do their job,â Dvorkin said.
But if a company guarantees results, it could be a red flag. Disputing errors on your credit report is a legal process, so they can only do what the law allows them to do.
“No company can guarantee the removal of an item. They can only do what the law allows them to do. The real power lies with the credit bureaus. They are the ones who have the ability to remove an item. or frankly not to delete an article, “said Dvorkin.
So, according to experts, these are the things to do if you are looking to hire a company to help you with your credit …
– Evaluate the company
– Check staff
– Avoid cash upfront
– Look for money back guarantees
– Do not fall into the trap of guaranteed results
Here are some additional tools and tips offered by the experts at Debt.com: