Having poor credit can be challenging for an individual who seeks financial help. It may be difficult accessing a personal loan, credit card, or mortgage for an apartment. Notwithstanding, credit repair companies help improve your credit in order for you to become an eligible applicant, at an affordable fee. The roles these companies play include reviewing your credit reports and resolving negative items with the credit report bureaus.
Although, most of these tasks can be done personally, you just have to weigh the cost of personally working your credit up against having someone else do it for you. However, the success rate of resolving them on your own is slim when compared to that of a professional service. Other issues that can be encountered include the lengthy time frame taken to sort your credit and the credit laws you need to learn.
If you consider going for a professional credit repair company, then you need to understand in detail how operations are being performed.
What Is A Credit Repair Company?
A credit repair company is an organization that renders financial services geared towards enhancing your credit at a fee. The company does all the work with the credit report bureaus to ensure that your credit is in order.
It is essential to note that credit repair firms differ from credit counselling agencies. The latter provides credit counselling and other free resources to individuals. In recent times, there has been a rise in credit repair companies. In the midst of these activities, a lot of them have proven to be scams.
Hence, you need to research in-depth about a credit repair company before you contact them.
How Can You Authenticate A Credit Repair Company?
It is not difficult to verify a credit repair company. Here are ways you can achieve that:
• Check out the reviews of the company on the Better Business Bureau website.
• Find out from the Consumer Financial Protection Bureau’s complaint database if there are issues with the company.
• You can research the company on other relevant review sites.
In as much as these credit companies are willing to boost your credit, there are red flags you should avoid, especially if their offers sound too good to be true. The following provides a likelihood of scam:
• If they offer to legally create a new credit identity.
• In an event where you are required to make payments first before services can be rendered.
• Whereby they promise to eliminate accurate negative items on your reports.
• Assure you improved credit.
These points are signs of red alerts you should steer clear from.
How Do Credit Repair Companies Operate?
To begin with, a copy of your credit report is being requested from the three major credit report bureaus, namely, TransUnion, Equifax, and Experian. These companies lookout for negative items such as bankruptcies, charge-offs, and tax liens. Once detected, they create a plan to resolve these errors with creditors.
Actions that will be taken include:
• Forwarding requests to authenticate information.
• Sending credit dispute letters.
• Forwarding cease-and-desist letters to debt collectors to initiate negotiations.
The credit repair company may suggest that you apply for new accounts so that your credit reports will contain positive information. However, this may not be ideal if you have issues managing credit.
Fix Your Credit Now
With the help of a reputable company, you can improve your credit and get access to various financial opportunities. If you would like to request the service of a professional credit card company, please visit this link: companies.
