Do Credit Repair Companies Really Work?

Credit repair companies

Unhappy with your credit score?

Unhappy with your credit score?

The credit repair industry has gotten a bad rap. Many companies have claimed to help consumers, only to charge them high prices for things the consumer could do for themselves, for free. Other companies have offered high-quality misleading services as “bringing your credit score up 100 points within two months.” While this claim sounds good, many people found out the hard way that this is an impossibility.

Despite the bad apples, there are some qualified and truly helpful credit repair agencies available. They can work with compromised credit scores and help consumers work hard to bring their rating up. But how do consumers sort through the long list of available credit companies? There are general rules to follow and things to look for when choosing a company. Being aware of these rules can make the decision much easier and the results much more satisfying.

Five factors to watch for

In general there are five factors to watch for when selecting a credit repair company. Consumers should ask these five questions as they research new companies.

  1. Is the web site professional? Consumers should look at the company’s web site and scrutinize their “about,” “history” and “contact” pages. In particular make sure the contact page has an 800-number and not just an e-mail for communication. Make sure there is an FAQ page that answers general questions. The history or about pages should have some testimonials that are varied. Also, consumers need to check for extraordinary claims that seem impossible.
  2. Does the company seem ethical? It is extremely important that credit repair companies have a code of ethics. Consumers will be sharing pertinent and private information with their account representative, and the utmost care should be put into protecting information. Potential clients also can check with ECRA, Ethical Credit Repair Alliance, and the BBB, Better Business Bureau, to ensure the company follows strict codes of conduct. The BBB search will provide any complaints the company has had and whether they were resolved.
  3. Are there a wide variety of services? Again, a credit repair company should be a virtual library of information. Consumers should be empowered by the information included on the web site. A good company will share resources on monitoring credit, maintaining credit, how to remove negative marks from credit and how to move forward with good credit. There will be a transparency built into their business model that benefits the page-viewer, whether or not they decide to sign up with that particular company.
  4. Is the cost reasonable? Credit repair companies are businesses, so compensation is to be expected. Make sure the price is competitive and the list of services are wide. Consumers should check with a few companies and compare prices and offerings to find the best option.
  5. Does the company offer a wide variety of solutions? People looking to fix their credit are not all equal. There are a variety of needs, and any company should offer a customized solution for every client. The solution provided should satisfy the customer within a workable amount of time.

Good credit repair companies are out there, though they may be harder to find. Consumers should do research and apply their good business sense, but in the end a company like this may be able to bring credit scores and budgets under control.

Get professional credit repair help

Speak to a professional today and take proactive steps to repair your credit. For a FREE credit consultation, call 1-877-563-2076.

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