Chances are, if it has been some time since you first saw your credit report, there may be errors or mistakes that can be corrected. The good news is, a Credit Repair Company can take care of fixing those mistakes in order to get rid of those black marks. But beware of scammers, so read the five tips to help you pick a credit repair company.
Don’t pay anything up-front
Get to Know a Credit Repair Company that Requires Payment before Meeting with you. Create Parallel Group In cases where the declination letter precedes a call from the company, the consumer is advised to notify one of the reputable companies or legal services first so they can talk with you and your credit report about your current situation before asking for ANY type payment for their services. Any upfront fee should be a warning that the company is just going to steal your money and run. And certainly not too high a charge of what charges you may get. If a Credit Repair Company tells you your case is going to cost thousands of dollars, head in the other direction.
Watch out for “re-inventors”
Although some unscrupulous companies will you that you can eliminate your credit “problems” by rebuilding a new identity with a fresh social security number. But that’s not true! Really, all they are almost certainly going to do is apply for an Employer Identification Number (EIN) — a business’ version of the Social Security number — and then you should use it as your own. This method, also called “file segregation,” is illegal and a scam. Stay clear of any Credit Repair Company that scales this tactic.
Better yet, Find One Who Assists You In Helping Yourself
A FREE Credit Repair Company will actually let you know what you can tackle on your own, such as drafting letters to creditors and reaching out to credit reporting bureaus about inaccuracies. Steer clear of any Credit Repair Company that coerces you into doing something illegal or unethical like disputing a valid charge or fee on your credit report.
Always check with the Better Business Bureau before partnering with any Credit Repair Company. They will know the names of any complaints that have been filed and these can prevent you from being scammed by a company.
