Credit Repair Companies
If you look up credit repair on the internet, you will find reviews of various credit repair companies. What you will also find is the argument that there is nothing a credit repair service can offer you which you cannot do on your own.
The Credit Repair Organizations Act clearly states that any credit repair company has to compulsorily provide in writing that every single consumer has the right to order a copy of his/her credit report from a credit bureau and dispute any debatable item himself/herself.
This argument may sound enticing to someone who wants to save on the fees for hiring a credit repair service. Anyone who likes to do things on their own may opt to try and repair their credit on their own.
While that is perfectly fine and commendable, many consumers do not actually opt to fix their credit on their own. Many people suffering from bad credit actually engages with a reputed credit repair company. They do so because not everyone has the time to learn about the intricacies of credit reports, credit items, etc. and then use that knowledge to go through a process.
Remember that repairing of credit takes months and it is not as simple as just sending a letter to the credit bureau. One has to invest a lot of personal time and effort, and be committed to the entire process in order to successfully remove negative items from a credit report.
This argument is similar to the argument that you can repair your laptop or mobile phone when something goes wrong. There are plenty of blogs, forums, and YouTube videos which talk about electronics in our everyday appliances.
One can easily spend years learning the subject and then apply it to repair their broken devices. With the information out there, you can pretty much construct any electronic device that you want. But how many people actually go ahead and spend time learning the subject? Most will simply walk in to a service store or a repair shop and happily pay for the repairing and technical support.
It may simply not be worth for them to spend all the time and effort doing the process themselves. This same logic applies to servicing your car. Sure you can change your oil, rotate your tires, and replace spark plugs. But do you actually do so? Or would you rather drive into a garage and have someone take care of it for a reasonable fee?
Credit repair service companies play the same role that an Apple service center does or a car garage mechanic does. Credit repair services offer you experience, expertise, and the right set of tool to fix your credit in a hassle-free way. Of course, they have to conduct their business within certain guidelines. But as long as you find the right company, repairing your credit can suddenly be a lot less daunting than it would seem if you were going solo.
There are many credit repair companies that help you remove negative items on your credit report arising from events such as late payments, tax liens, incorrect data, identity theft, foreclosures, etc.
A credit repair company can help pull up your credit score and make you eligible for loans which were difficult to avail. While people may be initially skeptical about the success rate of credit repair companies, a deeper review of the track record of reputed companies will suggest that these services do work.
Certain companies will give you an average number of negative items which they have successfully removed from their past clients’ records. Certain companies will also offer you a money-back guarantee if they cannot get any negative item removed or if you are not satisfied with their services. Such offers signal that these credit repair companies are quite confident about the success rate of their services.
Basic functioning procedure of credit repair companies
There are many credit repair companies in the industry these days. The good ones will normally inform you upfront what they can and cannot do for you. They are clear about their processes and offerings.
Normally, they will first obtain a copy of your credit report from the three biggest credit bureaus: TransUnion, Equifax, and Experian. Once they have the report in hand, they will analyze it and look for all the negative items that can be disputed. Once these items have been identified, they will write a letter disputing the negative items on your behalf.
They will be maintaining communication with the credit bureaus and creditors throughout to ensure that your credit report is corrected.
Things to look for in a credit repair company
Your personal financial record is very important to your well being. If that record is not great, then it needs to be fixed. You can either fix your bad credit yourself or work with a credit repair company to help you fix it.
Choosing the right partner is important in case you choose the second option because you will be working closely with the credit repair company and they will be using your personal information.
You want to make sure that you get the value for the money that you will spend on fees. Some things that you should look for in a credit repair company are:
- Reputation – The reputation of a credit repair company is very important. It tells you how professional they are as a company and what their success rate is like.
You can either talk to family, friends, or work colleagues who have used such services or you can search for reviews. You must look for companies that have been around and have a good track record of repairing credit.
- Company license and insurance – Before you choose a credit repair company to work with, find out if they have a license to operate this kind of a service. Normally, there are state or local level requirements of registering a credit repair business with relevant authorities and holding a license to offer such services.
This may vary from state to state, but there is definitely a requirement. So, make sure that the credit repair company you are looking at complies with this requirement. Also, find out if they are bonded and insured. You want to make sure that you are protected in the event that something goes unusually wrong.
Feel free to ask the company to show you these credentials, as any professional company should not have any issues with giving you this information.
- Up-front fees – If a credit repair company is demanding an up-front fee before even finishing any of the work that it is supposed to do, then that is a red flag. You should be alarmed if a company asks you for an up-front fee.
It makes no sense to pay an up-front fee because you do not know if the company will actually do the work professionally or not. If the fees are paid after the work has been completed, then the credit repair company has the incentive to repair your credit in a professional manner. They have “skin in the game”.
- Ask questions to test the company – One of the best ways to gauge a credit repair company is by asking them questions about items on a credit report. First, educate yourself about the items. Then, ask the company about specific items, and observe if they give you the right explanation or not.
Once you have basic knowledge about a particular item on the credit report, you can gauge whether the company is giving you the correct answers or is just misleading you.
A professional and reputed company will not only give you the right explanations, but also suggest how a particular negative item on a credit report can be fixed. Face-to-face interaction is key in gauging the reputation of a company.
- Customer accessibility – If you are going to be working with a credit repair company on an issue as sensitive as personal financial records, then you want uninterrupted and uninhibited access to the experts. When you evaluate various credit repair companies, keep a special eye on the level and quality of customer service.
You need to ask questions like what is the availability of the customer service, is it 24/7, are there specific hours of operation, do you get direct access to my account manager, will you be assigned a specific person for my case, and so on.
The last thing you need after an already stressful situation due to bad credit is poor customer service that just makes you run in circles without getting a proper answer to your problems and doubts. Get a clear picture of how you will be communicating and engaging with the credit repair company that you intend to work with.
- Traceability – A credit repair company might claim that they have done a certain amount of work towards repairing your bad credit. But how will you know that the company is being honest? You need to ask how you can trace and check the work that has been done.
Will the company give you access to the work that is being done for you? Is there an online portal or some kind of system where you can check the status of your requests or milestones which have been completed?
In this day and age of technology, such things are reasonable to expect from a credit repair company. If a company cannot give you a satisfactory answer on the topic of traceability, then that is a red flag.
Green touch also offers credit repair services and works closely with its clients to ensure a high success rate. Fill out the form below or give us a call to know more about how we can improve your credit.