Credit repair services
A credit report is meant to indicate the quality and financial representation of a person as a buyer. While that is true to a major extent, there are some unfortunate cases where credit reports are inaccurate. Such negative reports do not reflect the true creditworthiness of victims of erroneous credit information.
There is also a possibility that a person has faced financial challenges leading to bad credit. Whatever the reason, the bad credit has to be fixed because it can cost you a lot of money and you can be denied important financial services.
There are a whole host of actions which you can take to repair bad credit on your own. Some of these include sending a letter to the credit company pointing out what is wrong with your report, consolidating your debts, and keeping a watch on your spending habits.
If you are looking to have somebody by your side throughout the process and do not mind paying a bit for a professional expert, you can hire a credit repair service company.
Features offered by credit repair companies
There are plenty of credit repair services that help you fix your bad credit and raise your credit score to a reasonable level. These companies offer an array of services. Depending on your requirement, you need to pick the right company that has experience and reputation when it comes to fixing bad credit.
- Free credit report evaluation and summary: Most well-reputed companies offer a free credit report summary or an evaluation to new and existing customers.
This is a handy feature to have, as a credit report evaluation is the very first step that needs to be taken in the credit repair process. Having a report evaluated for free is something that you should seek irrespective of whether such a feature is offered.
- Discount for couples, families, and military persons: Some companies offer discounts for family members or members living together (as in roommates).
This is a great feature because, in many instances, family members or roommates will have similar credit issues. In case of family members, fixing credit of all the members at the same time can be very helpful for financial planning.
- No fixed term contract, cancel anytime: Many credit service companies lock their customers into a contract for a fixed time period. This can be good or bad.
It can be good if you know exactly how long you will need the services of the company and you can lock in a price/terms conditions to get a stable level of service without any hassles. But in many cases, this could be a downside because you may realize after a few weeks or months that you do not need the service anymore, or need to use the service sparingly.
Having the ability to pay on a month to month basis can give you the option to end the contract as soon as you feel you are done.
Paying a fixed amount every month for services that you don’t need does not make sense. So, try to work with a credit repair company that allows such flexible contract terms.
- Quality of lawyers and paralegal: Having a large legal team signifies variety and depth of services offered. A high quality team of paralegals and lawyers will help you understand the nuances of laws regarding the repair of credit.
The stronger the legal team, the better the understanding of the law. The credit repair company with a good legal team will guide you in deciding what to dispute and when to dispute.
- Credit monitoring: Credit monitoring essentially involves a company keeping track of any changes that are made to your credit files at the country’s three biggest bureaus – Experian, Equifax, and TransUnion.
It informs you every time a credit limit is increased, a large transaction takes place, or a new account is opened in your name. There are many other transactions besides these that are monitored.
Besides credit monitoring, there are identity monitoring services as well which keep a track of your personal data such as driver’s license, passport, social security number, etc.
It is important to track this personal data because it is used to make applications for loans and other services. Monitoring allows you to distinguish between legitimate applications and fraudulent activity. Some credit repair companies offer this service along with the credit repairing.
If you know that your data has been leaked or have been through identity theft and are expecting more fraudulent activity, then it could be worth having monitoring services as an add-on.
- Longevity: Years of experience is important. Nothing can substitute years of experience and the knowledge that has been built up incrementally. Having experience allows a firm to tackle any kind of situation, commonplace or unique.
An experienced credit repair company can solve all sorts of bad credit problems. They also know exactly how long it will take to get a negative item off your report.
A professional company will instantly inform you when you should dispute something and when you shouldn’t because they have been there and seen it all. Some companies have less than 10 years of experience, while there are some which have 14, 21 and even 29 years.
Sky Blue Credit has over 29 years of experience! It is one of the oldest companies that operate in this industry.
- Reputation: One of the most important factors when choosing a credit repair service company is the reputation of the firm. You will have to explore their website and even call customer service to know what it is like to interact with them.
You need to evaluate how professionally they approach your inquiry. You can also try to find reviews about them or ask family/friends if anyone has had experience working with the company before.
The reputation of the company is a reflection of how well they go about repairing a customer’s credit.
- Money Back Guarantee: If the company cannot raise your credit, then they will offer to return your money. Not all credit repair companies offer this guarantee, but the best ones often do. Seeing this feature is a mark of quality and reputation.
It suggests that the credit repair service company is very confident that they can get the job done for you. It shows that they have the experience and expertise to feel confident about their delivery.
- The rate of dispute resolution: It may take a few months to repair your credit. If the negative items on your credit report are accurate and correct, then they may show up on your credit report for as long as 7 to 10 years.
However, there are some companies which dispute many items in one go. For example, Sky Blue Credit Repair will dispute up to 15 items in one go. Many other companies will start with only a few items and take it forward as the process evolves.
So, if you are looking for a faster rate of dismissing bad credit items, choose a company that can dispute a high number of items right away.
- Pricing: Last but not least, the pricing of the service is important because you will be the one paying out your hard earned money after all. Compare the prices of various credit repair companies.
If a Lexington Law is too expensive for your budget, explore a company like Sky Blue. Have two to three options at the end of your research in different price ranges. Make sure that you do not compromise on the quality and reputation.
Trying to save on price but picking an unethical company will not do you any good. There are many scam companies in the credit repair space, so be thorough in your research. The main thing to keep in mind is that you must maintain a balance between price and quality.
Credit Repair Organizations Act
Before you decide to engage the services of a credit repair company, you should know your legal rights and be aware of the Credit Repair Organizations Act. As per the Credit Repair Organizations Act of 1997
Credit repair service company must complete all the services before taking money from the consumer.
A legally valid written contract is a must to engage in credit repair services. This contract must clearly state the terms and conditions, delivery of services, and schedule of payment.
Consumers have the right to withdraw from the contract in three days if they are not sure about the service.
Credit repair service companies have very strict guidelines about what they can and cannot ask you to represent
to the credit reporting companies.
There are specific guidelines to prevent them asking you to misrepresent information or mislead the credit reporting companies about any of your data. Keep this in mind throughout the process and raise the issue whenever you are uncomfortable with anything that a credit repair service company asks you to do or communicate.
Credit repair service companies cannot ask you to sign on any sort of document or statement which suggests or says that you are forfeiting your rights under the Credit Repair Organizations Act.
Any effort taken to repair your credit cannot guarantee a positive result. Working with a professional service can improve your odds. If you are not sure about what you are doing, then a credit repair service is worth exploring.
The question that you really need to ask yourself is whether spending money on a credit repair service is worth it. If you are going to borrow a home loan with bad credit, then your interest cost over the term of the loan could be 50,000 to 100,000 more simply because your credit score was low.
The same principle applies to a car loan, you will end up paying $3000 to $5000 more in higher interest rate charges. So, fixing your credit can definitely save you a substantial amount of money. Feel free to call us or fill out the form below if you want to explore Green Touch’s credit repair service.