There are more and more credit repair firms every day. There are some that are even getting sued! How can you pick one that properly assists you in getting a better score? How can you separate the wheat from the chafe? We have some advice on how to pick the best credit repair company.
The first thing you should do is to check your state’s division of consumer protection. Most states require that credit repair agencies be permitted in that state. If they are not permitted, they more than likely are not bonded either. If they are not bonded, they are not protected from actions taken against them by customers and with one small lawsuit could disappear overnight. Stick with an agency that is permitted and bonded in your state.
Another feature you should look for to find a legitimate credit repair company is to check if they are certified. Certification in any discipline shows that people have taken classes or exams in their field of discipline. One known certification is the Board Certified Credit Consultant. You can even go to the Boards site to check on their members to see if they have an A or F rating. This is not the only certification but it is highly recognized throughout the field.
Can they advise you on how to handle debt collectors? Debt Collectors are ruthless and constantly violate the Fair Debt Collection Practices Act (FDCPA). They should be able to explain your rights to you and how to best interact with them to prevent further damage. Many of the well-known agencies don’t even touch this aspect in credit repair and we ask how could you not?
In addition, looking for a local credit repair agency that will meet with you in person if you so wish is another important feature. If they can’t meet with you in person, they should at least contact you every 45 days to discuss the action that happened on your last round of disputes. Another reason to pick a local credit repair agency is they will be more in sync with the local laws related to credit bureaus, creditors and debt collectors. Often in-state debt collectors can be more aggressive and a local credit repair agency will be affiliated with a local credit repair attorney if you do need one.
One of the first signs you picked the wrong group to work with is you will not receive notifications from the credit bureaus every 30 to 60 days. If they are disputing for you, they should have you turning over those notifications to them so they can judge their success on the last round. There is no such thing as fast credit repair, but if you are not receiving the reports from the bureaus then move on. Your credit repair specialist should make sure to discuss with you.
Other issues should be how did this company find you as a lead? Was it through a solid recommendation such as an affiliate that you both know? Or did you get hit by bulk e-mailing, or even worse a robocall that was aimed at your number for whatever reason? Avoid credit repair firms that utilize the unauthorized telemarketing and violate the Do Not Call Registry.
If you are looking for a local firm, pick one that cares about your long term financial strategy and one that has some type of financial coaching in place. Part of that should be the asking why you to want a better credit score and what your financial goals are. Most of you are repairing your credit for a big goal such as buying a new home or car. Find a firm that brings you to that goal!
If you have any questions on how we can help with your credit score, check out our Contact Page and send us a message! Also, check our article about the important parts of your credit score.