Finding the Right Credit Repair Company

If you have decided to fix your bad credit, there are credit repair companies that can help you. This is a big decision and not one you should take lightly. On average, a credit repair company will cost a few hundred dollars and their program usually lasts a year.

You don't want to choose the wrong company and find yourself deeper in debt without being able to improve your credit. On the other hand, if you find a great company to help you, it could be one of the smartest financial decisions you make!

Phillip Shockey

First, let's take a look at what you should hope to get out of a credit repair service. Take a look at your credit and ask yourself what you think needs to be improved. Credit repair goes beyond disputes with your credit companies and the credit bureaus.

Credit repair has previously been seen as something that fixes your credit report. Now, working to repair your bad credit can also help repair your credit report. Under the Fair Credit Reporting Act, you have the right to dispute any entries you believe are in error.

This part of credit repair is very beneficial for people who have incomplete or inaccurate information on their credit report. Of course, this will only help your credit score if you get the entries corrected.

This is just the beginning of repairing your credit score. Although some people are not satisfied with just working on correcting their credit report. When you find a reputable credit repair company, they should also work with your creditors to stop them from reporting negative accounts.

Another thing they should do for you is contact collection agencies to get them to stop reporting negative accounts. Some credit repair companies will even dispute some reported debts and find out how legitimate those claims really are.

Now, how well a credit repair company can help you depends on your individual credit situation. Some people may only want help with correcting their credit report, while others may need more extensive help and look for a company that offers full credit repair services.

Here's an important question most people ask: How can you tell if it's a reputable credit repair company? The industry has a bad reputation because many scams have taken place. Fortunately, the fraudulent companies have been shut down. I think it is still necessary that you take some precautions and find out if you have found a reputable company before you work with them.

Familiarize yourself with some of the laws that surround credit repair companies. The Credit Repair Organizations Act was written to protect you, the consumer, from any credit repair scams. They also protect your right to get credit repair help for your report.

There are always the Better Business Bureau (BBB) reports, they keep all complaints on file made against businesses. If there are multiple complaints against a business or a low rating, proceed with caution.

Also, if you come across a business that does not list "credit repair" in its services on the BBB, be careful. The nice thing about the BBB is that they have high standards for credit repair companies. If you have found a company that may be fraudulent, the clue is that they do not have "credit repair" listed with the BBB.