|
The credit repair industry has become a crowded place. Recent economic turmoil has prompted more stringent lending restrictions that have resulted in making a high credit rating much more important than in previous years. No longer able to get approved for credit, thousands are looking to credit repair services for help. Hoping to capitalize on the trend, new credit repair providers are being created all the time claiming to be experts at fixing bad credit.
With so many new and inexperienced credit repair organizations coming onto the scene, many of which are simply turnkey businesses using third party software as the backbone of their product, it becomes a challenge to figure out who you can trust with your credit. To help separate the best credit repair companies from the greenhorns looking to make a quick buck, here are some suggestions for spotting a reputable credit repair company:
1) Check for experience - Creating a credit repair company is remarkably easy. A person only needs a web site and a few hundred dollars to pay for a software package. Remaining in the business and producing results for customers is harder. The leading credit repair companies typically have a history of helping people which not only indicates a stable business, but it is also a sign that the company operates within the confines of the law since most underhanded credit repair companies have a short lifespan.
A credit repair company's BBB report will show how long the company has been in business. If the company does not have a BBB listing, it could be a red flag since the company may be very new or flying under the radar. When you are unable to determine how long a company has been around, you can try performing a WHOIS search of their website's domain name to see how long it has been since it was registered, but odds are if it takes that much work, you're probably better served looking elsewhere.
2) Look for an offline presence - The Internet is ideal for commerce, but the process of repairing your credit is more effective when conducted offline. Trustworthy credit repair companies usually have a physical location you can use as an indication of how solid the company is. Mapquest or some other satellite imagery service is a great tool for checking out the company's headquarters. Grab the company's address, load a map and see if the company occupies their own building, operates in an office complex, rents out a location in a strip mall, or has the mailing address of a personal residence.
3) Look at pricing and payment options - Drafted in the mid nineties, the Credit Repair Organizations Act CROA establishes rules that credit repair companies must adhere to. One of these is to only accept payment for services after the agreed upon services have been performed. This restriction was created to protect consumers from fraudulent companies who would charge large upfront fees and then never fulfill their end of the arrangement.
Naturally, you should avoid credit repair companies who require an upfront payment.
In addition to finding out how much and when you will be expected to pay, make note of the payment options. Most reputable companies will, at a minimum, give you the option to pay via credit card on their website or over the phone.
Many people who begin searching for the top credit repair service end up selecting Lexington Law to help them with their credit. Lexington Law has established itself as a leader in the credit repair industry as is evidenced by the over 1 million negative items clients saw removed from their credit reports in 2009.
|
|
SIGN
UP FOR FREE
