Having a poor credit score can drastically reduce your chances of securing a loan and acquiring certain services. If you feel that your credit score is crippling your investment efforts or holding you back in some way, then it’s crucial that you get it fixed. There are numerous options when looking at a credit repair agency that promises to boost your credit score within a short time. However, very few honor their word. Check out Observer.com to get a complete list of the best credit repair firms this year.
Here are 5 important things to consider before hiring a credit repair agency:
Experience and track record
When selecting a credit repair agency, it’s important to check their years of experience. Ensure that you prioritize companies that have been operating for several years. Also don’t forget to look at user reviews and testimonials from trusted review sites online – they will help you to gauge the quality of service to expect from your preferred credit repair firm. As a rule of thumb, you should hire an agency that has an impeccable track record and years of experience under their belt.
Service delivery process
Different credit repair agencies have varying service delivery timelines. Some companies promise to restore your credit score within a few months while others guarantee faster results. It’s important to choose a reliable credit repair firm that is committed to delivering the desired results as quickly as possible. You can inquire about delivery timelines before hiring your preferred credit repair agency to avoid getting delays.
Charge rates differ from one credit repair agency to another. There are firms that operate a “pay for removal” fee arrangement that involves eliminating all negative items that exist on your individual credit report. On the other hand, some agencies charge a fixed monthly fee for their services. These diverse types of fee agreements have their fair share of benefits and drawbacks. Therefore, it’s important to discuss this issue with your shortlisted credit repair companies before choosing your pick. Avoid hiring agencies that quote you for absurdly lengthy periods (longer than 6 months).
Adherence to licensing and bonding requirements
For a credit repair agency to be accredited, it should operate under relevant federal and state laws and be audited from time to time. Apart from being licensed, the credit repair company must also acquire a bond that effectively protects clients from any potential cases of misconduct that it engages in. Different states have varying bonding and licensing regulations, so ensure you conduct in-depth research to find out the specific laws governing credit repair firms in your state.
It’s very important to request for references from your credit repair agency. These references should consist of customers who have worked with that particular company in the past. This provides clarity on how competent your preferred credit repair firm really is. Some agencies may fail to provide you with references, claiming that it’s confidential information. In case this occurs, seek attorney references that can firmly vouch for the credit repair company’s legitimacy.
Ensure you put these factors into consideration before hiring a credit repair company.