Credit repair services help to address errors on your report, which can in turn raise your score and make it easier to acquire loans. Unfortunately, however, the industry has had its fair share of controversy and scams; thus it’s essential that when selecting services it is clear how to identify red flags when making decisions.
Before selecting a credit repair service, always review its complaint history with the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent government agency which safeguards consumers against unfair, deceptive, or predatory practices by banks, lenders and other financial institutions – including credit repair services.
Reputable companies will provide you with a written contract that details their services, costs and timeline for completion. Furthermore, the best credit repair companies should provide information about how disputes are managed as well as frequent updates on any status changes to items on dispute.
Other than helping repair your credit, some credit repair companies offer additional perks, such as bill reminders and budgeting software as well as consultations with a certified credit counselor. Other features you should seek out are satisfaction guarantees, identity theft monitoring services and credit education tools.
One way to save money when hiring a credit repair service provider is by signing up for a free trial with them first, this gives you a chance to assess their work quality and whether or not their services are worth their cost.
Some credit repair services charge an initial setup and pulling fee, with others charging monthly until your credit has been repaired. But the best credit repair companies keep fees affordable; The Credit People have an affordable startup cost of $19. Ovation’s user-friendly interface also makes tracking progress on Experian, TransUnion, and Equifax credit reports and scores easy.
Even though credit repair can be completed on your own, the process is time consuming and research intensive. A credit repair company takes on that work for you – just be sure to read customer reviews and investigate them thoroughly before selecting any plan!
Be wary of credit repair agencies that exploit your misfortune by promising impossible results. For instance, these firms might advise disputing negative information that’s accurate but false and might charge to add you as an authorized user on someone else’s credit report – something not allowed under the Fair Credit Reporting Act.
Unfortunately, credit repair scams can be easy to spot by understanding the indicators. If unsure, contact your state’s Attorney General’s Office or Consumer Financial Protection Bureau for additional advice and resources.