3 Things To Seek For In A Credit Repair Company Online
If it's been a while since you've looked at your credit report, you may be astonished to find errors, mistakes, or even a black mark or two. Luckily, a Credit Repair Company can help you fix those inaccuracies and erase those black marks. Watch out for scammers, though, and choose a trustworthy Credit Repair Company with these tips:
Don't pay anything up-front
Avoid a Credit Repair Company that wants you to hand over a fee or payment before they meet with you. Reputable companies will first chat with you, evaluate your credit report and discuss your current situation before requesting for any type of payment for their services. An up-front fee is a red flag that the business will probably take your money and run. And no matter what type of charges you may sustain, be sure they aren't overpriced. If a Credit Repair Company claims your case will cost thousands of dollars, look for another one.
Watch out for "re-inventors"
Some companies will tell you that you can streak your credit slate clean by "re-inventing" yourself with a new social security number. But that's not true! In most cases, what they strategize to do is get you a new credit report by applying for an Employee Identification Number (EIN)--used by businesses--which resembles a social security number, and you're told to use it for that. But this practice, known as "file segregation," is a scam, and it's also illegal! Avoid any Credit Repair Company that proposes this practice.
Look for one that assists you in helping yourself.
A good Credit Repair Company will inform you (for free!) what you can do yourself, such as writing letters to creditors and contacting the credit reporting bureaus about errors. Avoid any Credit Repair Company that inspires you to do anything illegal or unethical--such as disputing a legitimate charge or fee on your credit report.
Before signing up with any Credit Repair Company, ensure that you check with the Better Business Bureau. They'll have archives of any formal complaints against the company, so you can dodge scammers and rip-off artists.