How to choose a credit repair company
Not sure how to choose a credit repair company? Let me be of assistance to you. The first thing you should do is to interview them! That's right interview. After all you are hiring them - they will be your employees. You should interview at least three companies. Look for a company that will fulfill YOUR needs.
That brings us to my first point - What are your needs? Make a list of what you are trying to accomplish. Are you trying to buy a home or a car? What score do you need to achieve to meet your goal? How much time do you have to work with? How much are you willing to participate in the repair process - Are you willing to let the credit repair do it all or do you want to do some of the work yourself? Make a list of how you answered these questions then interview several companies looking for one that best meets YOUR needs.
Secondly, ask the credit repair companies what they will do for you. Some credit repair companies will be vague here - this is a bad sign - if they won't tell you about their process how can you hold them accountable later on for not completing their tasks. Ask them if they dispute with the three major credit bureaus. Ask them if they use certified mail (hint - most do not). Ask them if they will write your creditors. If the credit repair companies say they will write your creditors ask a follow up question: Will you write the creditors as me or will you intervene as a third party on my behalf. A creditor receiving a letter from a third party is usually more responsive than a creditor who receives a letter from you the consumer.
Know how much it will cost you! Sounds simply right but there are a few dangers hidden here. Let me elaborate. First, the pay as you go plans. Many, many companies offer this type of plan. Basically you agree to pay monthly and have the right to cancel anytime. Sounds good right? But give it some thought. Are they really going to fix your credit as fast as they can? Perhaps they will fix your credit but be wary - they may well try to fix it slooooowly while trying to keep you paying for an extended period of time! How about the pay for deletion model? Quite a few companies have switched to this model. Basically you agree to pay X amount of dollars every month towards your bill. The company agrees to fix your credit and only charge you for the corrections. The problem here is when you receive your first bill. Let me explain. Let's say you agree to pay $50 for the removal of every collection account, $15 for the removal of each incorrect name, $10 for the removal of each old address, $50 for the removal of each charge off account, $65 for the removal of each judgment, etc. Now, here comes the be wary part, you, as a consumer, are thinking if they get ABC collection company off your credit report you owe them $50. Surprise! That collection account was on all three bureaus so when it is removed from all three - that will be $150! Add in a few easy name removals, old address removals, and presto your first bill could easily be $800. You were not expecting that were you?!? No problem, the collection company will suspend your account while you pay them your monthly fee of $100 each month for 8 months before they do any more work for you. No exactly what you were expecting hun? These companies usually rake in $2,000 to $4,000 for a fully completed repair which is usually a shock to the consumer who was calculating a much smaller bill not knowing those charges were per bureau!
Don't forget to ask for references. Remember the last time you applied for a job? Didn't the prospective employer ask you for references? Look for testimonials from past clients, samples of their success, membership in reputable trade organizations, how is their better business bureau rating? All these things will help you find the company that is right for YOU! If you are talking with them on the phone, ask who the owner is? Sounds like a simple question but it will certainly help you determine how forthright the company is willing to be with you!
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Matt
Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street Suite 402
East Hartford, CT 06108
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