Do Your Homework Before Hiring a Credit Repair Online Service

When it comes to credit repair, you have a lot of choices. But not all are created equal. Scammers prey on consumers who are desperate to fix their credit, which is why it’s important to do your homework before hiring a company to clean up your report.

A good place to start is by reading online reviews from other consumers and checking the Better Business Bureau’s rating and review system or Yelp. You also want to make sure the company you choose follows The Credit Repair Organizations Act (CROA), which sets forth clear directives that companies should follow.

Once you find a company that meets your requirements, it’s time to decide what plan to purchase. Many companies charge a monthly fee that includes a set number of credit bureau disputes, creditor interventions and financial tools like budgeting software. A few also offer a one-time credit report and score analysis for free.

Credit repair companies work by disputing errors on your credit report with the three major consumer credit bureaus — TransUnion, Equifax and Experian. The credit bureaus then investigate those disputes and either remove the inaccurate information or verify that it is correct. Depending on the severity of the errors, some credit repair companies may also negotiate with your creditors to settle or lower your debt.

Ultimately, the credit repair process will improve your credit score if there are mistakes that can be corrected. But it’s essential to remember that it is a slow-going process. Even with the help of a reputable credit repair agency, it can take months before you see any real improvement in your score.

In order to be effective, your credit repair company must have a state-licensed attorney on staff who is authorized to make disputes on your behalf. In addition, the attorney should be a member in good standing of your state bar association.

Finally, the credit repair company you select must provide you with a contract that clearly outlines the services they will provide, how long it will take to get results and any guarantees offered. If the company you are considering does not meet these requirements, it is best to move on to another option.

Keep in mind that if you apply for new credit, the lender will run a hard inquiry on your credit report, which can temporarily drop your score by several points. Therefore, you should avoid applying for any credit unless necessary until you have your credit repaired.credit repair online