Are There Trustworthy Credit Repair Companies?
You may have seen ads for companies that promise your credit score will see “a 100-point jump immediately!” Sounds fishy, right? It’s because it is. In fact, it’s illegal for a credit repair company to promise results like that and any company that does so is one you should steer clear of.
There are other red flags you should keep your eye out for when looking for a reputable credit repair company.
“The FTC prohibits credit repair companies from charging for credit repair before any work is complete,” Padawer said. “Run fast from anyone who asks for money upfront or who promises a new credit file overnight.”
Here are some of the things you should want from a credit repair company. Always….
They know your rights and want you to understand them too. Before you sign any contract, a reputable credit repair company will explain your consumer credit rights to you and answer any of your questions regarding those rights.
They want to know your story. It’s important for a credit repair company to understand why you want to dispute an item on your report so they can make sure those three standards Padawer mentioned — accuracy, fairness and full substantiation — are upheld by the data furnishers and the credit bureaus.
They can explain, in detail, what they can do to represent you to the credit bureaus. Any good credit repair company knows what they can and can’t do for you and should be able to outline their services so you fully understand what you’re getting.