If you think that you do not have the ability and competence to fix your own credit report, you might as well take on a professional credit repair service. The service provider you should choose should be someone who is reliable and has a good track record. You can also base your search if they are certified by the Better Business Bureau or a member of the National Foundation for Credit Counseling (NFCC). However, it is important to note that whatever action a credit repair service can do, you can do at little to no cost at all. You just have to have time, patience, and determination.
It was in the year 1996 when the Credit Repair Organizations Act (CROA) became a law that protects unsuspecting consumers from deceptive advertising and business practices from credit repair organizations. This is in response to the increasing number of people becoming victims of scams and con artists posing as credit repair service willing to help them fix their credit.
Here are the steps on how to choose a credit repair service without you becoming victims of scams:
1. Instead of hiring the first credit repair company you see from your Google search, check first your credit report. Credit reports are requested for free. You should have a copy of each report from the three major credit bureaus for you to check if the information reported are accurate or not. You can determine if the problems in your report require the assistance of a professional service provider.
2. Do your research in choosing a credit repair service. You can browse around the internet regarding the company you are interested in. Reviews and feedback from other consumers are available on the net which can guide you in your choices. You can also ask financial institutions like your bank if they can recommend someone who is reliable. Friends and families can also give suggestions.
3. Once you narrow down your search, contact the company you are interested in and ask questions. Important information like what services do they provide, how much service fee do they charge, and whether they provide a written contract for the services they give is very important. Always be wary and cautious. Do not hesitate to ask questions and the legality of the services they provide.
4. Be sure to stay away from companies who promises to increase your FICO scores significantly in a short period of time. There are cases where you can increase your scores fast especially if it involves errors reported on your account. Once you send in the dispute and the credit reporting agency see the error, they can reverse or correct within 30 days. An increase of score usually happens between 60 to 120 days.
5. If the company offers you deals that are too good to be true, most likely it is a scam.
6. It is important that the company you are dealing with has a customer service representative that is human. Automated service cannot give you quality service whenever you need it.
7. Be wary when the company demands payment before performing any services.
Credit repair is important especially for those who desire to increase and improve their credit standing. One cannot afford to become victims of someone who, instead of helping, will all the more pull you to a much worse situation. You may also consider id theft protection to maintain your credit.