Three Important Things You Want in an Online Credit Repair Company

June 2nd, 2009 | Posted in Credit Repair

If you’re not constantly keeping an eye on your credit report, you might find some surprising errors and mistakes or even a couple black marks. Thank goodness a credit repair company can help you patch that record up. You have to be wary of scammers though, and make sure to choose a reputable credit repair company. These tips will help you choose the right one.

Upfront payments are for the birds

You don’t want to use any service that asks you for a fee or payment before they will even consult with you. A trustworthy company will sit down with you, address your credit report, and look into your current situation, before determining any type of payment for their services. A company that wants money first should be a red flag from which you turn away immediately. No matter how bad your situation, make sure that whatever you’re being charged is not exorbitant. If you’re told your case will cost thousands of dollars, look for another one.

Re-inventors are lawbreakers

You may find some offers encouraging you to “reinvent” yourself with a new Social Security number. Don’t fall for it. Most of the time the agencies will try and get you a new credit report by using an employee identification number, a tool used in business, which looks like a Social Security number. Using an employee identification number in this way is called “file segregation” and it is illegal. If a credit repair company suggests this practice, it’s time to find another one.

They should make it possible for you to help yourself

Trustworthy firms will give you advice on things you can do to improve your credit on your own. They will give you this advice up front and for free. Some examples would be ways to write your creditors, and how to contact credit reporting bureaus about errors. If a credit repair company advises you to do anything illegal or unethical, like disputing legitimate charges and fees on your credit report, do not use them.

Before making a final choice, be certain to check with the Better Business Bureau. They keep records of formal complaints against companies and can help you avoid scammers and ripoff artists.

With the economy the way it is, credit repair companies are more in demand than ever. Unfortunately, this huge demand has resulted in a flood of less than honest companies. It’s important to pick a reputable service if you want to fix your credit.