Need Credit Repair? Know These 3 Key Facts Before Choosing a Service
(ConservativeInsider.org) – Credit scores are one of the most important ways to measure a person’s financial health. The scores, which range from 300 to 850, let lenders know whether a person is doing well financially by measuring if their payments are on time, how much debt they have, and if they have any delinquent payments.
Companies use the scores to decide whether a person is a safe risk for a loan, rental, and even for certain jobs. If their score is on the high side, they will have a much easier time getting a loan and have to pay lower interest rates. If it’s poor, it could impact a person’s entire life.
Fortunately, for those with a low rating, there are ways to repair their credit score. One of the most popular ways people do it is through a credit repair company. Here are three ways to tell if one of those companies is good.
1. Who Is On Staff?
It’s incredibly important to hire a credit repair company that has experts in the financial field. A person wouldn’t hire a cardiologist to perform surgery on their foot; likewise, they wou’dn’t want to pay a handyman to get their finances in order. Look for a service that has financial and tax professionals. A company with lawyers on staff is also a good idea, and they might come in handy later if they need to negotiate debt settlements.
2. Reviews, Reviews, Reviews
Before hiring a credit repair company it’s incredibly important to do a thorough background check. Find out what other customers are saying about the company. Did they help the other consumers get out of debt and repair their scores?
Also, checking both the Consumer Financial Protection Bureau and Better Business Bureau websites to see if there are any complaints against the repair service.
3. Affordability
Traditional credit repair companies can be pricey, though it can definitely be worth the price when you find a good servicer. Not everyone can afford to pay for that kind of advice. That’s where companies like Credit Karma come in handy.
Credit Karma is a free app that allows you to keep track of your score every day. The app allows users to enter goals and then it gives them advice on how to meet them.
Watch Out
One important thing to remember is: if something sounds too good to be true – it is. Credit repair companies that claim the process is quick and easy are lying. Rebuilding credit can be a slow, frustrating process, and it could take years depending on how low the score is to start with.
Also, keep in mind that although reputable credit repair companies are great for people who want to get back on a healthy financial path, it’s not the only way to do it. Rebuilding credit is pretty simple; it’s a matter of paying down debt, keeping credit usage under 30%, and making payments on time.
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