Today, due to the economic outlook, credit scores are more important then ever. Your credit score affects whether or not your or approved or denied a bank loan. What are your interest rates like for you home loans and your credit cards. They affect insurance premiums and home and car down payments. Your credit score can even prevent you from receiving employment, or from advancing in the job you currently have.
Your credit score can save or cost you hundreds of thousands of dollars over the course of your life. A credit repair company help you maximize your score. Your credit repair company should help eliminate the negative information, allowing your positive credit to be accentuated. Your credit repair company should educate you about credit and how it works. A credit repair company should even be able to help you build credit for the future.
Three Important Credit Repair Company Factors
- What is their fee philosophy?
- Are they affiliated with a law firm?
- What additional services do they provide?
Credit Repair Company Fee Philosophies
Upfront Credit Repair Company Fees
Upfront fee philosophies are where they charge their entire fee for attempting to fix your credit at the beginning of the business relationship.The clear problem with this philosophy is accountability. Once money has exchanged hands, what is the motivation for a credit repair company to do a good job? Credit repair has no guarantees, so you are paying for the attempts to fix you credit, but not the results. This philosophy has recently been deemed illegal; however, there are still several companies built around this fee structure. A credit repair company using this method can be fined or shut down at any time.
Month to Month Credit Repair Company Fee Philosophy
The most common fee philosophy is Month to Month, where the credit repair company receives payment each month you continue with the program. It is in the credit repair company’s best interest to keep you with them for as long as possible. The longer you are with them the more commission they earn, and may have contracts for a minimum amount of time with high penalties for early cancellation. Typically, these take the longest to repair your credit, often resulting in high fees over time. With no guarantees, you are paying for the attempt to fix, but not actual results.
Pay For Deletion Credit Repair Company Fee Philosophy
With Pay for Deletion, you pay per item, after it is repaired. This philosophy require you to only pay for results, not the attempts. There are no upfront fees monthly contracts. This philosophy has your best interests in mind, because the credit repair company’s commission is directly related to results. This incentive produces you the highest results and fastest service.
Credit Repair Company Law From Affiliation
A credit repair company that is affiliated with a law firm can actually provide results. All credit repair companies start out by sending letters on your behalf to repair your credit. If there is no law firm affiliation, they do nothing that you are unable to do yourself with a little research and time. Law firms can take companies to court. This ability gives them more credence when dealing with credit reporting agencies and creditors. They can also facilitate debt negotiations. A credit repair company affiliated with a law firm can speak to a company’s lawyers and cut through the red tape. It is important to have a law firm that participates with the litigation of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices Act (FDCPA). These factors ensure that you are dealing with a credit repair company, and a law firm that is accountable and capable.
Additional Credit Repair Company Services
Most people that have lower credit scores are unclear on how to originate new accounts. Are new contacts available for you? Can they assist you in establishing new credit? Do they educate you about credit? Many people have are unaware that payment history only accounts for 35% of your credit score. Will they take the time to explain everything to you? The credit reporting agencies are keeping score like a video game. Your life is not a game, but if they are going to treat it that way; you should know how to play the game.
When looking for a credit repair company, you are looking for a law firm that specializes in FCRA and FDCPA rules and litigation. You are looking for a company that can educate and assist you in originating new accounts. You don’t want a company that charges you upfront or month to month. You want a company that is accountability orientated and only charges for results. You are looking for Certified Credit