Five Factors That You Need To Check Before You Chose A Credit Repair Company

You find yourself in a financial mess and you need to get a loan for your car, new home or any other major investment in your life. You do not what to do, so you see the services of a credit repair company so you could recover from the situation as quickly and painlessly as possible. However, how do you know that the credit repair company you are choosing is not a fake and you are not scammed?

The Checklist That Tests The Company

It is easy to clutch at straw when you are drowning – but this would mean sure death. Hence, you need to check the company carefully:

1.Reputation – whether you work online or offline, you would need to check out what the reputation of the company is in the market. What people say about them, what has been their past performance and their rate of success. A good way to find out about this is ask them upfront. Most companies would love to share with you testimonials and references of satisfied clients. Check those carefully, and do some background checking yourself. Anything that shows less than 70% success should not be considered.

2.Deliverables – how does the company advertise? Do they promise instant credit score change? Do they offer anything that sound preposterous? Do they assure you with one hundred percent results? If yes, the company is definitely fishy – proceed with caution. A good company would promise less and deliver more. The deliverables would be logical and realistic. If you feel they are too good to be true – they are. Do not touch them with a barge pole because they would bring more grief than relief.

3.Word of mouth feedback – talk to your friends, colleagues and all those whom you know and ask about the company in question. If the company is a reputed one, someone or other would have some idea about the company. The word of mouth feedback is the best way to judge a company – you would receive real and unadulterated reviews of the company which would tell you whether it is indeed popular and efficient as it claims to be.

4.Check with relevant authorities – websites such as Federal Trade Commission showcases a wealth of information on credit repair companies and legal practices. Ensure that you know all that there is to know. Knowledge is power as you would not only learn about what you are entitled, but also where you could bargain to get the best deal.

5.Financial Counseling – the fact that you are looking for credit repair clearly says one thing – you are in trouble financially. This is the direct result of the imbalance between income and expenditure and that means that you have not planned and managed your finances well enough. Counselors would help you understand where you went wrong and how you could prevent this from happening next time. They would also help you overcome the grief and stress that results when you find yourself in bad credit bracket.

Sure Fire Credit Repair Tips That Would Turn The Tables Around For You

Are you struggling to make both ends meet while your debts are piling against you? Are you considered a risky proposition by money lending institution or organizations? Do not fret. Millions are there in the same boat with you. The first thing you need to do is take stock of your position and see how you could repair your credit score.

Some Great Advice

You need to get out of debt fast and improve your credit score as well. Check out the following few tips:

1.Debt consolidation – are you drowned by unmanageable debts that are growing at an alarming rate? Check out debt consolidation as a solution to your problems. Take your time and choose a debt consolidation agency that offers the best terms and conditions (and rates) and allow them to make all necessary negotiations and payment to your creditors. Ensure that your payments are unflinchingly regular to the debt consolidation company.

2.Pay off credit card accounts but never close them – credit limit offered by the credit cards add up for you and bring you a bigger (and better) credit score. Once you paid the credit card, use the card only when you can pay the bill in full when it is presented to you. Regular payments on credit cards scores very high. You would also need to promise to yourself that you would never use a credit card unless there is a life and death emergency. Maxing out any credit card impacts your score negatively.

3.Close accounts with positive remarks – if you still choose to close any of your credit card accounts, you would need to ensure that the remarks against ‘reason for closure’ should be positive. Unless it is mentioned that you have been a good customer and the account has been closed on request in the remarks column, the credit bureau is free to think that the account was closed because of non-payment or other negative aspects – and that would eat into your credit score.

4.Speak with a lawyer – many companies have issued loans without fully explaining and/ or checking the repayment ability of the client (you). In that case, defaulting payment is just a matter of time. Are you a victim here? A lawyer would tell you whether or not you have a case. In case the facts were misrepresented, you stand to win not only a better credit score, but also a hefty compensation in damages.

5.Increase your income – do what it takes to increase your income. Have two jobs, take up part time jobs on the Internet (as a freelancer) - do whatever it takes to increase your pay packet. Only then you would be able to save a little and keep off debt until you pay back everything.

Remember, financial discipline is a sure fun-buster – but then you would never have to worry about cash if you go by the rules. The above tips would enable you to get back a decent score – however, unless you straighten up with the expenses, you would fall into trouble again.