How to Find A Legitimate Credit Repair Company Without Getting Scammed

by Josh Biggs in Finance on 13th June 2021

You may find yourself unable to pay some debt. It could be a bank loan, a credit card debt, or money you borrowed to buy a car. So, when the going gets this tough, you may find yourself behind schedule. A few months down the line, you may find yourself on the bad side of the credit bureau. You end up with a poor credit history which may hinder plans to secure future financing. If it happens to you, you may need to contact a company to help you repair your credit history.

Credit bureaus compile credit reports and sell them to willing buyers. They collect and compile credit account details concerning borrowing and repayment. They also compile other reports on bankruptcy, liens, garnishment, and financial judgments and avail them to lenders.

When you have a poor credit report, it can be difficult for you to recover from financial setbacks. You will get behind on bills and become vulnerable. Therefore, you must work hard to remove your name from the list of defaulters. Unfortunately, there are many companies out there who will promise to fix the problem for you. If you trust all of them, you will get scammed. Here is how you can find legitimate credit repair companies without risking being scammed.

1. Listen to their advice

Of course, there are many entities out there who will claim they are in a position to help you to repair your credit score. Some of them are genuine, but others will be luring you into committing fraud or stealing from you. Some will claim that they can sell you a new social security number with a clean credit score so that you apply for new loans without hindrance. Others may claim to sell you an alternative nine-digit number. If you are not careful, you will get scammed.

If they tell you that they can repair your credit and bail you out of bad credit records without telling you how to go about it, know that it is a scam. Also, if they tell you to submit false information to help you get cleared, don’t trust them. Also, if they tell you to dispute some info on the credit report which you know is correct, dismiss them.

2. Look at the procedure they use

You may consider working with a company that outlines the procedure you will need to follow to repair your credit history. Remember, it will take time and effort to repair your account. It may also take more time to pay off the debt. So, a company that suggests options to help you raise the money to pay off the debt could be reliable. If they have a working plan, you may need to stick to the plan.  Also, a good credit repair company should link you to a counseling organization. The counselor should help you come up with a plan to help manage the debt.

3. Look at the terms

If you cannot pay your debt on time, it implies that you are having financial challenges. So, working with a company that insists that you make some down payment before they help you fix your credit problem raises eyebrows.  Also, let them disclose and discuss the methods they will use to help you fix your credit issue beforehand. If they suggest illegal methods or require that you lie, they may not be genuine.

4. Look their history

If the company has helped some people, there should be some information to back up their claims. Visit their website and look at what they do and read their reviews. Also, check out what previous customers say about them. If they are genuine, you should be able to get the information on their website. Note, that we have plenty of websites that solicit reviews that can be helpful to you so you don’t have to go searching all over the web. So, getting more details from independent reviewers could be helpful. Also, ask them to refer you to former clients who have benefited from their services.

You are likely to come across many companies that will claim to help you fix your credit woes. They may also have received mail, an SMS, or a phone call telling you that they can help you fix the bankruptcy or remove bad loans from your credit history. Unfortunately, most of those companies are phony and may not be of help. Let them outline the procedure they will use to help you. If the method is illegitimate, don’t listen to them.  Also, check out for scammers who may pretend to have a working formula only to pounce on you after they get the better of you.

Categories: Finance