There are several things you should understand before hiring one of the best credit repair companies. When looking for the right credit repair company for you, it's a good idea to consult the CFPB complaint database and check how many complaints, if any, have been filed against that particular provider. You can learn more about how to select the right accredited credit counselor for you at the National Foundation for Credit Counseling. Before you apply for a loan or open a new credit card account, consider the effects this could have on your credit.
However, it's important to note that the credit repair process only addresses the wrong or misleading elements, not everything that negatively affects your score. You'll also have to pay a one-time down payment during the first payment, which can influence the average cost of credit repair. The credit repair process begins with a free consultation, either by phone or through an online appointment. If a credit repair company has a history of violating federal laws, you may want to be careful when doing business with them.
There's nothing a credit repair service can legally do for you, including eliminating incorrect information that you can't do on your own for little or no expense. However, almost all companies also have the fine print in their 90-day money-back guarantee, which voids the warranty if you worked with another credit repair company up to six months ago. Some will offer a money-back guarantee or financial planning tools, while others will offer basic credit repair options and nothing more. During the first step, the company draws your credit report from all three credit bureaus to determine if you will benefit from their services.
This law requires credit repair companies to take certain steps, such as informing you of your legal rights, giving you three full days to cancel your contract, and informing you in advance of the total costs of their services. You can freely challenge any errors in your credit report, in accordance with the Fair Credit Reporting Act (FCRA). Unfortunately, the credit repair industry is rife with scams and identity theft, so it's vital to research the companies you want to work with. If a credit repair agency doesn't offer this information, you should stay away from it completely.