When you’ve had a tough time with your credit history, credit repair programs can sometimes improve your situation. Your credit score is one of the most important numbers in your financial life and if it is not as good as it could be, you’ll pay more than you have to in many areas.
Are you going to make a big purchase in the near future? At that point, it’s time to start taking the necessary steps to fix your credit using a professional. If you’re considering using one of the many credit repair companies available, here is a few factors to consider before you decide.
Find Good Credit Repair Programs
During the process of evaluating different programs, it is important to see what other people have to say about them. Prior participants in the program can give you valuable information about what to expect when you join.
One of the best sources of information in this situation is the Better Business Bureau. The Better Business Bureau should have a profile on the credit repair companies that you are looking at if they are legitimate. These reports will show you how many complaints the companies have against them and whether the issues have been resolved.
Once you decide if the company is legitimate and has a good record with customer service, you’ll need to check the programs offered. Credit repair programs differ from one case to the next and not all of them are created equally.
Some credit repair companies help you find unresolved issues on your credit report and get them removed. Other programs help you negotiate debt repayment plans with your creditors so that you can eliminate your debt and slowly rebuild your credit score.
Understand the Fees
Besides evaluating the programs offered by credit repair companies, you should also look at the fees charged. The fee schedules for these businesses can vary widely. For example, some credit repair programs charge you a flat fee for their services. Others charge you a monthly fee for as long as you are in the program.
If the company negotiates a debt settlement for you, they may charge you a percentage of the settlement amount as a fee. When you are in the market for credit repair companies, there is nothing wrong with shopping around. This way, you can make sure that you are getting the best deal on the service you need.
Pick the Best Credit Repair Program
While you narrow down the choices, it may be a good idea to get realistic estimates of how much the companies can improve your credit by. Many companies will ask for information about your credit history, your debt load and your income to come up with a plan to fit your needs.
For example, one of the companies may give you an estimate of improving your credit score by 100 points over a period of six months.
When making your decision, combine the estimate of how much your credit can be improved with the costs associated with the service. Choose the best credit repair program with a company that you feel comfortable working with after doing a thorough evaluation of what they have to offer.