For the consumer it is important note that not all credit repair companies are credited equal. Unfortunately, like most industries credit repair has its fair share of questionable operators.
We often talk with clients after they have spoken to other credit repair companies and in many cases the information they have received is quite simply untrue, often in an attempt to have the person pay them upfront fees when in reality there was little chance of susses.
The removal of credit requires from a credit report is a good example. Credit repair is all about identifying errors and inconsistencies with how the credit provider’s record default listings, if there are no errors there is little chance of success. Credit applications or enquires are no exception; unless the credit provider was not given authorisation to make a credit enquire there is little chance it can be removed from a credit report.
Given this we are staggered at the amount of people that are told by other credit repair companies that they can have their credit enquires removed from their credit report. This promise often comes combined with large fees payable upfront. The unfortunate truth is in most cases these are empty promises and usually end with people losing their money.
How then do you separate the sharks from a reputable credit repair company.
1) Don’t pay large upfront fees. Some credit repair companies are charging upwards of $1000 plus as an upfront fee. While a modest fee for service is fair a fee over $600.00 before a result is delivered is a warning sign. A fair fee structure should always have the majority of the fee payable upon success only.
2) Did they take the time to really understand your credit problem? Credit repair is a highly specialised field and the truth is not everyone can be helped. If the credit repair company you spoke to just asked a few questions and then said we can help you should be cautious. Before any money changes hands the credit repair company should have taken the time to talk with you in detail to fully understand your situation and the background of the listing.
3) Beware of guarantees. If a credit repair company offers you a guarantee but still wants an upfront fee be careful. While a good credit repair company should be able to tell you your chances of success there are no guarantees. If a credit repair company truly offers a guarantee they should have no problem only changing a fee upon success like Clean Credit.
4) Don’t be afraid to ask for testimonials. A good credit repair company should have plenty of happy customers that would be only too happy to share their experiences with you.
5) Look for a credit repair company that is a member of the CRAA. The Credit Repair Institute of Australasia is the only legitimate credit repair industry body that carries a strict code of conduct for its members. For your peace of mind only ever deal with a credit repair company that is a member of the CRAA.
I hope this helps select a credit repair company that has the skills, knowledge and expertise to deal with your credit issue effectively.