A person’s credit score can be a cause of stress, especially if it is a low credit score. There are so many different parts of a person’s credit report that go into figuring out a credit score, and sometimes it can be overwhelming for a person to understand their credit score and work on improving it alone. Sometimes people looking to improve their credit score also find quick ways to do it, that “guarantee” quick results of a high score. These schemes are not safe and usually backfire, resulting in more frustration and stress. If a person feels they cannot handle it alone, they should think about hiring a company to help them improve their credit score. Here are a few reasons that a person might be better off hiring a company to help them improve their credit score and how to find a good company that will really help.
The service a company can provide to improve a credit score
An error such as outdated information or even incorrect information on a credit report is in the hands of the owner of that report to repair. These errors can take a long time to be fixed when a person attempts to do it themselves. It is possible that it could take an average of four years with a lot of work involved such as reviewing and highlighting the errors, documenting the mistake, typing a letter and mailing it. A credit repair service will do this work for a fee. This will save a person a lot of time, and many of the companies guarantee to erase bad credit.
Watch out for schemes
If a credit repair company promises things that mean they would be removing current and correct information from a person’s credit report, this should give a person a reason to think twice. No one is allowed to remove correct and current information from a person’s credit report; not the person and not a company. For example, a person should not pay for a service that claims they can remove bankruptcy from their credit report.
How to find a good company
Though there are scams out there, there are also reputable companies willing to help a person improve their credit score. It is important for a person to do their homework when it comes to finding a good company to help them improve their credit score. Researching the company before a person goes to visit is a great way to find out some essential information. A person can check the Better Business Bureau to find out if the company has received any complaints from consumers. They can also check with their state attorney general’s office or other state consumer agencies to find out if there are any pending legal investigations concerning the particular company.
A person should also know their rights. A reputable credit repair services should follow certain guidelines that come from the Credit Repair Organizations Act. These guidelines are in place to help protect consumers. By receiving an explanation of these rights before a person signs a contract they can feel safer about receiving service from a particular company. A contract like this should include the payment terms for the service that is to be received (including the total cost), how long it will take to achieve the results of the service, a detailed description of the services that are going to be performed, any guarantees that the company is offering, and the company’s name and business address.
A person should also remember that there is a grace period. During this time the company cannot perform any services until the person signs a written contract and has completed a three-day waiting period. The contract can be cancelled by the person any time during this period without paying any fees.