How to Choose a Good Legal Credit Repair Company

March 6, 2010 No comments

Legal Credit Repair.

Legal credit repair is your right and it is free. That is if you work on cleaning up the negative and inaccurate information that is reporting on your credit report yourself. You just contact the three credit reporting agencies independently and challenge what ever you see as negative and inaccurate information. You can go to http://annualcreditreport.com and get a free copy of your credit report (without a credit score) once a year. You can review your credit and dispute the information that you want to. But if you are unfamiliar with all the laws that protect you and make credit restoration possible you can also choose to work with a professional.

How to Choose a Legal Credit Repair Company to Work With.

Before you begin to work with a company you want to be comfortable that they are professional and effective. The best way to determine that is to get a personal recommendation from someone you know and trust who has worked with them in the past. If you do not have that option, verify the information any credit repair company gives you as to references. Contact the better business bureau and the Attorney General’s office to determine if there are open complaints. Contact any references that the company gives you are any trade associations they may be a part of. I would avoid one man shops or people that do credit repair out of their homes. They may be good but, as a business any thing can come up and effect their work on your behalf.

How Much Do You Pay For Credit Repair.

The law is clear as to when a company can charge and for what services. You should not pay for service in advance. So typically a company will charge a set up fee, which is after they have received and reviewed your initial documentation. Form their the law requires you to have a contract for services. That contract will state how much you pay and for how long. Most contracts are for 12 months. A fair price to pay is no more than $50 to $75 per month per person. You generally get a discount for having a husband and wife on the contract. A fair price for the set up fee is no more than $100 per person. Discounts are standard for the set up fee if a husband and wife are both signing up. Any time you sign a contract for monthly service make sure you have the right to cancel at any time. This is truly the advantage of monthly contract program. Many times it only takes 2 to 3 rounds of disputes which means the total cost of credit repair could be $250 or less. That is a very good deal considering the money you will save and the financing you will have available to you.

Upfront Fees.

Some companies charge you $500 to $1000 or more to begin the credit restoration process. This was usual in the past, but today you can get much more for less. Avoid large upfront fees.

Guarantee.

Many companies guarantee their service. You must understand the guarantee because no company can tell you how much your fico credit score will improve or can they say whether a specific item will come off of your report. Most guarantees are based on the number of items removed over a certain period of time, usually 6 months or more. If you are with a program for 6 months you should have a substantial improvement and many items fall off. Just understand exactly what the warranty is and what the refund policy is.

Choose Your Credit Restoration Company.

From the criteria reviewed above you have enough information to make an informed decision on which credit repair company to choose. If you choose not to do it yourself.

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