If you have a large amount of debt or a poor payment history that has led to bad credit, you may want to work with a credit repair service. Since you’ll want to do business with the best credit repair companies so that you can boost your credit score as quickly as possible, here’s what to look for when comparing different services.
Personalized Repayment Plans
When you’re working with a credit repair service, you’ll want one that has counselors that are trained and certified and will help you create a debt repayment plan. The plan should be tailored to your income and debts, and it should also be based on what will work for you. If you’re looking to boost your credit score quickly, it is probably better for you to focus on smaller debts that are easier to get out of the way quickly.
On the other hand, if you’re more interested in paying the least amount of money to get out of debt, you’ll want to take out high-interest debts first. The sign of a good agency is a willingness to spend the time with you to figure out a repayment plan that you’ll be able to stick to and match your goals.
Negotiate With Creditors On Your Behalf
If you’re trying to get out of debt quickly, you may also want to choose an agency that will help you to work with creditors to reduce your debt or make it easier to get out of debt. In many cases, credit card companies and debt collection agencies are willing to make accommodations if it will increase their chances of getting paid back.
Many lenders are open to reducing interest rates, waiving late or overcharge fees and even reducing the total amount owed. Some creditors are willing to take a lump sum payment that is a fraction of what you owe them. The best credit repair companies are comfortable with working as a go-between with credit card companies to help you arrange for these debt relief options.
Can Provide Government Mandated Bankruptcy Counseling
If you’re strongly considering bankruptcy, you should make sure that you choose a credit relief service that is approved by the Department of Justice to provide pre-bankruptcy counseling. Before you are eligible to file for bankruptcy, you must complete a course in credit counseling, and you may also be required to submit your debt repayment plan to the court depending on the type of bankruptcy you file for.
No Money Required Upfront
Reliable and creditable credit repair services are open about their fees and services and do not require money up front. Almost all credit repair companies charge some sort of fees, although they may be reduced if you are unable to pay the full amount, and they should provide a fee schedule to you that fully details the types of charges you can expect.
You may be expected to make a payment for services as soon as they are completed, but there should be no fees required before any services are performed. Any fees that you are expected to pay when services are rendered should also be explained to you before the service is performed.
Won’t Make Promises They Can’t Keep
Reputable companies can help you get out of debt faster than you might be able to on your own, and they may be able to help you work with creditors to make it easier for you to boost your credit rating. However, this process often takes time, and if you have a large amount of debt, it may take years to completely pay back all that you owe.
If credit repair companies say that they can help you eliminate debt in just a few weeks or that they can stop things like wage garnishments or judgments, they’re not being honest. Judgments, liens and garnishments must be resolved through the court system or by filing for bankruptcy; it is not something that can be handled by credit repair companies.