Credit Repair Companies - What Consumers Need to Know about Them
Of course there are a few good credit repair companies out there. Just like any business, there are good ones and bad ones. However, since credit repair companies deal with people who are a bit vulnerable and down on their luck, they tend to attract the "used car salesman" type of people to do their sales. This is unfortunate to say the least because credit repair really does work and there is no reason to get taken advantage of by an unscrupulous service provider. Too often their objective is more to make money instead of trying to help you.
Some time ago when I was doing some research for a website I was building, I actually called a couple credit repair companies to see how I would be treated. I didn't need credit repair, but I knew a lot about it. I pretended to be a person needing credit repair and gave them a made-up (but realistic) story about my situation. At first the guy was nice, but as I asked more questions, he started to get a bit rude and eventually ended up all but calling me an idiot. It was almost funny on one hand. On the other hand it was pretty sad, as I am sure there are many actual consumers who have been maltreated by this guy hoping first to make a buck rather than hoping to help out his caller.
Now, I'm certainly not saying that people should not earn a profit for providing a service. But I can tell you from experience that if you set out first to make money, you won't do as well as you would if you set out to help people. Isn't that the golden rule of business? I think so.
So how do you weed out so-called credit repair services? How can you tell who to work with? Here are some general tips that should help you pick through the bunch:
- Look for someone local so you can physically see them and make sure you are comfortable with them as a person.
- Work with someone local that has established a name.
- Work with someone local because you can go to their office to keep them accountable.
- Watch out for unrealistic claims - if they claim to be able to get rid of things like debts you actually owe, you might want to go elsewhere. If they are really only trying to 'sell' you on their service, then you might want to look elsewhere.
- If their fees are over $600 - $800, you should look elsewhere. Credit repair is not very difficult. Most companies use credit repair software to create the credit repair letters and it takes them very little time. It is mostly data entry that dumps into form letters that they mail out or ask you to mail out.
- Consider doing self credit repair, which basically means taking a little extra time to do what credit repair companies would do, but at no cost to you.
Good luck!
Some time ago when I was doing some research for a website I was building, I actually called a couple credit repair companies to see how I would be treated. I didn't need credit repair, but I knew a lot about it. I pretended to be a person needing credit repair and gave them a made-up (but realistic) story about my situation. At first the guy was nice, but as I asked more questions, he started to get a bit rude and eventually ended up all but calling me an idiot. It was almost funny on one hand. On the other hand it was pretty sad, as I am sure there are many actual consumers who have been maltreated by this guy hoping first to make a buck rather than hoping to help out his caller.
Now, I'm certainly not saying that people should not earn a profit for providing a service. But I can tell you from experience that if you set out first to make money, you won't do as well as you would if you set out to help people. Isn't that the golden rule of business? I think so.
So how do you weed out so-called credit repair services? How can you tell who to work with? Here are some general tips that should help you pick through the bunch:
- Look for someone local so you can physically see them and make sure you are comfortable with them as a person.
- Work with someone local that has established a name.
- Work with someone local because you can go to their office to keep them accountable.
- Watch out for unrealistic claims - if they claim to be able to get rid of things like debts you actually owe, you might want to go elsewhere. If they are really only trying to 'sell' you on their service, then you might want to look elsewhere.
- If their fees are over $600 - $800, you should look elsewhere. Credit repair is not very difficult. Most companies use credit repair software to create the credit repair letters and it takes them very little time. It is mostly data entry that dumps into form letters that they mail out or ask you to mail out.
- Consider doing self credit repair, which basically means taking a little extra time to do what credit repair companies would do, but at no cost to you.
Good luck!
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