How to Pay Someone to Clean Up Your Credit
- 1). Do some research. Finding a legitimate credit repair company can seem like a grueling task. Running a Google search will yield hundreds of thousands of companies promising to fix your credit. Take the time to call the companies that seem like a best fit for your financial situation. Talking on the phone with a real human being will be a good indicator of whether the company is going to offer true help in cleaning up your credit.
- 2). Read the Better Business Bureau's recommendations for when the time comes to select a credit repair company (See Resources). When choosing a credit repair company, there are a few questions that you should always ask. These questions include: What services do you offer? Where can I obtain free educational materials? What are the fees? Will there be a formal written agreement? Are you licensed to offer services in the state? and, What are the qualifications of your credit counselors? These questions are recommended by the Federal Trade Commission.
- 3). Look for signs that a credit repair company is no good. According to the Federal Trade Commission, some of these signs may include: the company wants you to pay for credit repair services before it provides any services; the company refuses to tell you your rights and what you can do for yourself for free; the company recommends that you do not contact any of the three major national credit reporting companies directly; the company tells you it can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current; the company suggests that you try to invent a "new" credit identity --- and then, a new credit report --- by applying for an Employer Identification Number to use instead of your Social Security number; or company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
- 4). Obtain a copy of the "Consumer Credit File Rights Under State and Federal Law." Credit repair companies are required by law to give clients a copy of this document prior to the signing of any contract.
- 5). Read thoroughly the contract, which should spell out your rights and obligations, prior to signing it.
- 6). Ensure that the contract specifies the payment terms for services, including total cost; a detailed description of the services the company will perform; length of time it will take to achieve the stated result; any guarantees offered by the company; and the company's name and business address.
- 7). Sign the contract only when you are certain that the company is genuine and there to help.
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