When it comes to Credit Repair, its Buyer Beware

By: Jonochs
Making a decision purely on price when it comes to choosing a credit repair company can be a serious mistake that could cost you your money and time. If you are serious about repairing your credit and trying to find the right company, read on...

It is easy not to realize that all those credit repair companies that charge on a monthly service fee basis are only going to do a very small amount of work each month. This method of billing allows virtually anyone to start and represent themselves as a credit repair expert, and not have any responsibility to produce results. If you are like the average person, you most likely have an average of 4-12 negative items on each of your credit reports. If you are only paying $39 - $79 for a monthly service fee, the credit repair company is only going to work on a couple items at a time. Keep in mind also that with the monthly service fee model, the credit repair company is actually incentivized to take as long as possible to clean up your credit. You may easily end up paying far more, with fewer deletions, than you would have with a simple flat-rate credit repair program.

With a flat-rate credit repair payment model, the motivation is to get your credit cleaned up as quickly as possible, and isn't that exactly what most people want? In years in the industry, I have never come across a client who wanted to clean up their credit slowly. Excercise caution when choosing a credit repair company, as they are absolutely not all created equally? The first thing you should do is call and see what kind of service you receive before you pay them anything. Are they willing to talk to you about your credit and their program, or do that simply push you into enrollment? You should also check out their record of complaints. If the company has been in business for more than a few years and has not been providing a acceptable service, you will read about it on the Internet. Just go to Google and type in "[company name] complaints".

Warnings have been posted by The Federal Trade Commission to steer consumers away from credit repair services. The reason for this is that in recent years, they have received a huge number of complaints about companies that receive money, fail to provide any real results. Since the FTC cannot recommend any particular company, their policy is to simply tell everyone to stay away. Many companies have since adopted the model of charging based on a monthly service fee instead of charging for the credit repair itself. They have found it to be easy money, since most people will sign up for this type of service and forget about it. A low monthly fee is easy to forget about, and most credit repair company are banking that you will forget.

I cannot tell you how many times a week we get calls from people who have been a client of a monthly service fee credit repair program for more than one year, and have only seen a couple of improvements on their credit reports. I personally find this appalling, and so should you.

Hopefully this will give you some useful information that will help you in your quest for the right credit repair company.
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