Assessing Credit Repair Companies

You hear so much about credit repair companies that if you're having credit problems you are very tempted to seek their help to improve your credit report. However, making a good choice may not be so easy, because you will find that evaluating such companies in not such an easy task! Because they are service oriented, there's no physical product to evaluate, and the trial-and-error method is ... well, completely out of the question!

Here are three points that you must consider before making a decision. These indicators will also keep you safe from being ripped off by less than reputable credit repair companies whose goal is to relieve you of your money, not your problems.

1. Honest Credit Repair Companies Are Affiliated With Organizations

Just as any legitimate business, a professional credit repair agency will affiliate itself with reputable organizations such as the BBB (Better Business Bureau) or the ECRA (Ethical Credit Repair Alliance). The affiliation would have these companies abide by certain business codes, that provides protection to you the consumer.

Determine to which organizations the company you are considering belongs to. What are they? Do not stop at finding out what affiliations they have - research a bit further and check whether these regulatory bodies are indeed what they claim to be. Research on the Net and get the complete picture.

2. Reputable Credit Repair Companies Have Many Satisfied Customers

It's always expected that a good local credit repair agency would have a fair amount of verbal positive feedback from local people. This is an excellent sign that this company delivers on its promises. However, do not trust them with improving your credit report just on the basis of hearsay.

Ask them to give you the the name of some satisfied customers who they worked with satisfactorily and then follow up with a visit. Most people will be happy to discuss their experience with the company. Ask them about their level of satisfaction, and whether they would recommend the company.

3. Above-Board Credit Repair Companies Do Not Sell You Shortcuts

There are no shortcuts in the credit repair business. Your credit score is not going to improve overnight, nor can you make your bad credit disappear.

Be wary about credit repair companies that promise an overnight makeover. It is likely that they are lying or that they are using illegal means. Don't be misled because this could end very ugly for you. Stick to legitimate methods to improve your credit rating and in the end you will be the winner.

As you can see, it is not too hard to choose the right one from among the many credit repair companies. Just remember that it's better to be cautious, than to act rashly and then regret it later.