If you Google “Good credit repair firm,” you’ll find that 41,900,000 results pop up, aside from the annoying ubiquitous ads and paid SEO placement.
With just shy of 42 million responses, how the heck is a consumer supposed to know which credit repair firm to trust, who is reliable, and what’s an outright scam?!
It would be nearly impossible to decipher, especially since there are a whole lot of credit repair firms who spend 99% of their time, focus, and work on advertising (just to take your money), and only 1% of their effort on actually helping you and doing a great job.
It all makes you want to throw up your hands in frustration – and completely give up, getting no help at all and just living with a bad credit score (and losing money).
Luckily, Blue Water Credit will give you some tips and techniques today how to weed out a good credit repair company from the other 99%. Of course, we want to earn your business, as Blue Water Credit is the nation’s leader in legal, ethical, and highly effective credit repair.
But our focus today is on empowering you through education so YOU can make the best choice. (And by the way, you do not need to hire someone to try and fix your credit – you can try to do it yourself.)
- Reputation and Track Record:
Start your search by examining the reputation and track record of potential credit repair firms. Look for well-established companies with a solid history of success in the industry. Research online reviews, testimonials, and ratings to gain insights into their past clients’ experiences.
By the way, did you know that Blue Water Credit is one of the very few fully accredited credit repair firms with an A+ rating with the Better Business Bureau in all of California?
- Compliance with Laws and Regulations:
Ensure that any credit repair firm you consider is fully compliant with the laws and regulations governing the credit repair industry. Legitimate firms adhere to the guidelines set by the Credit Repair Organizations Act (CROA), the Federal Trade Commission (FTC), and other relevant regulations. Verify their licensing and accreditation to ensure you are dealing with a reputable entity.
Find out more here.
Here is some info from the DOJ’s Credit Services Organization Registration Application. There are also state and federal regulations depending on where you live and what company you want to hire.
Here is a list of registered companies in California.
- Transparent and Clear Processes:
A trustworthy credit repair firm will have a transparent and clear process for assisting you in improving your credit score. They should be able to explain their strategies, the specific steps they will take, and the estimated timeline for achieving results.
Avoid companies that make unrealistic promises or provide vague explanations of their methods. This is a big one, as many firms “sell you the sunshine” just to get your business (and money) but then often disappoint with delivering those results.
If it sounds too good to be true, it probably is!
If you are promised a specific increase in your credit score, guaranteed results or that your credit can be repaired quickly, no one can do this.
- Personalized Approach:
Each individual’s credit situation is unique, and an effective credit repair firm recognizes this. Look for a company that offers personalized solutions tailored to your specific needs. Avoid firms that provide a one-size-fits-all approach, as it may not address your unique credit challenges effectively.
An important question to ask is actually who will be handling your case if you do sign up, and how many files are assigned to each credit representative. (A ratio that’s too high means these people are overworked with little time/attention going into each individual case).
- Fee Structure and Pricing:
Credit repair firms charge various fees for their services, and it’s essential to have a clear understanding of their fee structure. Beware of companies that demand upfront payments or guarantee specific outcomes.
Legitimate firms typically charge after services have been rendered. Compare pricing among multiple firms and choose one that offers fair and competitive rates.
Most importantly, all pricing and fees should be very clear.
And DO NOT work with any firm or sales person who demands payment upfront!
Under the Credit Services Organizations Act, a credit services organization cannot collect payment until they have completed the services they promised to perform. If the Telemarketing Sales Rule applies, the company cannot ask for payment until it has provided you with a credit report that shows the promised results and that report is generated more than 6 months after the results were promised. Don’t pay upfront.
- Education and Empowerment:
A reputable credit repair firm doesn’t just fix your credit; it also empowers you with knowledge and tools to maintain a healthy credit profile in the long run.
Look for companies that offer educational resources, credit counseling, and ongoing support to help you understand credit scoring, mortgage, debt management, budgeting, and other personal finance issues.
Did you know that Blue Water Credit has a fantastic blog that’s updated frequently and focuses on education with free guidebooks for consumers?
- Positive Customer Support:
Excellent customer support is a crucial factor when choosing a credit repair firm. Ensure they have responsive and knowledgeable representatives who are available to address your concerns promptly. The firm should prioritize your satisfaction and provide regular updates on the progress of your credit repair journey.
You can find this through reviews and testimonials. It’s also a good idea to ask a few questions during the process before you sign up, gauging their care and response times.
- Dispute Process and Communication:
Credit repair often involves disputing inaccurate, outdated, or duplicate information on your credit report. So, inquire about the firm’s dispute process and how they communicate with credit bureaus, creditors, and collection agencies on your behalf. A reliable firm should be proactive in providing updates on the progress of your disputes and any changes to your credit report.
- Ethical Practices:
Verify that the credit repair firm you select follows ethical practices. Avoid companies that encourage you to engage in illegal activities or promise to remove accurate negative information from your credit report. Trustworthy firms focus on legitimate methods of improving your credit, such as identifying errors and disputing them with credit bureaus.
- Client Reviews and Testimonials:
Lastly, take the time to read client reviews and testimonials to get a sense of the experiences others have had with the credit repair firm you are considering. Pay attention to feedback regarding the firm’s communication, results achieved, and overall customer satisfaction.
Positive reviews from reputable sources can give you added confidence in your decision.
A GREAT way to find a credit repair firm with a sterling reputation and fantastic results is to ask a mortgage professional or lender. Mortgage pros often lean on credit repair firms to help their clients become home loan ready, but they would never waste their time (or their reputation) with a credit repair firm who doesn’t take amazing care of their shared clients.
For that exact reason, Blue Water Credit is one of the few and best choices for mortgage lenders across the country!
We hope this list helps, and if you ever have questions about improving your credit score, cleaning your report, or just finding a good company to help you, Blue Water Credit offers a no-risk consultation.
Contact us today!