Credit Shopper
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…
Most people don’t 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 the flat-rate payment model, the company is motivated to get your credit cleaned up as quickly as possible, and that is what most people are looking for, isn’t it? I have never spoken to a client who wanted to clean up their credit slowly. With all that said, you need to be very careful when choosing the right credit repair company, as they are not all created equally? The first thing you should do is check out their complaints record. If the company has been in business for more than a few years and has not been providing a good service, you will hear about it on the Internet. Just go to Google and type in “[company name] complaints”. If you get more than just a few complaints about the company, you should beware.
Consumers have been warned by The Federal Trade Commission to stay away from credit repair companies, and not to work with any company who charges an up-front fee. The reason for this is that they are tired of getting complaints about credit repair companies that take money and not perform any work. 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 a monthly service fee instead of charging for the credit repair itself. They have found it to be easy money, as most clients will sign up for this type of service and forget about it; leaving the credit repair company to continue receiving payments for a long period of time with no obligation of work.
Several times a week we receive calls from people who have been client’s with a monthly service fee credit repair program. They are very unhappy and have paid in, in come cases, well over a thousand dollars, and often have only seen a handfull of deletions. I personally find this appalling, and you should also.
I hope this information has been useful.
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