There are many companies that offer credit repair services and for consumers, deciding which company to choose can be confusing. It’s important to remember that if you will seek financial advice from a counsellor, you may have to reveal some personal information. Obviously, seeking help from the wrong source can be dangerous and can even lead to more serious problems.
How can you distinguish a legal and ethical credit repair service from a long list of agencies in the market? Consider the following tips:
Check the BBB. The Better Business Bureau gives an overall rating of different companies in the US.
Know the credit repair process. Turning to a credit counselling agency for help does not mean you will not need to do any work.
Know your consumer rights. You should be well aware of your rights as a borrower.
Say no to upfront payment. If a credit counselling agency asks for an upfront payment before providing assistance, then you are most likely dealing with an illegal company.
Make sure it’s really non-profit. Some credit repair agencies or organizations claim to be non-profit when in truth, they are not even licensed.
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