What is a credit repair company?
According to the credit repair organization act, a credit repair company performs various services that aim to improve the credit reports of its customers. They are considered organizations working to earn profit margins because they charge their customers a fee for all the services provided by them.
How does a credit repair company work?
A credit card company includes various steps to be taken to improve the credit report of a person efficiently. Here are a few initial steps taken bycredit repair companies when a person hires them:
It begins with a free consultation or evaluation. The companies pull out a person’s credit report from the 3 primary credit bureaus and then review them.
- It helps them to decide whether or not they will help the person.
- Then they will figure out the disputed needs and might ask the person for his documentation supporting all the disputed items.
- Then the company prepares the disputes and files a different dispute with every agency for every disputed item.
- The process ends with negotiation with creditors.
Verification of a credit repair company
- Search the company’s records on BBB that will help you review the company in complaints, questions, resolved complaints, and background information.
- Refer to the website of the consumer financial protection bureau for finding complaints.
- You might also perform a search to find various company reviews from customers that have previously used their services.
How does credit repair work? We hope you are clear with every aspect concerning this question by now.