Regrettably, credit repair is often associated with the same level of discomfort as visiting the dentist - no one wants to be meddled with or deal with them. Unfortunately, with some persuasion skills and a pulse, anyone can establish a credit repair company. This has led to an overwhelming number of credit repair businesses, making them as common as McDonald's on every street corner. As a veteran of the credit repair industry for over 15 years, I understand the skepticism surrounding our industry, which is mostly valid.
The issue of poor credit is spreading like wildfire, and it's only getting worse. The surge of credit repair companies over the last year illustrates the plethora of available credit repair options, necessitating that customers conduct thorough research to ensure they aren't exploited.
As a credit repair business owner, I've helped over 20,000 people overcome difficult financial situations and witnessed significant positive changes in their lives. As a way of giving back, I want to offer transparency and clarity into the credit repair industry's inner workings. My goal is to equip you with the necessary tools to make an informed decision when engaging in a credit repair business.
Table of Contents
How to Choose the Best Credit Repair Company in Durham City
Distinguishing Credit Repair Companies in Durham: What Sets Them Apart?
The Credit Repair Process in Durham
Credit Repair is not the Final Solution
Free Credit Repair in Durham
My Final Recommendation
How to Choose the Best Credit Repair Company in Durham City
When it comes to credit repair, choosing the right company is crucial. While I could promote my own company, I think it's important that consumers do their own research to truly determine which company is the best option for them. Reviews are a good starting point, but be cautious of fake reviews. It's recommended to create a list of potential companies in your area that have a good online presence and a physical office for easy accessibility. Once you have your list, it's time to make calls and ask important questions to help you analyze and choose the most effective but least expensive company.
Here are a few important questions to consider:
-How long have you been in business? Are you unlicensed and bonded? If so, can I see a copy of your bond?
-Do you have a physical office where I can meet you and your team?
-Do you offer a free consultation?
-Do you offer a money-back guarantee?
-What is your fee structure like? Is it a flat fee or a monthly fee?
-How long does the average process take?
By approaching your search for a credit repair company with a checklist and due diligence, you can feel confident in your decision and ultimately improve your credit score.
Distinguishing Credit Repair Companies in Durham: What Sets Them Apart?
The number of active credit repair and financial services companies in the United States exceeds 1 million, making it challenging to distinguish experienced from inexperienced companies. Identifying the three different types of credit repair companies can be beneficial in comprehending how the credit repair process works.
Flat Fee Companies
Only about 5% of credit repair firms follow the flat fee model, which saves money and promises quick results. The company charges A one-time fee based on the accounts they dispute after scrutinizing your credit report. This structure enables credit repair companies to work faster as they have an incentive to finalize your credit repair as soon as possible. When selecting a credit repair company, consider a flat fee structure that charges only for the accounts disputed.
Monthly Fee Companies
Most companies follow the monthly fee model, which is less efficient and effective as few companies consider reviewing your credit report before disputing errors. The main drawback of this model is the fee that tends to increase when staying longer in the program. This model can get expensive and take much longer since these credit repair companies only dispute a few accounts at a time.
Pay for Delete Companies
Fewer companies offer this model, as it is a little more expensive but offers an enticing way to pay for credit repair. Pay-for-delete companies perform based on a model that only charges for results. The company may say that you only pay for results, but typically it is much more expensive, and they charge per account removed from the credit report. The fee can also be calculated per negative account or per account per bureau, which can soon add up to a lot. You should know the fee structure of the company before undergoing credit repair/fixing.
To review, we always recommend selecting a flat fee company to help fix your credit. The other structures may not be efficient, and it's important to research and carefully examine the different structures before making a decision.
The Credit Repair Process in Durham
When it comes to credit repair, there are a lot of opinions out there, but much of the advice available is outdated or ineffective. Having spent 15 years in this industry, I know that the process is constantly evolving, and changes to regulations and laws mean that nothing stays the same for long. It is important to understand that credit repair is not difficult, but credit reporting agencies do develop processes and procedures to prevent consumers from using effective dispute processes. As such, we stay up-to-date on all the changes to ensure our clients receive the best results.
Let's Talk About the Process
In 2015, the "not mine disputes" approach to disputing negative and derogatory accounts became popular, resulting in immediate success. However, the secondary legal reinvestigation process that followed diminished these results. Today, credit reporting agencies have implemented more refined processes, such as e-OSCAR, to deny frivolous dispute letters, making it difficult for people to achieve significant results through the dispute process. Correcting or deleting items from your credit report becomes challenging without new and unique dispute tactics.
The New, Effective Credit Repair Process
Requesting validation of the accounts on your credit report is the most effective approach. Understanding your legal right to contest the validity of any account on your credit report is crucial. If the data furnisher cannot provide proof of the account, like original signed documents or payment ledgers, you can dispute the account as erroneous. Alternatively, if you can determine an error or inaccuracy in the reporting of the account, you can use any proof you have to dispute the error and request correction or deletion.
What Account Documentation Should I Ask for?
The documentation you need depends on the original loan authorization. If you are unsure of what documents to request, you can ask the creditor or collection agency. Alternatively, a quick Google search can provide more information. We will soon post a blog on this topic to provide you access to all the documents you can request.
Credit Repair is not the Final Solution
Your credit score is determined by your personal finances. This is why credit repair cannot be the only solution to improving your credit score. Credit scores fluctuate based on an individual’s financial situation, like the stock market. Most Americans face credit issues because they do not have full control over their finances. Fixing your finances is key to achieving long-term credit sustainability. Before investing in credit repair, you need to focus on paying off revolving credit balances, paying all accounts on time, and limiting credit card usage. Credit sustainability is achieved by fixing your financial deficit, and your credit score will follow suit. Repeat clients are a problem in the credit repair industry. Focus on organizing your finances first, then invest in credit repair.
Free Credit Repair in Durham
Many individuals may wonder if they can repair their credit for free. The answer is yes. It is possible to fix your credit for no charge or just for the cost of paper and postage by performing the services on your own. However, repairing one's credit by themselves could take a lot of time. There are legal rights to dispute your credit report anytime, anywhere, but most people either don't want to put in the time or just don't have the time. For those who would like to avoid doing credit repair themselves, it is recommended to contract with a professional credit repair company. But for those who would commit around 2-4 hours a month to disputing credit reports freely, there is guidance on repairing credit like professionals in my blog post, “Repair your credit like the pros."
Testimonial or Review
In the past, I used to offer free credit repair in exchange for a testimonial or review to random individuals when I was new in the credit repair industry. Since I did not have any reviews or testimonials when I began doing credit repair in the early 2000s, I contacted people who could allow me to restore their credit in return for a testimonial or review. Although it cost me to hire out work, the total value I got from the review was a lot higher compared to the low cost of doing credit repair. Similarly, many new credit repair companies may be willing to do the same thing as me. My recommendation is to search for "Credit Repair" Facebook groups, join these groups, and post something similar like:
"I'm in search of a new business owner who may be willing to assist me with an in-depth 5-star review in exchange for some credit concerns."
While you may encounter a few critics or haters, you'll be able to find someone to do your credit repair services for free.
My Final Recommendation
Ensure thorough research when seeking the best credit repair company that can assist in permanently fixing your credit. Though it may entail extensive research and reaching out to various credit repair firms, it is essential to ensure that your money and time are well spent. Frequently, improper handling of personal finances is the root cause of poor credit scores. Rather than throwing money at fixing credit scores, individuals should work on their saving and spending habits. Many people who have found credit repair solutions ineffective expose their negative financial practices, making credit repair an easy target for criticism. It is worth noting that credit repair works and over twenty thousand clients have witnessed a significant change. However, it begins with each individual taking control of their finances since credit repair can become a quick, easy, and permanent solution. Remain optimistic; you've got this!