Similar to dentists, credit repair companies have a less-than-stellar reputation. People generally prefer to avoid them and dislike dealing with them. Anyone with the ability to persuade and a heartbeat can easily open up a credit repair business, leading to an over-saturation of credit repair companies being likened to the abundance of McDonald's restaurants on every corner. Being a part of the credit repair industry for 15 years as the founder of one of the largest credit repair companies in the nation, I can vouch for the fact that credit repair has rightfully faced scrutiny.Poor credit is a widespread problem that is only getting worse, and the rise of credit repair companies in the market shows that there are now many options for those looking to seek help with their poor credit scores. However, as a consumer, it is important to conduct thorough research to ensure that you don't get taken advantage of. As a credit repair business owner, I take great pride in having assisted over 20,000 individuals in changing their lives, and I am now giving back by offering transparency and clarity on how the credit repair industry operates. This way, you will have the necessary tools to help you make the most informed decision when choosing a credit repair company.
Table of Contents
How to Find the Best Credit Repair Company in Honolulu
Different Credit Repair Options in Honolulu: Understanding the Three Types of Companies
The Credit Repair Process in Honolulu
Importance of Personal Finances in Credit Sustainability
Free Credit Repair in Honolulu
Tips for Finding a Reliable Credit Repair Company
How to Find the Best Credit Repair Company in Honolulu
When clients ask me about the best credit repair company, I advise them to do their due diligence and research. Utilizing online reviews can be helpful but not always reliable. Rather than pushing them toward my company, I suggest they make a list of prospective companies. Here are some steps to take when finding the best credit repair company in Honolulu:
1. Start By Making A List
Research and gather a list of credit repair companies close to your location. This enables you to have easy access to their office, knowing that you can show up unannounced any time you want.
2. Check For Reputation
Check the online reputation of each company on your list. An established company will have a website that has been online for at least three years. Ensure that they have enough reviews, and take the time to scan through the reviews to make sure they are legitimate and not fake.
3. Call Them
Contact the companies on your shortlist, and ask them the following set of questions to get more clarity on the type of business you will be working with:
A. How long have you been in business?B. Do you have a physical office where I can come in and meet the team?C. Do you offer a free consultation?D. Do you offer a money-back guarantee?E. What is your fee structure like? Do you charge a flat fee or a monthly fee?F. How long does the average process take?
Following these steps allows you to make informed decisions and choose the best credit repair company in Honolulu that aligns with your needs and budget.
Different Credit Repair Options in Honolulu: Understanding the Three Types of Companies
With over 1 million credit repair and financial service companies operating in the US, you have plenty of options to choose from. However, this abundance of choices can make it challenging to distinguish between experienced and non-experienced firms. To help you understand the credit repair process, I'll explain the three types of credit repair companies you'll come across.
Flat fee companies
Only about 5% of companies operate under this structure, but it's the most effective in terms of speed and cost-efficiency. Flat fee companies typically charge you for the accounts they dispute, and you pay a one-time fee for the service. This incentivizes the firm to complete your repair process as quickly as possible. By analyzing your credit reports, the credit repair company can determine if they can help you and provide a quote based on the accounts that need attention. Many mortgage companies prefer partnering with flat fee credit repair providers, making it an excellent option for faster pre-approval processing.
Monthly fee companies
Most credit repair companies work under this model, which charges clients every month, regardless of the results. This model doesn't involve a thorough examination of your credit report by the company, which questions their ability to help you. Besides, credit repair companies going with this method may take more time to fix your credit scores as the program drags on, resulting in a higher accumulation of fees. Having only a few disputes at a time can aggravate the situation for clients seeking faster results, making it expensive over time.
Pay for Delete
This model is less frequent, and it holds credit repair companies accountable by only paying them for results. However, it can be costly for clients. Companies adopting this model may charge an initial fee coupled with a higher price they tag to each record removed. Therefore, it's essential to ensure that you have a clear understanding of each company's fee structure so you can make an informed decision.
Overall, the flat fee model stands out as a beneficial option. But I urge you to carry out thorough research and calculations to determine the best fit for you.
The Credit Repair Process in Honolulu
When it comes to credit repair in Honolulu, there's a lot of advice out there, but much of it is outdated or not useful. Our industry is constantly evolving, and on top of that, regulations and law changes make things even more complicated. Credit reporting agencies have processes and procedures in place to limit your ability to dispute inaccuracies effectively. At our company, we keep up with all the changes to ensure we provide the best results to our clients.
Exploring the Process
When credit repair started gaining popularity in 2015, some people found success disputing negative and derogatory accounts through a process called “not mine disputes.†However, credit reporting agencies eventually refined their processes, making it much harder for people to see significant results through the dispute process. Nowadays, you need unique and effective dispute tactics to be successful.
An Effective Process for Credit Repair
While there's no secret to the credit repair process, many people don’t understand the steps or aren’t using them effectively. Know that it is your legal right to contest the validity of any account on your credit report. You need to request that the data furnisher provides proof of the account, including original signed documents or payment ledgers. Then determine if there's an error in the account or how it's being reported. If so, use any proof to request that it be fixed or deleted.
What Documentation to Request?
If you're unsure of what documents to request, call the lender as a non-customer and ask what documents are required to authorize a new loan. A quick Google search can provide additional information. We'll soon post a blog on our website with a list of documents you can request.
Importance of Personal Finances in Credit Sustainability
1. What Drives Your Credit Score?
Your personal finances drive your credit score. Credit issues are common because of this reason. Personal credit scores fluctuate just like the stock market. Credit repair is one tool that can fix derogatory accounts on your credit report, but it is not a permanent solution.
2. Personal Finances: The Key to Sustainable Credit
Focus on getting your personal finances in line before investing in credit repair. Sustainable credit means having control over personal finances to keep credit strength stable regardless of economic fluctuations. Prioritize paying revolving credit balances and accounts on time. Stop using credit cards often. Keeping a small balance on your credit card will avoid account closure in emergency situations. This financial stabilization will lead to healthy credit scores.
3. Endless Cycle of Credit Repair
Credit repair becomes an endless cycle when you don't focus on filing your financial situation. Pouring money into credit repair instead of making payments to reduce debt increases the likelihood of repeat credit repair attempts. Although fixing personal finances and credit simultaneously is the ideal approach, most people cannot achieve it. It is crucial to get personal finances in line to achieve credit sustainability for good.
Free Credit Repair in Honolulu
This is a commonly asked question: "Is there a way I can repair my credit for free?" The answer is yes; you can fix your credit for free by doing the services on your own, or at least for the cost of paper and postage. I have multiple blog posts in which I have detailed the steps to repair your credit like the professionals. However, anything that is free usually requires a lot of time. You have the legal right to dispute your credit report at any time, but most people are either not willing to put in the effort or do not have the time. For those who do not want to repair their credit themselves, I highly recommend paying a professional credit repair company to do it for you. If you are serious about dedicating 2-4 hours a month to dispute your credit report for free, take a look at my blog post "Repair Your Credit like the Pros."
Leave a testimonial or review
Initially, I used to offer free credit repair to random people in exchange for testimonials or reviews when I started in the credit repair industry. I did not have any reviews or testimonials when I began doing credit repair in the early 2000s, so I would ask individuals to allow me to fix their credit in exchange for a testimonial or review, and in return, they received free credit repair. While it cost me money to send out their disputes, the overall value I received from the review was exponentially higher than the negligible cost of doing credit repair. There are plenty of newer credit repair companies available that would do the same. My suggestion is to look for "Credit Repair" Facebook groups in Honolulu, join them, and create a similar post such as:
"I am looking for a new credit repair business owner in Honolulu who would be able to assist me with some credit concerns in exchange for a highly detailed 5-star review."
You may encounter some critics, but it should not be difficult to find someone to do your credit repair for free.
Tips for Finding a Reliable Credit Repair Company
It is imperative to conduct thorough research when you are seeking a reputable credit repair company that will enable you to resolve your credit issues once and for all. Although it may seem time-consuming, this step is critical to ensure that you do not waste your resources.
In addition to hiring a credit repair professional, you should work on rectifying poor financial management, which is frequently the root cause of most individuals' difficulties. Often people squander their paychecks attempting to fix their credit and then blame the credit repair business for not succeeding. The actual issue is that they have poor spending and saving habits that make it tough for them to keep their credit in good standing.
Credit repair is unquestionably beneficial, and it can transform an individual's life, but it requires commitment on your part, and you must get your finances under control before finding an effective, immediate, and long-term credit repair solution. You have the power, so don't lose hope!