Tips for working with a credit repair agencies

If you decide to use a credit repair agency here are a few guidelines. Not all agencies are the same keep in mind so some of these tips may apply to your situation and some may not. I’m writing this with a client in mind who went to a local credit repair agency she found on craigslist. They weren’t a law firm, just a mother and daughter that claimed to be able to help 95% of their customers remove all their negative items. Of course it was all nonesense and the items they did get removed my client could have removed herself by writing to the credit reporting agencies. So with that in mind, here are some tips for working with that sort of credit repair agency:

  1. Are they results based? Do you pay them only if they succeed or do they expect payment even if they don’t do much to improve your report.
  2. Clearly have in mind what you expect for them to do and GET IT IN WRITING
  3. Don’t pay up front if you can help it. Just like you don’t pay home contractors upfront, don’t pay them either, make them EARN their money
  4. Ask them about your 3 day right to change your mind. Keep in mind not all states have a 3 day right of rescission but there ia s FEDERAL law that states any “for profit” credit repair agencies give you a full list of your rights, a very detailed contract and 3 days to cancel. This DOES NOT apply to non profit organizations.
  5. Ask them for references and CALL them. Try to see if there are any similarities in their stories, some people are not above using relatives to make it seem like they have had a lot of clients
  6. Try to be very specific in your contract with them. Are you hiring them to remove a charged off item, but all they do is get a few late payments removed. The pricing should be A LOT different.

Always keep in mind that anything these companies can do for you, you can do for yourself!


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2010

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