Regrettably, credit repair companies have a reputation similar to dentists; no one relishes the thought of someone tampering with them, and they abhor dealing with them. The truth is that anyone with a heartbeat and persuasive abilities can establish a credit repair company, which is why you'll find credit repair firms as prevalent as McDonald’s. As a veteran of the credit repair industry for over a decade and as the owner of one of the largest credit repair firms in the country, I can attest that our industry is scrutinized, and a lot of it is well-deserved.
Bad credit is an epidemic, and it's growing at an alarming rate. The growing number of credit repair companies cropping up is an indication of the numerous choices consumers have, which implies that due diligence is critical to avoid falling prey to fraudulent firms.
As the owner of a credit repair business, I've had the privilege of serving more than 20,000 clients and transforming their lives. In turn, I believe it's important to reciprocate by offering transparency and clarity on how the credit repair industry operates and equipping you with the necessary tools to make the right decision when choosing a credit repair firm.
Table of Contents
How to Find the Best Credit Repair Company in Tempe
Different Types of Credit Repair Companies in Tempe, AZ
The Credit Repair Process in Tempe
Credit Repair is Not the Only Solution
Free Credit Repair Services in Tempe
Helpful Tips for Fixing Credit
How to Find the Best Credit Repair Company in Tempe
When it comes to credit repair, people often wonder about the best credit repair companies, but it's crucial to do your research before hiring one. While online reviews can be helpful, they are not always reliable, which is why due diligence is essential. As a credit repair expert, I recommend you make a list of candidates you're interested in working with and follow the steps below to choose the best option for you.
Make a list
Make a list of companies in your area with a good or acceptable Google review rating that is close to your home. An established company will usually have a website that's been online for at least three years.
Check their reputation
Check the reputation of the companies by going through their reviews on Google. Make sure they have enough reviews to avoid being tricked by fake Google reviews.
Give them a call
Most credit repair companies do not answer the phone during business hours, which can be a sign of their ability to handle your business. When calling, ask a few questions to get more clarity on the type of business you'll be working with, such as how long they've been in business, whether they're licensed and bonded if they have a physical office if they offer a free consultation, their fees, and the average processing time.
By doing your analysis and asking the right questions, you'll be able to determine the least expensive company that will deliver the most effective service.
Different Types of Credit Repair Companies in Tempe, AZ
In the United States, there are more than one million active credit repair and financial service companies to choose from, making it difficult to determine between an experienced and non-experienced agency. Understanding how credit repair works is vital to choosing the right company for yourself, and here are the three different types to help you make a better-informed decision.
Flat fee companies
Flat-fee credit repair companies are the fastest and most cost-effective way to repair your credit. They typically only bill for the accounts they dispute, and you pay a one-time fee for this service. As they have an incentive to complete your credit repair quickly, most flat-fee services are usually faster. These companies will provide you with a consultation, examine your credit reports to determine whether they can help, and then quote you a price based on those accounts. Flat-fee services fit those who want a fast turnaround time, just like mortgage companies who are looking for a credit repair company that charges a flat fee.
Monthly fee companies
The majority of credit repair companies charge monthly fees. However, most companies using this model don't examine your credit report, so it is always best to question how they determine if they can help you. Although this type of structure doesn't fit all clients, monthly fee companies have no incentive to fix your credit fast. They usually only dispute a few items at a time, which makes the process time-consuming and expensive. Monthly fees can add up over time and make the model very expensive in the long run.
Pay for Delete
Fewer companies offer this model, but it offers an interesting and enticing way to pay for credit repair. In this model, pay only for results, putting pressure on the credit repair company to perform. This relief model appears appealing to many people. However, customers must understand their fee structure, as many companies charge higher fees for every item removed. It is important to ask the company directly what the fee would be if they removed all accounts from a credit report.
In conclusion, we recommend choosing a flat-fee company for faster results and cost-effectiveness. It is essential to research and calculate each option to find the best credit repair company for you.
The Credit Repair Process in Tempe
Getting different answers about the credit repair process is common due to a lot of outdated or incorrect advice out there. The credit repair industry, with its constantly evolving nature, makes it even more challenging. Furthermore, credit reporting agencies intentionally put processes in place to deter consumers from using effective dispute methods. Thus, staying up-to-date with all the changes becomes even more imperative for optimal results.
Let's Talk about the Process
The process of disputing all negative or derogatory accounts with "not mine disputes" was popular among users in 2015. Though it produced immediate results, it was short-lived when the same accounts reappeared after the secondary legal reinvestigation process. The credit reporting agencies countered this with processes like e-OSCAR, making dispute letters increasingly ineffective. Today, using new and effective dispute tactics has become essential to getting what you want on your credit report.
The New, Effective Credit Repair Process
The following steps can help you contest the validity of any account on your credit report effectively. It starts with requesting proof of account validation from the data furnisher (creditor or collection agency). Ensure that the account belongs to you and is valid. If an error is found, request that it be corrected or deleted with proof.
What Account Documentation Should I Ask For?
The type of documentation to request for account validation depends on the originally authorized loan. You can inquire as a non-customer or do a quick Google search. Next, a blog on this topic will be posted soon for easy access to all required documents.
Credit Repair is Not the Only Solution
When it comes to personal credit, your financial situation is what drives your credit score. Such a premise makes sense when considering the number of Americans struggling with credit issues. Much like the stock market, credit scores fluctuate based on one’s financial situation. Credit repair is one of several tools that can resolve derogatory accounts on your credit report, but it is not the ultimate solution. Sustainable credit is the ultimate goal to ensure that your credit score remains robust, even during economic recessions or job losses. Therefore, before investing in credit repair, focus on fixing your personal finances. Such steps include paying all your accounts on time, paying down credit card balances, and minimizing credit card usage. While fixing your finances may take time, it’s the surest way to ensure sustainable credit.
Personal Finances Come First
Having good credit is ideal, but having sustainable credit is even better. Sustainable credit can only happen if you can maintain your personal finances and keep them in check. If you cannot maintain your finances, your credit score will eventually suffer. Rather than prioritizing credit repair over your finances, work on paying down any outstanding debts, paying your accounts on time, and reducing credit card usage. By prioritizing your finances, you will ensure that your credit score remains healthy, and you will face fewer large decreases.
The Credit Repair Endless Cycle
Engaging in credit repair without fixing your finances is a cycle that never ends. Repeat offenders are, therefore, a huge problem in the credit repair industry. Such clients require credit repair services every six months, failing to address the root of their financial problems. The key to fixing your credit score once and for all is focusing on getting your finances in line. While it is possible to focus on both fixing your credit and your finances simultaneously, most people don't have enough finances to do so. By prioritizing your finances first, you will ensure that once you fix your credit score, it will remain strong for good.
Free Credit Repair Services in Tempe
A common inquiry involving credit is how to repair it for free. The reality is, individuals can DIY credit repair with only the cost of paper and mail. There are blogs and websites that provide step-by-step approaches on how to repair credit like a pro, but the process could be time-consuming. People might not want to dedicate the time and effort required to undertake the task. However, if such individuals are serious about improving their credit score and are willing to devote 2-4 hours a month, they might want to read blog posts on credit repair services like the pros. Engaging a professional credit repair firm is an alternative for those uninterested in self-repair. Consider writing a testimonial or review in exchange for free credit repair. Many novice credit repair companies may be interested in this trade-off, and searching through Facebook credit repair groups could yield positive results. Posting a message looking for "a new credit repair business owner who would be willing to help me with some credit concerns in exchange for an immensely detailed 5-star review" might be useful. You may come across people who do not agree, but it should not be a problem getting someone to provide free credit repair.
Helpful Tips for Fixing Credit
It's important to conduct some research when looking for the best credit repair company that could help you fix your credit score for the long term. This might seem like a daunting task that involves approaching various credit repair firms, but it's essential to ensure that you don't end up wasting your precious time and money. Moreover, it's vital to work on your personal finances, as they're the root cause of most credit issues. Many people end up squandering their hard-earned income to repair their credit and, later, complain online about the unreliability of credit repair or brand it as a scam. The fact is that poor spending habits, combined with a lack of saving discipline, are often responsible for tarnished credit records. It's worth noting that credit repair services can work, as evidenced by the transformation of over 20,000 of my client's lives. The restoration process starts with you, as you're required to set your finances in order before credit repair can be an easy, fast, and sustainable solution. Remember, don't lose hope; you can do this!