How to Pay Someone to Clean Up Your Credit

Those who find themselves struggling to make monthly credit card payments may want to consider paying someone to clean up their credit. Credit repair companies offer services that can do just that. The problem is, the Internet is flooded with scam artist companies offering to repair credit. It is important to be smart when searching for the right company to help repair your credit.

Instructions

1

Do some research. Finding a legitimate credit repair company can seem like a grueling task. Running a Google search will yield hundreds of thousands of companies promising to fix your credit. Take the time to call the companies that seem like a best fit for your financial situation. Talking on the phone with a real human being will be a good indicator of whether the company is going to offer true help in cleaning up your credit.

2

Read the Better Business Bureau's recommendations for when the time comes to select a credit repair company (See Resources). When choosing a credit repair company, there are a few questions that you should always ask. These questions include: What services do you offer? Where can I obtain free educational materials? What are the fees? Will there be a formal written agreement? Are you licensed to offer services in the state? and, What are the qualifications of your credit counselors? These questions are recommended by the Federal Trade Commission.

3

Look for signs that a credit repair company is no good. According to the Federal Trade Commission, some of these signs may include: the company wants you to pay for credit repair services before it provides any services; the company refuses to tell you your rights and what you can do for yourself for free; the company recommends that you do not contact any of the three major national credit reporting companies directly; the company tells you it can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current; the company suggests that you try to invent a "new" credit identity --- and then, a new credit report --- by applying for an Employer Identification Number to use instead of your Social Security number; or company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

4

Obtain a copy of the "Consumer Credit File Rights Under State and Federal Law." Credit repair companies are required by law to give clients a copy of this document prior to the signing of any contract.

5

Read thoroughly the contract, which should spell out your rights and obligations, prior to signing it.

6

Ensure that the contract specifies the payment terms for services, including total cost; a detailed description of the services the company will perform; length of time it will take to achieve the stated result; any guarantees offered by the company; and the company's name and business address.

7

Sign the contract only when you are certain that the company is genuine and there to help.