Credit service companies (CSCs), offer financial services to people who may not otherwise be able to access traditional banking. Often, these companies specialize in providing loans to individuals who are unable to qualify for a traditional loan. This article reviews the top stocks in this field. These companies are gaining popularity due to the high demand for their services.
Credit service companies should follow the CROA guidelines
The CROA provides guidelines to protect consumers against misleading and deceptive business practices and advertising. These guidelines for credit service companies include providing a full disclosure before accepting a contract, not misleading consumers about the service's outcome, and disclosing any fees up front. The guidelines also include penalties and procedures for reporting non-compliance.
If you suspect your credit service company is violating the CROA guidelines, you can file a lawsuit. You can sue the credit repair company for actual and punitive damages.
Credit repair services at a cost
Although credit repair services offered by credit service providers may seem costly to some, the long-term savings can be significant. You can save thousands of dollars on interest and fees by paying a monthly fee for credit repairs services. A good credit history will improve your chances of being approved for loans and credit cards.
Although the initial charge for credit repair services can vary, most companies charge a set-up fee of $15 to $200. This fee covers the initial set up and can include gathering personal information as well as establishing a strategy for improving your credit score. After paying the initial setup fee the company can't charge you again unless it can prove you have received the services requested.
Credit repair companies may offer to resolve disputes
You should review the company's dispute policies when searching for credit repair services. You should ask them how many disputes they will provide per month and how many you will need to erase negative information from your credit report. Some companies allow unlimited dispute per billing cycle. Others permit 15 disputes every three days. The package you choose determines the number of disputes allowed each month.
A credit repair company will dispute inaccurate items on your credit report with the major credit bureaus. These errors can include duplicate accounts, bankruptcies, and more. These items may be disputable by the credit reporting agency. They will then investigate them, and take them off your credit file. Credit repair companies often keep track of disputes and send updates.
Choosing a credit repair company
You should thoroughly research the reputation of a credit repair business before you make a decision. A well-respected company will have a team that includes accountants, attorneys, and any other professional. Also, make sure you have a written contract detailing the services and expected results. A credit repair company that is highly regarded will offer excellent customer service.
A good credit repair company will protect your identity and privacy. They will not require upfront payments, and they will often offer monthly payment plans. Ask for a money back guarantee if you are not sure. Some companies may claim to remove negative information completely from your credit reports, but you should be wary of such promises.