1: Do they have experience with your type of debt?
Different types of debts require different approaches. If you’re unsure whether a credit restoration service has experience with your particular type of debt, it’s important to ask before signing on.
For example, if you have federal student loans or tax debts that aren’t eligible for debt consolidation, then a company that only deals with consumer debts like credit cards probably won’t be able to help you. However, some companies have experience with a wide range of consumer and business-related debts, so look for one if you can.
2: Are their fees flat-rate or calculated by balance?
Although credit restoration companies claim that their services are free, or will only affect your credit score by a small percentage, it’s often not as simple as that. Some companies charge based on how much money you owe, meaning that you could end up paying hundreds of dollars more than what they claimed upfront.
Credit restoration services aren’t legal in every state and while some states have tougher regulations against them than others, some can be quite shady when it comes to charging hidden fees. Make sure you know all of your options before signing a contract with a company like this.
3: How quickly can they provide results?
Asking how quickly a credit restoration service can provide results is a smart question to ask. The goal is not only to improve your credit score but also to reduce interest rates, so you may want to hire someone who offers those services as well. Check if they offer accelerated services and are confident enough in their methods that they don’t need you paying more for faster results.
If they do, it’s probably best not to work with them if you’re on a budget. It might be better to choose someone whose approach doesn’t require an investment of time or money upfront. They should have proven techniques they can use to bring down your score while saving you money. Some companies claim you’ll see an improvement within days or weeks—others say it could take months. Be wary of any business that promises fast results without giving details about how they plan to achieve them, such as explaining which credit reporting agencies will be targeted or what steps will be taken once contact has been made with each agency. This will help ensure you get reliable information from a company that isn’t trying to scam you out of money by promising something it cannot deliver on.
4: Will they pay off my creditors if I am up to date?
Sometimes an individual with a negative credit report is not in default or delinquent of any payments but still has bad credit. If you are up-to-date on your payments, ask your potential credit restoration service if they will pay off your creditors directly.
If they will not do that, then it might be worth paying for services on your own. However, if you are behind on payments and see yourself having trouble staying current in the future, then definitely go for debt help with a reputable company that does work directly with creditors. Just make sure they’re legitimate and have a strong reputation first.
5: Do they provide legal assistance with collections calls, lawsuits, garnishments, etc.?
If you’re looking for a credit restoration company, look for one that includes legal assistance. For example, it might help to know what laws apply in your particular case and how you can use them. That way, when you talk with creditors and collection agencies (and not just collectors but also lawyers involved in debt collection), you’ll be able to have better conversations and potentially get more favorable outcomes or less stressful negotiations.
Some credit restoration companies provide legal assistance with collections calls, lawsuits, garnishments, etc., while others only deal with positive payment history reporting services. Determine which option is right for your situation by talking with a representative.
6: Will they negotiate with creditors on my behalf?
You don’t want to hire a credit restoration service that can’t or won’t negotiate with your creditors on your behalf. Negotiating with creditors is not easy and shouldn’t be undertaken lightly, but is an important part of clearing up your debt and getting it off your back once and for all.
Make sure they are willing to make phone calls, send letters and do whatever else they need to do on your behalf to save you money. Otherwise, what’s their incentive? It’s better for them if you go through debt settlement or bankruptcy rather than paying them by helping you pay off what you owe.
7: Can I speak with former clients about their experience working with the company?
If they’re willing to send you a few contact names and numbers, that’s great. But even if they aren’t able to provide those references upfront, it doesn’t mean their company isn’t good. If you get their names and call them, don’t make a big deal about why you’re calling; just make it clear that you are considering hiring them for your services.
If for some reason former clients won’t talk with you—and chances are good that they’ll be happy to speak with someone considering hiring their service—that’s fine too. At least you were able to confirm they still work with current clients!
