The limitations of poor credit are stressful enough, the last thing you need to deal with is a business credit repair scam or working with a company that charges exorbitant fees for very little work. With some due-diligence and research, you can avoid risky credit repair schemes.
5 red flags in identifying a business credit repair scam:
- Timeline guarantees: No honest credit repair company will offer you promises or guarantees on the results or timeline of their work. Since repairing business credit is dependent on research and communication with the bureaus and your creditors, it is difficult to nail down an exact timeline for restoration. They may offer an estimation based on experience, but by no means should they guarantee it.
- They cannot answer your questions: During the consultation take the time to ask questions. Dig for answers about your business credit, they are the experts and should be able to provide insight. Do not expect for them to divulge their method, but you should walk out of the consultation more knowledgeable on business credit reporting.
- Not transparent about fees: Expect for a good credit repair company to be honest with you about every fee associated with the process. Every company has their own pricing model, but you should expect the cost to clear and detailed in the contract. If they are hesitant to commit to a rate this should serve as your red flag. Do not fall victim to a credit bureau claiming that only they can repair your business credit, this is false and an attempt to hold you hostage.
- They mention “networking”: In the world of credit it does not matter who you know, if the company starts talking about their “connections” – run. Credit repair is not a popularity contest, a good company works off their knowledge and experience.
- No website, reviews, or testimonials: In today’s world having a footprint on the internet is standard. A sketchy or non-existent website is one major red flag. You want to make sure to work with a company who is seasoned in credit and can provide you with reviews and recommendations from past clients.
Use these tips to help guide you in finding the best credit repair company to work with. By knowing how to spot a business credit repair scam, you will save loads of time, money, and reach your credit goals faster.