5 Things To Consider Before Hiring A Credit Repair Company

Are you planning to secure a loan or to buy your first home? When you are planning to do these things, your credit score is an important factor. Even when you are investing or saving up, your credit score is directly affected.  

A good credit standing is your ticket to getting that big plan into a reality. Poor credit standing won’t allow you to qualify for a credit card application or a mortgage application. Your credit score directly affects your financial security. So, if you are having a hard time making your credit standing look good, you may opt to hire a credit repair company. Rebuilding your credit score takes time and a lot of theoretical knowledge, which can drain you out or gets you burnt out. You would not want to go through all the stress in trying to level up your financial standing. 

A credit repair company will take care of your financial standing so you can have more time in other areas that you would like to work on. Also, you can save time and money since rebuilding your credit score is a long process that involves dealing with difficult people. In addition to that, there are tons of credit repair companies out there. So, what are the things to consider before hiring a credit repair company?

Here are some things to consider before hiring a credit repair company:

1. Experience and Track Record

It is crucial that you choose the right credit repair company for your needs. There are many credit repair options to choose from, you just have to select the best. Look into their years of experience and how well they performed over the years. You would want to make sure that the company you chose is well-established. A well-established credit repair company knows the ins and outs of rebuilding your credit score. You might want to consider also reading their customer reviews and testimonials. You need to choose a top-notched credit repair company with seamless customer service.

2. Turn Around Time on Deliverables

It is also vital that you check in with a credit repair company that would serve you in the quickest possible time. Some companies would deliver for about a month or weeks; some also can guarantee you to deliver fast results. You can inquire about the delivery time, so you can check if it fits with your need and how urgent your need is.

3. How Much is the Fee?

Some credit repair companies offer a “pay per delete” one-time payment which involves the removal of negative items on your existing individual credit report. Your credit score shows how reliable you are as a borrower. Removing late payments and other negative items will help your credit standing. On the other hand, some companies charge monthly for their services. These two (2) options have their own pros and cons, so it is important to choose which is best suited to your needs and think of how it will affect you in the long run. A good company wouldn’t force you to pay for something upfront unless they have delivered their services to you.

4. How About the Legalities?

You wouldn’t want to be scammed right? It is best also to check if the credit repair company that you plan to hire is fully operating under the Federal and state laws. Also, a reputable credit repair company adheres to licensing and bonding requirements, which vary from one state to another. This is to protect you from any misconduct during the engagement. A legitimate credit repair company will provide you a written contract stating your legal rights and the services they provide. Legit companies do not hide anything from customers. 

5. Don’t Forget the References

You can request references from your preferred credit repair company to check how competent and reliable they are. These references consist of customers that they have worked with, in the past. It will enable you to clearly see how well they performed and serve their customers. If a credit repair company refuses to do so, you may refer to a legal counsel who can vouch for the company’s legitimacy. 

As a customer, you should be extra-cautious when choosing and working with a credit repair company. Since there are many credit repair companies, you should be able to differentiate a legitimate one from fraud or scam. You should see to it that the credit repair company you chose supports and will address your current financial situation. Since there is no one size fits all, your friend’s credit repair specialist may not work for you, so choose what is best suited for you. In addition to that, you need to consider its reliability as to how true they are in terms of delivering results. A good credit repair company does not lie in the results they can offer. 

What Can You Do With a Self Directed IRA?

The prevailing belief towards getting wealthy and accumulating strong self-worth is through hard work. While this may be true to an extent, the real way to build wealth is by creating multiple streams of income and earnings. Investing is one of the quickest ways to start setting your future self up for bigger gains and a better life.

The best way to be able to retire comfortably is by building a retirement portfolio through income investing sooner rather than later. How exactly do you start investing? Well, one of the safest options around is a Roth IRA, which works as a retirement account of sorts, but obviously, it is a little more complicated than that. There are also self-directed IRAs that have their own unique advantages, and here are some of the things you can do with a self-directed IRA.

More Portfolio Diversification 

Investing in many different retirement plans or other investing portfolios limits you to a select few assets. Common ones include mutual funds, ETFs, stocks, and bonds. While these are usually safe and proven ways to help build your money, there are so many more options out there to focus only on these few. Being able to diversify your portfolio with rare Earth metals (gold, silver, palladium, platinum), REITs, land trusts, start-ups, equity, and emerging assets like cryptocurrencies helps create a much broader and potentially more lucrative long term investing. Self-directed allows you more freedom to choose what to invest in.

More Control Over Investing

Just like you have more control over how to diversify your portfolio, you can expect to be able to grow your knowledge of investing and financial literacy regarding assets as you continue to grow your self-directed IRA. Learning the basics is always important for opening a Roth IRA, but you also need to understand that you have to do it yourself eventually. Financial advisors are great at what they do, but the information is out there, and learning while you invest is always an option that is available.

As a word of caution, investing is not a game, and people can lose a lot of their money when they take risks that are emotionally driven instead of backed by knowledge. It can be incredibly hard to build wealth when you are investing without knowledge, so self-directed lets you have more control over what you do and how you learn, but it does not mean your investments will always go up.

Long Term Wealth Planning

Back to the beginning, making your money solely through income will be able to sustain you, but it will never get you rich unless you are earning a doctor’s salary, so for that, you need to invest. The same applies to building wealth that you can pass down. Generational wealth, as it is called, is lost after just two generations because there is no educating the youth of a family on the power of things like compound interest. Being able to set up your grandchildren one day with a strong portfolio of investments should be something to consider now while you have the time, or at least pass it down to your own children eventually.

Building generational wealth can be done with other types of investing accounts, but a self-directed IRA has an interesting benefit. There is a provision that allows the tax-free gains from the IRA to be passed down, which helps set up your beneficiary with the growth you made. Over a long period of time, the right assets can lead to the planning that helps a family become sustainable and self-dependent with their money.

Better Protection of Assets

It is somewhat of an oxymoron to say that a self-directed IRA provides better protection for your assets, but there is a reason to make that claim. While you are in charge of your investments and there is no hand-holding from a financial advisor or brokerage firm to help you, you are able to move around your assets to protect from downturns much easier than some other types of accounts.

During an economic downturn, your stocks may be stuck losing value, and selling them would be a bad way to reposition yourself. With a self-directed IRA, having a diverse portfolio that allows you to shift your assets around provides some extra protection against volatility. Of course, it requires savvy investments in the first place, but having multiple exit strategies is better than being funneled into net losses for your assets.

Using a self-directed IRA is not for everyone, but it does allow you to do some interesting things with your investments to grow your wealth and your future generation’s wealth. Now that you know some of the things you can do with a self-directed IRA, you can make a better choice on what type of investing account to choose.