Searching for the best credit card debt consolidation company can be confusing. There are so many sales pages and ads on the internet hurling information that sounds just too good to be true. It’s important for you to do your homework on the different credit card debt consolidation companies and their experiences with other customers.
This means browsing through various sites, checking reviews online, and verifying the legitimacy of the company itself. While thorough research is required, it’s always great to have an idea on what you should be looking out for when sourcing a credit card debt consolidation company.
Here’s what to look for in credit card debt consolidation company reviews:
1. Positive BBB Standing
This is a great way to begin researching a credit card debt consolidation company. The Better Business Bureau has a useful website where you can check if the company you are enquiring about is legitimate and has valid accreditation.
The BBB will usually assign a rating to this company. The review will most likely make mention of the existence of the credit card debt consolidation company on the BBB.
The website also has it’s own reviews where you can view complaints made by angry or frustrated customers. Furthermore, you’ll also be able to see if any legal action was taken against the company as well.
2. Agency Affiliations
A good review will mention that the credit card debt consolidation company is registered with a reputable association. Agency Affiliations add to the credibility of a credit card debt consolidation company. Companies are not always part of those associations though.
3. Non-Profit Status
Non-profit companies with a proven status can be a great solution if you’re searching for a credit card debt consolidation company. It’s crucial that you seek confirmation about this yourself. The company should have some sort of proper certification to prove that they are legitimate.
The review should also mention that the company is a non-profit one. Non-profit credit card debt consolidation companies without the relevant proof should not be trusted.
4. Watch Out for Companies Claiming a Religious Affiliation
There are a few companies out there that try to trick customers into giving them business by stating that they have a religious affiliation within the company. These companies try to take advantage of a customer’s belief in a particular religion, by causing them to believe that they are solving their problems in the ‘right’ way.
Unfortunately, many people found themselves intertwined in a new problem as time goes by. Customers should search for a company that maintains a good image consistently.
5. Interest Rate
Reviews should display an estimated or example interest rate that debtors can expect to receive. The customer should also check that the interest rate is lower than the current interest rate they are paying on their credit card balance. Borrowers should also remember that a lower monthly payment is not a complete win. Interest rates should be scrutinized completely to get the best deal.
6. Loan terms
Check the loan terms on the review of the company. If customers usually get longer loan terms with that specific credit card debt consolidation company, then you need to be a bit wary. A longer loan term could mean a smaller monthly payment, but it could also mean spending more money in the long run. Your goal should be to settle your accounts as soon as possible by paying the least amount of money.
7. Fees and Hidden Costs
An honest credit card debt consolidation company usually explains fees upfront. There are sometimes other costs you could incur just to get the deal sealed. If you don’t have the money upfront, the company could make an enticing offer where you would only have to pay off those fees in conjunction with the current loan balance. These fees incur interest for the duration of the loan. In the end, you really won’t be saving as much money as you thought. A good review would mention this as one of the cons of dealing with a company.
In conclusion, there are a lot of methods you could use to suss out a review of a credit card debt consolidation company. You just have to educate yourself first so that you make a good choice and don’t get reeled in with any sales talk.