Credit repair will remove information that should not be on the credit reports, so it’ll stop dragging down your credit scores. However, it cannot remove negative marks if the information is accurate and verifiable. You can hire services that provide credit repair for a monthly fee to manage these tasks to rebuild your credit. But everything a service does, you can do on your own. However, if you do not want to spend time researching and don’t want to cause more harm than good, hiring a credit repair expert is worth it.
Is it worth using a credit repair company?
Credit repair companies work for improving credit history, which in turn boosts your score. The credit repair company begins by pulling a copy of the credit report from each of the 3 credit bureaus. The company looks for negative problems on your report, like charge-offs, judgments, tax liens. It works out a plan to:
Validate the negative info that the creditor report to you.
Dispute a reporting error.
Negotiate with your creditors to remove the negative items from your credit report.
On your behalf, send cease/desist letters to debt collectors to stop collection efforts.
Creditors generally report to their credit bureaus once a month. If there is an item that should be disputed, the credit bureau has 30 days to complete the investigation once the dispute is filed. You will be notified by mail of the dispute outcome.
Contrasting to the average person, credit repair companies have special skills and customer credit knowledge. They know how to use federal customer protection laws such as the Fair Credit Reporting Act (FCRA), the Fair Credit Billing Act (FCBA), the FDCPA (Fair Debt Collections Practices Act) to assert and uphold the rights. They know what to do if a creditor substantiates what they report about you to the credit bureaus. Until you’re prepared to spend hours learning the essential credit repair steps, seeking a qualified advocate can be a good solution.
Most people have good things to do than spending time learning all they can about credit reporting, credit scores, and customer law. Though do-it-yourself credit repair can sometimes net a success, but often the process needs specialized knowledge and can take much longer. Some credit repair tasks are:
- Recognizing the customer protection laws for the certain condition.
- Contacting the creditor to notify them of the problem.
- Doing follow-up actions that depend on the responses.
- Tracking correspondence and paperwork.
- Going to a notary public if documents require verification.
If this sounds like an overwhelming list, consider getting the help of a credit repair company. An advocate with a proven track record will help you manage the details of fixing your score in the right way.
Why spend the time struggling for credit repair procedures? You should do research and then consider all options.
How to select reputable credit repair services
Hiring a credit repair service or company is not simple like outsourcing any job. Though there are some legitimate companies, the credit repair business is known for scams. A credit repair company doesn’t have any rights that you do not dispute info on your credit reports. The FTC warns against utilizing credit repair services that guarantee they can remove negative info that is accurate or say they will help you establish a new identity using a credit privacy number. As laws protect you from unfair reporting and collections, there are laws protecting you from credit repair services that mislead. The Credit Repair Organizations Act needs companies to give you a 3-day right to cancel without charge, a firm total on prices, and an estimate of how long it’ll take to get results.
A trustworthy company will coach you on how to manage the existing credit accounts to avoid damage. If, for instance, your cards are nearly maxed out, it should advise you to pay those balances down. Whether you repair the credit or pay some person to do it, have a plan to build the credit.
What one needs to know about credit repair companies
When it comes to credit repair, anything that can be done legitimately then you can do it yourself, however it will cost you time to learn how to do it and execute the steps. And a do-it-yourself option is going to be cheap than paying someone else to do it for you but they will have the experience dealing with all the elements on your credit report.
For those people who have more cash than time and hire others to do what they can do themselves, there are other problems besides cost to give you pause before hiring a credit repair company. Therefore, it is important to note that if you have the budget, then you can take the services of credit repair services.