Credit Repair Services and What to look for
If you are looking into credit repair services than chances are that you know something about credit and credit reporting to begin with. Just reading the article is a great first step in taking control of your credit and building a stronger financial future. We have created a simple guide to understanding credit repair and the services available.
What is a Credit Score Refresher:
Your Credit Score is a statistically derived number that is a reflection of a persons credit worthiness to determine the likelihood of this individual to pay back debts. A credit score is based of that persons history of borrowing and repaying debt and is then given a number between 300 and 850, the higher the number the more credit worthy the person is deemed to be.
Now that we are on the same page with what a credit score is, we can look at credit repair. As the name implies, credit repair is designed to help repair ones credit after someone has been the victim of identity theft or personal financial trouble that inhibited them from repaying borrowed money. It is best to determine what the cause of your poor credit is to get a credit report to show you where the problems lie.
From here you can identify which credit repair service will be right for you:
The process of repairing your credit starts with identifying your problems through reviewing your credit report. You will want to document any errors that you find on your credit report. Using payment history and bank statements, for example, you can build your case to argue the negative hit to your credit score and why it should be removed or revised. This information you created is then sent to the necessary credit bureau, the most common are; Experian, TansUnion or Equifax. In addition to your documents, it is a good idea to write a short paragraph (no more than 100 words) explaining the situation. This statement will be attached to your report and available when credit card and loan companies go to access your credit report.
What should I expect from the Credit Repair Services:
If you are reading this, you most likely are in need of help to repair your credit and are looking for advice on how to do so. Credit Repair agencies have the expertise in dealing with lenders and credit bureau’s to efficiently and effectively get the job done. Think of the credit repair company as your personal advocate to tell your story to the right people. The repair companies will save you time and [most] have extensive knowledge of credit reporting laws. If you have been a victim of identity fraud, it is well worth the money to have a credit repair company fix the problem and get the issue completely removed from your credit report.
It should be understood that you can personally do this work but keep in mind the cost/benefit of studying, learning and implementing all this new material for the first time. Many people will try in order to save the money but end up spending countless hours trying to do it on their own and end up hiring a credit repair company anyways. If you are hoping that a credit repair company will just make your credit better magically than save yourself the $50/month toward the credit repair and put that money towards paying off your credit card and loan balances; this will actually get your credit better. Credit Repair services help to fix specific issues on your credit report, they do not increase your score just by hiring them.
Final thoughts on Credit Repair:
Having a team that has legal knowledge and experience to take care of specific issues on your credit report is a win anyway you look at it. Spend the $50-$100 to get it done right the first time and move on to living your life with a better credit score and one less thing to worry yourself about. When choosing out a credit repair company you should keep in mind that there are many scam sites out there that will just make your credit worse. Check out the Credit Repair Organizations Act which details what credit repair companies can not ask for. Mainly bar’ing credit repair companies from:
- Demanding payments in advance
- Requiring that ‘credit repair’ contracts be in writing
- Giving consumers certain contract cancelation rights
*Check out the link for the complete law. It is very short and quick to read.