Some credit repair businesses make what seem to be ridiculous and unrealistic promises like “Erase Your Bad Credit in 2 Weeks – Guaranteed!” and “Get A 720 Credit Score in 30 Days.”
There are plenty of credit repair con artists out there that offer to improve people’s credit scores with a magic wand, but you only have to look a little to discover them.
Do all credit repair businesses, therefore, have to be frauds just because certain organizations prey on people with bad credit? Depending on who you question, the response will either be a booming “yes” or an even louder “not at all!”
Credit repair services cannot work miracles and cannot accomplish anything that you cannot accomplish on your own. Companies that repair credit cannot guarantee to eliminate legitimately unfavorable information from your reports or to erase your debts. They can assist you in ensuring that your credit reports are entirely correct.
This provides you the chance to establish the best credit score possible for your situation. However, they won’t be able to eliminate your obligations or correct any unfavorable information on your reports.
Of course, if you’d prefer not to work with a credit repair business, you have the option to repair your credit on your own. Unless you have to pay off your debts, which you could ultimately have to do even if you’re utilizing a credit repair agency, there shouldn’t be any costs involved. The compromise? Everything must be handled by you alone, which might take some time. Additionally, the credit repair process might occasionally be trickier than it seems.
Contest Any Mistakes On Your Credit Reports.
Errors in credit reporting occur surprisingly frequently. According to a 2013 FTC investigation, up to 25% of credit reports include inaccuracies. Even if the systems for credit reporting haven’t altered much since that time, mistakes are undoubtedly possible.
Credit repair companies can contest false information on your credit, such as credit or collection accounts that aren’t even yours. They could also be able to assist you in identifying less visible issues in your credit reports that you might have overlooked on your own, such as bad accounts that have been on your reports for longer than is legally permitted.
Normally, you would be required to write your own letters of disagreement and resolve each one independently. This may take a lot of time and be daunting.
You may at least feel secure knowing that the work is being carried out by a professional if you rely on a trustworthy credit repair business to conduct the dispute process for you.
Dispute Negative Items
According to federal law, each item in a consumer’s credit reports must be verified. Some creditors won’t confirm a negative item within the customary 30-day response window because they are no longer in operation or lack the means to do so.
Because of this, a credit repair agency could contest all or the majority of the unfavorable information on your credit reports, regardless of its accuracy. The negative item will have to be deleted from your report if the creditor doesn’t reply quickly before the time limit expires.
Attempt To Negotiate A Less Negative Credit Report.
Some creditors might be ready to alter how they report your account to the credit agencies if you’re willing to negotiate or pay a past-due obligation. Some credit repair businesses could conduct these discussions on your behalf.
Experienced credit repair businesses are frequently aware of which creditors can be contacted and under what circumstances. They could also be knowledgeable on bargaining techniques that you haven’t thought about.
Provide You Advice
Good credit repair businesses should be well-versed in the factor that influence your credit scores. They might be able to review your reports and provide you guidance on how to repair your credit outside of the scope of typical credit disputes.
For instance, a credit repair business might be able to advise you on which accounts to try to settle or pay off first to improve your credit ratings the most. It may be able to assist you in formulating a plan for the types of new accounts you ought to open.
Of course, not all credit repair businesses operate in this manner. Some just provide services for resolving conflicts or engaging in negotiations. However, if you pick your partner firm correctly, you can have a knowledgeable resource to turn to when issues arise while you attempt to repair your credit.