Since the Great Recession, most Americans have managed to recover from “bad” credit scores. However, there are some who are still struggling with low credit scores. Keeping this in mind, some individuals have decided to take action and clean up their credit reports. This is what has led to the emergence of many credit repair companies.
However, are credit card repair companies really worth all the hype? Are there any extra services they offer? What is it that they do that you can’t do it on your own?
Here is a closer look at credit repair companies and if they are worth your time and money:
Some credit repair companies might try to convince you otherwise, but you can actually perform credit repair services by yourself.
There is no magic formula used by credit repair companies that you cannot do on your own. If you feel that there is some information that is inaccurate or inconsistent on your credit report, you can actually raise disputes.
Most credit reports come with contacts of where you can send any disputes. These are the same channels followed by credit repair companies to raise disputes and therefore, there is nothing new that they are offering.
They can’t fix the negative
Negative information that is accurate is reflected on your credit report for up to 7 years. No matter how much you try or who you consult, you can’t change this. No matter what they promise to deliver, no credit repair company can fix this.
Therefore, hiring a credit repair company is not that necessary since they are as useful to you as you are by yourself.
Credit repair companies are there to help out individuals who are too busy to carry out the tasks by themselves. However, if you have the time to perform the services, then there is no need for you to pay others to do it on your behalf.
With the emergence of many companies claiming to be credit repair companies, you should really do a background check before trusting anyone with your finances. For example, if you come across these signs, they should act as red flags for you, and therefore you should avoid such companies:
- The company asks for upfront payments before they even offer any services
- They decline to read to you your legal rights
- They insist that you should never contact the credit bureau directly
- They advise you to take illegal action – such as disputing everything on your credit report even when it’s accurate. It could also include generating a new credit identity. This could easily result in charges for mail fraud.
According to law, all credit companies are required to read you your rights. They should also provide a written contract that contains detailed information on everything they will do for. The contract should also include a 3-day right to change without attracting any charges.
It should also include the exact amount of time that it will take until the results are reflected. It should also clearly indicate all the fees that you are being charged. If you are not sure about your rights or which credit company to use, you can consult a credit repair attorney and agency review site.
Not all credit repair companies are irrelevant. Some have helped many individuals clean up their credit reports. They are there to help out those individuals who need guidance and those who are too busy to do it by themselves. It’s true that they can do a good job, but if you can spare some time to do it yourself, it’s not worth paying someone else to do it.