Maintaining a good credit score is essential when it comes to approval of loans, credit cards, mortgages, rental premises, and at times employment opportunities. However, if you have a low credit score, it is quite embarrassing to try to regain the score on your personal own. Thus many people find themselves asking the question – can I just pay someone to get my credit score repaired for me?
Now for the long answer to the question, yes, you can hire credit repair companies to assist you in fixing your credit score. However, there is some crucial information about companies specializing in credit repair that you need to be aware of.
In their operations, credit repair companies perform what?
Credit repair services involve taking legal action for you to research your credit reports and come up with negative information that is incorrect, untimely, misleading, or old. Such information generally causes credit ratings to drop. Such firms employ various techniques as a way through which they can attempt to make creditors remove negative items from credit reports and thus fix bad credit scores.
Some of the common tasks credit repair services perform include:
- Getting your credit reports from the three major credit reporting agencies to check for wrong entries
- Challenging false late payments, charge-offs, collections, and the like with the Credit reporting bureaus
- Disputing credit checks made by anyone without your knowledge or consent, especially those labeled as ‘hard’
- Some of the core reporting errors that an organization is likely to find include; Personal information errors such as name or address, account errors such as closed accounts reflecting as opened
- Offering samples and guidelines on how to write to your creditors for an option to have the negative items expunged
- Open credits and disputing for new negative data.
However, professional credit repair services are prohibited by law from erasing accurate negative information from the credit history before the proper reporting period is over.
Credit repair services vary in cost with the average price ranging from $70 to $120 per month while others charge a flat fee of around $200 to $300 for a one-time service.
Often it costs between $100 to $400+ monthly when you hire a personal credit repair service company. Some companies offer a cheap first work or setup fee which may go as low as $15 while others may charge up to several hundred dollars in addition to the normal monthly service fee charges.
Some credit repair companies have chosen to operate as non-profit organizations, which are only allowed to charge a small amount for administrative purposes. However, such services, may not be as extensive as those offered by companies charging higher fees.
As with any business, ensure that you understand every fee that will be charged to you when you hire a credit repair company so that you don’t get surprised by any additional charges. Also, it is recommended to search for at least a few different services so that you can compare the prices and make sure you are not being overcharged.
Does Credit Repair Work?
You should be willing to pay an amount to a credit repair company if the company is fixing real mistakes that are pulling down your credit score. Several consumer protection laws can be used by credit repair companies to challenge flawed data with credit bureaus.
However, that does not mean the bureaus shall immediately delete every item that has been disputed, no matter how inaccurate. Sometimes there is some interchange rarely is there a one shot one kill situation. Nevertheless, a good credit repair company achieves the aim of having at least some negative items removed from most clients’ credit reports.
Some key stats on credit repair results indicate:
- A study reveals that about 70 percent of credit reports may contain mistakes that can be corrected.
- Customers of established credit restoration firms experience a 40 40-point difference in credit rating in four months.
- A credit report check revealed that 75% of the time, the credit report was changed to the consumers’ benefit when a dispute was filed.
According to the, nothing can be done legally to remove information from the reports before the time that the credit repair service has advised. Ideally, the negative credit history that you present in your credit reports should be largely due to reporting errors rather than credit misconduct.
Risks and Considerations of Paying for Credit Repair:
While professional credit repair services seem promising, there are some risks involved:
- Scammers exist and will happily accept monthly payments for credit repair services that don’t work
- Not even legal services can afford to make or give a guarantee or undertake that their services will boost your credits by this score.
- In some cases, you can do credit repair work by yourself for free and not have to pay a company
- They can reverse after some time if the credit bureaus do not update their systems about your errors.
It is also important not to have too many disputes in the file at once as this is going to look a bit suspicious and work against the person.
It is important to know that you will have to weigh the benefits against the demerits before subscribing to this type of service and also have to do proper research on the various companies. Should also have rational expectations as to what credit repair firms can offer within the ambit of the law.
Getting things done for free is also another way of doing things on your own. However, individuals who cannot spare so much time seek assistance to understand the lengthy dispute system better.
In general, credit repair service is most beneficial for people who have low credit scores due to the mistakes made by the credit bureaus in reporting rather than due to missed payments and other financial misconducts. It is very possible to get your credit score fixed in case of any problem as long as one will learn to correct his or her mistakes and be responsible when using credit in the future.
Call now for expert credit repair services: (888) 803-7889
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