Credit Repair is when a third party commonly known as a credit repair organization or credit service organization tries to get information removed from your credit reports in exchange of payment.
These companies are there for making profit and their services are published or marketed as being able to help people to improve their credit.
Just building a credit score in the first place can seem like a hastle to mank people and the opacity of the industry can make keeping your score intact seem impossible.
This is where credit repair services come into being by promising as mentioned above to fix all your problems regarding credit card.
What you should take in note is that a lot of those flashy ads and over-the-top promises are outright scams and you can always improve your credit without spending any money.
Let us know how credit card repair services help….
The main job performed by a credit repair company is to clean up your credit report and help you to make sure that your credit history stays accurate.
If you have faced identity theft or inaccurate reports which left negative impact on your credit report for actions which you didn’t even take,these companies can help.
How they perform is by-
- Spotting mistakes that can be validated- they help you by sending a debt verification letter to request the validation which a creditor,collection agency must make sure of their accuracy.
- They also communicate to the companies on your behalf requesting for validation and asking for credit report which otherwise will be a time consuming job for you.
Yes,they can not promise to raise your credit score but their soul purpose is to make sure that the credit history doesnot have any errors and hence you will be able to see a boost in your score.
Before you sign with a credit repair company and decide to pay, you should ask yourself few questions.
- What is affecting your credit score?
A lot of things can affect your credit score and cause a bad credit and to talk distinctly,a credit repair company can address a few of them which are-
- Lack of credit history
- High credit utilization
- Recent hard inquiries
- A history of late payments
If you are overwhelmed by debt or unsure where you can start boosting your score , what you can rather do is look into non profit credit counseling for free advice.
- If the company is reputable which you are signing up with.
When you have decided that you want to pay for the credit repair service, you shoud choose the company carefully because in this field,there are a lot of scammers who try to prey on desparate debtors.
You can figure those out if you find out any or both of these red flags while dealing with them –
- If you find them charging upfront fees . The federal Trade Commission’s Credit Repair Organizations Act states clearly that repair companies can not opt for advance payment and true companies charge fees only after successfully improving or correcting your credit report.
- If they prmise to remove negative marks even those being accurate.
So,if a company is free of red flags,you should go for it .
- If you can do it yourself..
Yes,you can do everything a credit repair company can do by yourself but if you are ready to put on the time and effort yourself then why spend money on it?
If your credit card is hurting for any of the issues mentioned above then you should take things in your own hands and fix the score yourself over time.
If you are not ready to put your time on to something like this,you can surely spend some money to get the dispute fixed by someone else for you.
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