Credit repair solution providers can help you fix your credit history and score. They can communicate on your behalf with the credit bureaus and work to eliminate any negative items affecting your credit report. But do they really work? Can credit repair solutions improve your credit score in return for a fee? Keep reading to find out.
Legitimate credit repair companies can help you by removing inaccurate information from your credit report, though scam agencies posing as credit repair solution providers can end up wasting your time, effort, resources, and most importantly, your peace of mind.
Understanding the process of credit repair
You need credit repair services when your credit score is poor, making it difficult for you to obtain any credit or loan with favorable terms and conditions. A poor credit score also means that you can end up paying much higher interest on your loans even if you somehow secure them from some lenders.
Credit repair involves the process of fixing misleading or negative information from your credit report. A credit repair company does all the work for you to fix your credit, which can be an overwhelming process for people to take care of on their own.
How credit repair solutions work
First, they obtain your credit report from the three major credit bureaus: Equifax, Experian, and TransUnion.
Once the credit repair companies retrieve your credit report, their team reviews it for any errors or negative items that can be disputed. In the case that they find something and determine that it can be fixed, they let you know that you are a good candidate for credit repair.
The teams at the credit repair companies thoroughly check your credit report, and if they find negative information, either they directly connect with the creditors or contact the credit bureaus. The credit repair companies can ask you to provide additional supporting documents for the disputes in your report.
As per law, the bureaus need to investigate your case within 30 days. They need to contact the creditors and share your letter as well as the supporting documents. Once the investigation is complete, the bureaus report your results in writing.
Legitimate credit repair companies take their time to handle the credit repair process, which can be up to six months, depending on your case.
Reliable credit repair solution providers can be a bit expensive, and a few of them may also offer money-back guarantees, while the scamming agencies may promise quick turnarounds and lure you with low fees.
Can a credit repair solution provider really help?
Yes, a credit repair company can help you. Most of these companies have a team of attorneys that have the right knowledge and experience. They are skilled when disputing negative information on your behalf.
These attorneys also help you to improve your credit history by applying for provisions within federal consumer protection laws.
A good credit repair company can:
- Help you to understand and evaluate your credit report.
- Help you to understand how your credit scores are determined.
- Help you to identify strategies that will perpetually boost your credit standing.
Having said that, you must understand that if the negative information in your credit report is accurate, no credit repair company can legally do anything to remove it.
While looking for a credit repair company, you should tread carefully. To identify scamming credit repair agencies from legitimate ones, look for the following points. A scamming credit repair company is likely to:
- Ask for payment before starting any work for you or offering the initial consultation.
- Insist that you do not contact the bureaus directly.
- Suggest that you dispute information that is accurate in your credit report.
- Suggest that you provide fake information in your applications when applying for loans or credit.
- Avoid mentioning your legal rights while explaining their services to you.
The bottom line
If you hire a credit repair solutions provider thinking it can erase any and every mistake on your credit report, you’ll get nothing but disappointment.
It is important to keep checking your credit reports regularly. If you fail to do so, errors can end up staying on your credit report for years, affecting your credit score negatively.
Cool Credit works out everything for you and makes progress to improve your credit score so that you can reach your goals without any hassle.