Repairing credit can be daunting if you do not know the right steps to take. This gets more complicated if you’re building the credit on your own. You would have to update your knowledge with a lot of credit law books and constantly keep in touch with your creditors and credit bureaus. Even with these, you can’t be guaranteed a successful outcome. Hence, it is important to seek the service of a professional credit repair company.
Before we proceed you need to understand what credit repair is. Credit repair involves removing negative items from your credit reports that have the tendency to damage your credit and your credit score. Depending on your situation these items comprise tax lien, late payments, charge-offs, bankruptcy, civil judgment or lawsuit, collections, settlement, and voluntary surrender.
Having these items removed is not an easy task, which is why you need to consult a credit repair company. Working with them implies that your credit will be worked on professionally, giving you the desired result within a short period of time.
What Is A Credit Repair Company?
A credit repair company is a commercial business that helps individuals repair their credit at a stipulated fee. They handle all legal workloads and negotiate with creditors and credit bureaus on your behalf. In addition to this, they dispute any incorrect negative item found on your credit report.
What They Do
Despite the fact that credit repair companies help improve your credit, they do not guarantee any outcome. Only provide ways by which your credit can be resolved, and work alongside your creditors and the three major credit bureaus to get this done.
1. Dispute Inaccuracies On Your Credit Report
As surprising as it may sound, sometimes, errors can be found on your credit report. These errors include inaccurate credit information like credit accounts that are not yours. Also, they detect inconspicuous credit reporting errors like negative items that have exceeded the time duration permitted by the law.
Disputing these errors on your own can be time-consuming and challenging. For this reason, you need the services of a credit report company.
2. Negotiate For A Credit Report With Less Negative Items
Credit repair companies are in the best position to negotiate on your behalf with creditors. They have the ability to easily spot creditors that are willing to forgo your negative items in exchange for a payoff. This negotiation is known as a pay-for-delete agreement. Credit report companies can also request that creditors remove negative items from individuals’ credit reports as soon as they make payments.
3. They Provide Professional Advice
A reputable financial company provides professional advice on how best you can build your credit. This is due to their team of legal and financial experts that stay updated with various laws and policies regarding credit. Such a company can advise you on what debts to settle first and how to work your way around your credit.
It is important that you choose the right credit repair company to work with, as this determines your success rate. If you would like to get in touch with a reputable credit company, please visit this site.
When a credit repair company can’t help you?
You know, sometimes the help of the best experts may not make much difference to you. These are cases where there are really strong reasons against you. In this particular case, when it comes to your credit score, there are certain situations where a credit repair company can’t do much. For example, if all the credit reports submitted are correct, or you have mismanaged your accounts, then you are in a rather difficult situation.
Also, in order to be able to hire a credit repair company, you must have a credit that needs repair. It is not possible to build credit from scratch. It’s also important to note that companies of this type cannot help you create a new credit identity. By this, we mean that your previous lending and debts, as well as credit reports, cannot be deleted. All of this is regulated by the CROA (Credit Repair Organizations Act). Finally, we have to mention that you have to pay attention because credit repair companies do not offer free services. You can read more about it below.
How much does a credit repair company cost?
Well, we can’t tell you the exact value of the fee that companies of this type of charge for services, but there are some indicative and average prices. In any case, the best solution is to check the price list of the company you are dealing with.
So, even though you have not yet entered into an agreement with a particular company, most services require startup fees. These range from $10 up to $200, and most often relate to the initial review of your accounts and credits. When you enter into a contract with a company, you can expect most of them will charge for their services on a monthly basis. Price ranges from $50 and can go as high as $100.
We need to add a few more things. For example, some companies may offer free consultations and an overview of their services so you can check if you can benefit from them. Also, they can offer you some additional services that may not be as relevant to your case, so think carefully because you may pay more than you have to. Our recommendation is also to focus on money-back guarantee offers so that you can be protected in the event that you fail to receive appropriate assistance.
How long does it take to repair credit?
It is really difficult to answer this question right away. However, according to the FCRA (Fair Credit Reporting Act), the deadline for detailed analysis and review of accounts and credits is 30 to 45 days. This is followed by a credit repair period that can be completed in at least 3 months. This means that after about 90 days you will have better credit scores and your credit will be repaired. However, this also depends on the company.