The world is a credit-conscious place. You have to constantly prove to creditors that you’re trustworthy in order to get the best rates for your loans and mortgages. But as with most things, maintaining a healthy credit profile is a lot easier said than it’s done.
What is Credit Repair?
Credit repair can be something you do for yourself as when you look through your credit report and find that there’s been an error in the record. When you dispute these certain items, you’re in fact already trying to “repair” your credit. The process of identifying, monitoring, and disputing negative information on your credit report is called credit repair, and it can also be a service provided by a company to help improve your credit profile.
Can you repair your credit on your own?
The answer is yes, but we highly recommend you don’t. Let me explain that.
You see, many credit bureaus would want you to believe that you can repair your credit on your own. Yes, you can; however, it’s not as easy as it sounds. It’s the same as when you get convicted for a crime and since you have the right to be your own counsel, you represent yourself. Yes, you have a right but were you even train for it? Using the court appointed attorney, or hiring a private attorney will most likely provide you with the best results.
In truth, there is a lot more that actually goes into repairing your credit than most people think. If you do decide to repair your credit on your own, make sure that you don’t simply use sample letters you find uploaded online or in books. Avoid using those generic forms to send to credit bureaus. If you plan to repair your credit on your own, make sure to put a firm plan in place. Learn the laws and familiarize yourself with your rights. Last but not the least, be prepared for a long fight.
Choosing Between Credit Repair Companies
You can repair your credit on your own, or you can hire a company to do it for you. The advantages of outsourcing this process is, of course, the time you would have saved from going through your credit history and attempting to verify all the information. This way, you also get to deal with someone familiar with the process, someone who uses specific tactics and techniques to get items removed from your credit report.
Pay attention to the parties a company opens investigations with. Find out who they are communicating with. Are they only communicating with the credit bureaus or are they communicating with the credit bureaus, collection agencies, and the original creditors?
Credit repair done by professionals has the added advantage of benefiting from the insight of experts in the industry. However, discerning between reputable credit repair companies is another matter that needs your careful consideration. When choosing between credit repair companies, you have to consider whether the credit repair service company is the right choice for you.
There are a couple different types of credit repair companies:
- The part time guy that does it out of his house — This might be the cheapest overall way to go but typically not the best. As with any part timer, the issue is that they are preoccupied with other things that may get in the way of them servicing you effectively. To get the best results, hire someone who does credit repair full time, one who has set procedures and techniques in place to get things removed from someone’s credit. Given the importance of good credit, it’s not the best idea to trust someone who can’t even devote their full time and attention to this. It’s also really important that they have an office presence and don’t work out of the home. Professionals work in professional environments where focus and efficiency is top priority.
- The monthly company – If someone is able to charge you for every month they work, would they even want to end the job? Such as in the case of a monthly-paid credit repair company. Would you continue hiring them if they have already fixed your credit? The answer is most likely a no. If they fix your credit, then you will cancel their membership and stop using them. Companies like this typically like to drag the process out. The caveat of most credit repair companies is that they only look through 1 or 2 negative items each month. This type of month-to-month service will only really be of use to you when you stick with the company for a long time. A lot of these guys will only dole out this kind of surface analysis and won’t really provide you with a comprehensive examination of your credit history.
- A pay-per-deletion company – This has got to be the best choice for you. A company that only charges you for results ensures that you are dealing with someone who will work hard in order to get the pay they deserve. When you deal with a pay-per-deletion company, you get what you pay for. If you do not get the work done, then you can practically keep your money. When you are under the terms of a pay-per-deletion company, make sure that you have an idea of the total cost of all the negative items you want deleted.
Making the Right Choice for You
Another concern when dealing with credit repair services is the nature of the companies involved in the business. A lot of scammers prey on unwitting victims, and it’s best to know what you’re getting into. Read up and be on the lookout for deals that seem too good to be true.
Always consider the type of company you’re getting in business with. In dealing with law firms for credit repairs, just because they have law in their title doesn’t always mean there are real lawyers working and reviewing your case.
Are you sure people who know finance are actually working on your account? And the same can be said for people who do credit services in their spare time: ask yourself whether or not you would best benefit from having people specialized and well-versed in the credit repair.
Check from Legitimacy
You do not want to just simply reveal your credit to anyone, especially one who has no intentions to help you. So, when looking for the best credit repair company, make sure to deal with a legitimate one. Find out if the company has an office presence, a website, or even company social media accounts. Are they registered with the BBB? Or are they a member of the National Association of Credit Service Organization? Do they have offer a guarantee for their services? These things would indicate the legal status of the credit repair firm you are dealing with.
Identify the Problem, Look for the Solution
There’s no quick fix to improving your credit profile. When trying to find the best credit repair service, it’s important to assess the type of problem that you have. Getting the best credit repair service will depend on how well a company’s strengths can address your needs.