Is Legit Credit Repair Real?
If you find yourself with a credit score lower than what you really want, it can be all too easy to jump at what appears to be the first chance to fix your credit. The sad truth of the matter is that many websites which post articles on credit scores or which have links to credit card companies often don’t have your interests in mind. Some of these ads might boast the ability to help you repair your credit instantly. There are many scams out there, but there is also such a thing as legit credit repair. The trick is to know how to identify which ones are which.
If you are able to do this and find a great credit repair company, you can avoid getting scammed and you can start saving thousands of dollars in the long run. It’s important to know how to distinguish the legit credit repair companies from the scams.
Debt management organizations
Credit repair agencies will help you improve your score in one of two ways. The first is by helping you manage and pay off your debt. The second is by disputing any negative items on your credit report which are not true.
First of all, repairing your credit score by managing and paying off your debt has no shortcuts. This is the type of credit repair that usually involves a lot of hard work and a lot of time. If you are truly serious about improving your credit score you might need to get better about managing her finances. These are the groups I can help you do that. Most of the debt management organizations are nonprofit which means that their goal is not to make money off you like other companies but to help you and educate you.
These groups encourage you to engage in self-help so that you can repair your own credit. This starts with understanding what makes up your credit score and what things build better habits and how you can repair your credit in the long-term. All things in life worth having will take a lot of effort and a lot of time. Nothing worth having is acquired easily.
What it’s like working with them
When you work with these companies, they’ll first want to get a sense of your comprehensive financial picture before they advise you. So, they’ll probably start by looking at your credit. And if your credit is really bad, chances are you have that. Effectively managing that that will help you to increase your credit score. These organizations help you set up repayment plans with your creditors. They act as a Coordinator between you and the creditors. They can help you lower any interest rates are facing and help you to change your total monthly payments.
Another perk to setting up a plan with a debt manager is that they might let you pay off your debt with a lump sum. When you pay off your debt with a lump sum, something that you can typically do if your bills have been sent to collections, you won’t have to keep track of dozens of bills or each different due date. Instead you can have it managed in one day.
For a lot of people, especially people who are faced with bad credit and a lot of debt, working with different companies, getting everything straight, sifting out old stuff from current stuff and figuring out what has to be paid when is exhausting and terrifying. When you have somebody that you pay to act as a Coordinator on your behalf, it takes away that fear.
Disputing negative items
Other credit repair agencies help you to dispute items on your credit report. These companies look over your credit report from all three of the credit bureaus and then they draft dispute letters to object any negative items. By law you have the right to dispute negative items on your credit score. You can dispute negative listings that you think are untimely, incomplete, unclear, unverifiable, or inaccurate. If the issue cannot be verified then it has to legally be removed from your credit score. One example of what an unverified thing means is, in an instance where one of your creditors when out of business but there’s no way for the three credit report euros to verify any item on your report from the creditor so it has to be removed.
Again, the nice thing about having agency represent you is that they are persistent. If these negative items are not removed immediately they will continue to dispute them in order to maximize the chances of getting the outcome you want. These companies will charge you an initial startup fee which can range from anywhere between $20 and $100 but the average fee is about $60. Some of them won’t even let you pay until you get results while others have a money back guarantee if you choose to no longer use their services.
Avoiding the scams
No matter which method you choose to improve your credit score, check the companies by name. Simply Google them and see if they have a long history, see if they have a lot of consumer feedback. Check and see if they have a Better Business Bureau rating. Take into consideration how you heard about the company. It was a late-night television advertisement it might not be reputable. If the company has been around for 20 years, chances are it’s a legit credit repair service.