If you’ve made errors on your credit report, a credit repair company can help you dispute them and get them removed. However, it’s important to understand what these companies can and cannot do before working with one. A reputable credit repair company should be upfront about their fees and services, and they should also provide you with a contract that explains in detail the work they will do and how long it will take to achieve results. If you’re not happy with the contract, you can walk away without penalty within three days of signing it.
While it is possible to clean up your credit yourself, many people find it easier to let a third party do the work for them. It’s a good idea to compare several different credit repair companies before choosing one, and sources such as Google Reviews, BBB and Yelp are a useful starting point. However, keep in mind that consumer reviews can be misleading and that there are a number of factors that go into making the best choice for your needs.
A credit repair company works by disputing items on your credit reports with the major bureaus (Experian, Equifax and TransUnion). Typically, they will start by ordering copies of your credit report and reviewing them for errors that could be lowering your score. Then they will send letters to the credit reporting agencies and creditors on your behalf, asking them to correct the inaccurate information. They may also offer you advice and tools on how to improve your credit, such as by paying your bills on time and keeping a low credit utilization ratio.
When choosing a credit repair company, it’s important to look for one that has been around for a while and has a good reputation. You should also consider their upfront and monthly fees, and whether or not they have a money-back guarantee. In addition, you should look for a company that states how many negative marks they’ve successfully removed from credit reports and what the average score increase is for their clients.
Although it’s possible to raise your credit score by yourself, this is usually not a quick process. It takes months, and sometimes even years, to fix mistakes on your report. However, if you’re not sure how to do it yourself or simply want to save the time and hassle, it may be worth the extra cost to hire a credit repair company.
While credit repair companies can help you, they aren’t able to remove accurate negative marks from your report, such as those caused by medical records, bankruptcy and identity theft. It is also possible to raise your credit score by yourself, such as by paying your bills on time, opening a new account and maintaining a low credit utilization ratio. It’s crucial to do your research before deciding on the right credit repair company for you. By asking the right questions, reading online consumer reviews and understanding what credit repair companies can and cannot do legally, you’ll be better able to choose the best option for your situation.