That three-digit number that can save you thousands of dollars in a lifetime, formally known as a credit score, is mighty important. It helps companies determine whether they will accept your loan application for a home, car and other consumer goods. Heck, your credit score can even give companies a reason not to hire you. Needless to say we can all agree that it’s important to have a high score, unless you pay everything in cash (way to fight the power). With so many daily life aspects revolving around credit scores emerged the credit repair business. These types of companies will often give the notion that they can help raise your credit score by 100 points over night. Or improve your score within 30 days or your money back guaranteed.
If only it was that easy.
With credit repair comes multiple questions. Here are common questions about credit repair companies answered with a nice bow on it! You can decide for yourself if you need a credit repair company working on your case.
Does a credit repair company work?
Yes……..well technically yes. A credit repair company will work with their clients to fight errors on their credit reports. By finding one error on a credit report can significantly improve the credit score. The credit repair company should gather credit reports from each of the three credit bureaus to confirm what errors may be on your credit. Once an error is found the company will request certain documentation in attempt to get that error removed.
Do credit repair companies always work?
No, credit repair companies may offer a guarantee but doesn’t mean an error can be removed. It depends on one factor. If the company, that is reporting the error, will work with the credit repair company. Not all companies work with repair companies and some companies will.
How do I know if I need a credit repair company?
The first step to decide is pulling your own credit reports. You can pull your reports free annually right here. If you realize any potential errors and quite frankly don’t want to deal with the matter, a credit repair company maybe for you. In addition, if you have a complicated situation such as divorce or identity theft, then hiring a company can be a smart choice.
Will the company do all the work?
The company will do a good amount of work to earn your money. That will consist of ordering reports, talking on your behalf to loan companies and being an avid fighter in your corner. However, the client must provide required documents and help within reasonable standards.
Can I raise my credit score myself?
Hell yes you can! Raising your own credit score takes time, dedication and focus. It’s 100% possible and may require a game plan on what to tackle first. Paying down debt and steady payments can do wonders for your score. Check out my post on how a credit score is calculated to see what is weighing you down.
Can I remove errors by myself?
Again I say, hell yes you can! By pulling your credit reports you can find any potential errors and contact the company. The next step will be gathering the documentation they need to remove the error. Afterwards you will want to keep in contact until the error has been removed. Keep in mind that with a repair company you will still be doing some leg work yourself anyways.
Is the price worth it?
I reviewed five credit repair companies and the average is about $60 – $100 on a monthly bases. Some companies may require a contract for a set period of time. To determine if the cost is worth the services will depend solely on you.
How can I find a reputable company?
Start with the big dogs and look for their rating on the Better Business Bureau and go over customer reviews. Look for red flag words such as scam or ripoff. If you find smoke best believe there is fire. In addition, lookup the history of the company for how long they have been around in the field. There are good credit repair companies and more overnight companies. Pick a company with caution to save time and money.
My personal review is, a credit repair company should be used by those who have a complicated credit situation, fraud or do not feel comfortable with dealing with credit scores. It goes without saying to review your budget to ensure the monthly payments are affordable. I can’t imagine many situations where it is detrimental to increase a credit score within 30 days, which is the main appeal for most credit repair businesses. Move with caution before you sign any contract.
Post your comments if you have any experience with credit repair or any questions I may have missed.
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