There are millions of Americans with credit that would be considered bad or poor, which is a score that is 601 or less. Many of them consider credit repair as a way to improve their score. There is a way to repair your credit on your own, but there are credit repair companies that can help you as well. Are they worth the money? Let’s look.
What Exactly is Credit Repair?
Usually the term “credit repair” is referring to the process of removing errors from your credit report. Errors are more common than you think. If you don’t have time to do this on your own or there are more errors than you can handle on your own, you can hire a company to help you.
How Does It Work?
You have a legal right to certain standards when it comes to your credit report. It must be:
- All claims substantiated
If you feel that any of these rights are violated by the way something is reported on your credit from any or all of the credit bureaus, you have a right to dispute it. You can do this on your own or you can hire a company to represent you.
How Can a Credit Repair Company Help?
This is the process that a good credit repair company will follow when helping you dispute records on your credit report:
- Pull all three credit reports
- Identify errors
- Ask you for substantiating documentation (if you don’t have any because of identity theft, they can help you with this)
- File disputes for anything that is reported in error
- Make sure they are removed within a reasonable time
How Much Will It Cost?
How much a credit repair company charges for their services will depend on several factors:
- The reputation of the company
- Where you live
- The extent of repair needed
You will receive a contract once they determine cost. It is illegal for them to charge you anything until you receive their services. Make sure you read the contract carefully before you sign it.
Is a Credit Repair Company Worth It?
Only you can answer this question. Yes, you have the option of filing disputes for the erroneous listings on your credit reports. However, if you don’t have the time to do this or the amount of repair needed is too much to handle on your own, hiring a company may save you a lot of time, making it worth the cost. However, you should always make sure you are hiring a reputable and trustworthy credit repair company.