Are you bewildered by the many options for credit repair that exist on the Internet? What can a credit repair company actually do for you?
First, a credit repair company can help you if you have legitimate errors on your credit report. If you’ve got actual errors, as opposed to instances where you didn’t pay your bills on time, a credit repair company will be useful. These could be mistakes in reporting or little errors in your personal information. A lot of things can affect your credit score, so if you believe there really are errors on your report, taking advantage of a credit repair company would be your best bet.
Another instance where credit repair companies would be able to help is when you have errors that can’t be verified. Did you know that every detail in your credit report needs to be verifiable? If there’s a negative item from a lender who was bought out or went out of business, a credit bureau wouldn’t be able to verify the information on your report with them. When this happens, the credit bureau is required to omit it from your credit score. A credit repair company can point these instances out to you and raise your score.
Credit repair companies know the tricks of the trade and can negotiate with lenders on your behalf. Unfortunately, not all lenders are willing to work with credit repair agencies and will not negotiate. However, when those lenders who are willing to communicate, credit repair companies will do their best to fix your credit.
Of course, not everybody out there on the Internet has your best interests at heart. Watch out for people who promise to fix your credit score but seem shady. In particular, keep an eye out for these warning signs. If a company does any of the following things, back away. Doe they want you to pay up front for credit repair services before they do any work? Do they discourage you from contacting the credit bureau yourself? Do they fail to disclose your legal rights? Or do they tell you to do something that sounds illegal, like create a new credit card identity or disputing correct information on your credit report? You don’t want to be involved with any credit repair company that encourages you to do something illegal. Remember—bad credit goes away after seven years, but a criminal record stays forever.