Should You Hire a Credit Repair Company or Fix Your Credit Yourself?

Fixing your credit is usually one of the first steps of those who are worried about being approved for a mortgage, car loan, or other form of financing. After all, your credit score can potentially cost or save you hundreds of thousands of dollars in interest rates, insurance premiums, etc. over the course of your lifetime. So if you’ve recently been denied a loan or know that your credit score needs some TLC, where do you start?

This is where credit repair companies come in.

Benefits of Using a Credit Repair Company

There are pros and cons to repairing your own credit and hiring a credit repair company, so let’s look at some of the ways a credit repair company can help you more than you may be able to help yourself.

• Experience. The experts who do this every day have already seen cases like yours. They’ve talked to the credit bureaus, they know how to make a strong case and negotiate repayment terms. They know the right steps to take, and how to get things done.

• They’re paid for results. Reputable companies are paid for results. They spell out exactly what they will do for you, and the associated fees. This compels them to work as hard and quickly as possible for you.

• They save you time. Are you familiar with the Fair Credit Billing Act? How about the Fair Debt Collection Practices Act? Chances are, no. If you go the DIY route, you’re going to have to spend time researching these laws that are designed to protect you, but it will take some time for you to not only come to understand them, but apply them to your benefit.

• They’re respected. As legal experts and professionals in their field, those who work on your case at a respected credit repair company are just that – respected. They are likely to be familiar with those who work for the credit reporting agencies and several collection and lending companies, so they can negotiate better deals and be taken more seriously than an average Joe.

• They have perspective. Money problems can cause a lot of emotional distress. Maybe you are going through a divorce and trying to get the car payment in your ex-husband’s name off of your credit report immediately. But you may have more pressing issues that could improve your credit more than that car payment. A credit repair company uses logic and reason to make sound decisions in the right order that will save you the most money and repair your credit using the most effective route.

Benefits of Fixing your Own Credit

When it comes down to it, you are perfectly capable of repairing your own credit, if you go about it the right way. Here are some of the benefits of taking your credit repair into your own hands:

• The law is on your side. As stated above, there are several laws in place to protect consumers from fraud and misreporting on your credit report. Although it will take time, learning these laws will help you greatly to improve your credit and make a strong case. It will not be wasteful information to have on hand.

• Credit bureaus must listen to you. Credit bureaus are given 30 days legally to investigate your claim, whether it’s made by a credit repair company or yourself. However you must provide them with enough information, documentation, and evidence for them to make a decision.

• Save money. Repairing your credit is largely about saving money in the long-run by qualifying for lower interest rates, better insurance premiums, etc. So if money is tight and you have the time to invest in your own credit repair, you will save money on the fees required by a credit repair company. However, for many Americans, time is money, and the hours and hours of time needed to create a strong case, write an effective dispute letter, keep up on deadlines and respond appropriately may not be worth it.

There are several credit repair companies out there with big claims and promises, so make sure to check out the BBB rating and reviews before you decide on a credit repair company to make sure you’re in good hands.

If you’d like to learn more about a DIY approach to credit repair, check out our tips and tricks section. If you’d like to learn more about hiring a credit repair company, schedule a free consultation today.