Not all credit repair companies are created equal. In fact, it’s all too easy to be scammed by a company that promises fast credit repair because you’re so desperate to dig yourself out of debt. But here, you’ll learn how to identify a good credit repair company from a bad one and what you can expect in regard to how long it can take to repair your credit and what types of services these companies offer.
How Credit Repair Works
Good credit repair companies will initially pull your credit reports from all three of the major credit bureaus in order to pinpoint your credit issues. Once they have identified all of the errors on your credit report you’ll need to provide any supporting documentation such as receipts of payment and any correspondence you’ve had with the company or creditors.
The credit repair company will then to get to work contacting each company and the credit bureaus in order to determine whether or not an error has been made. If so, they can request that these errors be removed from your credit report immediately.
Next, you’ll need to sit down with a credit counselor and go over your finances, and your debt. Together, you’ll come up with a plan regarding how to slowly pay off your debt in order to boost your credit score. This can be a lengthy process. Most people don’t understand that it takes an average of six months to repair credit, however, this can also heavily depend on how much debt you’re dealing with and the amount of money you can set aside to pay off your debt.
What to Look for In A Reputable Credit Repair Service
Always avoid companies that promise they can repair your credit in a matter of weeks. Any reputable company knows that this process can take several months.
Look for a company that offers resources designed to help you understand how credit and credit repair works and what you can do to keep your credit rating up.
This can include informational articles and podcasts on their site, and credit repair advisor assistance, and a credit repair counselor who can go over past mistakes and discuss how to avoid bringing your credit score down.
You should find a company that’s willing to work with your budget. Avoid companies that set a flat fee upfront.
The price for this type of service can vary from company to company and can also depend on the type of services you’re looking for. Before you commit to a company make sure you understand what you’re signing up for and what you can expect to pay on a monthly basis.
DIY Credit Repair
Any ethical company will tell you that repairing your credit on your own is totally possible. If your financial situation is fairly simple and involves only an error or two on your credit report, then you may want to tackle this issue instead of having a credit repair service take care of it for you.
But if you’re on the brink of bankruptcy then you can definitely benefit from the services of a reputable company who can help you organize your debt and get to work repairing your credit.
Supplementing Your Income
During the credit repair process, you’ll need to set aside as much money as possible to put toward your debt. If you find yourself living from paycheck to paycheck, with most of your income going toward paying off old debt, read our review on CB Passive Income to learn what else you can do to boost your monthly income and get out of debt faster.