Are you struggling to increase your credit score? If so, you’re not alone. Millions of Americans face a challenging credit climate, but it doesn’t mean you can’t improve your credit. Many consumers find that their experiences with credit repair companies aren’t always wholesome and helpful. In fact, some companies make false promises about what they can do for your credit score and how much it will cost you. Let’s take a look at the truth behind these types of organizations.
What do Credit Repair Companies Do?
Credit repair companies help you to improve your credit score by removing negative items from your credit report. These negative items could include anything from incorrect information to a recent bankruptcy. There are several ways that credit repair agencies improve your credit. They might negotiate with your debtors to get them to report your payments accurately. They might correct inaccuracies on your credit report. They might add positive information, such as a creditworthy cosigner. They might get your debt discharged in a Chapter 7 bankruptcy and removed from your credit report.
What You Should Know Before Hiring a Credit Repair Company
Now that you understand how credit repair companies work, let’s take a look at things you should know before hiring one. First, understand that these companies aren’t a one-stop shop for all your credit woes. Credit repair companies can remove negative items from your credit report, but they won’t add positive items. To get a higher credit score, you’ll need to add positive information to your credit report. But how do you do that? By taking out a loan, or opening a new line of credit. If your credit score is low, you can consider applying for a secured credit card. To do this you’ll make a small security deposit and, in exchange, you’ll get a credit card that can help you rebuild your credit. Credit repair companies won’t guarantee you a higher credit score. If you’re looking for a quick and easy way to achieve the perfect credit score, a credit repair company might not be the best option for you. You won’t know if the work they do will positively affect your credit until you see the results on your credit report. Most credit repair companies will however work with you as long as it takes to get your credit in good shape.
Tips for Finding a Reputable Credit Repair Company
1) Ask for a Free Consultation: If you’re not sure how to find a reputable credit repair company, start by asking for free consultations. At these meetings, you can ask the credit repair company questions. You can also ask them to explain how they work and how much the process will cost you.
2) Look for Companies That Offer a Guarantee: Reputable credit repair companies will offer guarantees on their work. If they don’t improve your credit score by a certain amount, they’ll give you your money back.
3) Ask About Their Track Record: How many clients has the company helped? What percentage of people have had positive experiences with the company? How many clients have received refunds? You don’t want to hire a company that doesn’t have a good track record.
Costs Involved With Credit Repair Companies
When it comes to cost, you have a few options for credit repair companies. You can hire a company to repair your credit for a one-time fee. You can also sign a contract with a company that will repair your credit for a monthly fee. Some companies will charge you a one-time fee and then a percentage of your increased credit score. If your credit score goes up by a certain amount, they’ll refund you some money. If you pay a one-time fee, you’ll pay the same amount regardless of how much your credit score improves. If you choose a company that charges a monthly fee, the amount you pay will depend on how quickly you want your credit score to improve.
Final Words: Is Hiring a Credit Repair Company Worth It?
When it comes down to it, only you can decide if hiring a credit repair company is right for you. There are a lot of factors that go into hiring a credit repair company. These include how much your credit score will improve, how much time it will take to improve your credit score, and how much the repair will cost you. If you have the time and patience to work toward a higher overall credit score, a credit repair company might be a good choice for you.
