Featured Finance

Credit Repair Specialists – Can Help Or Hinder

Many people who are overwhelmed with credit issues want to just throw up their hands and let someone else take care of it for them, that’s where credit repair specialists come in. There are a lot of companies that will help you sort out all your credit issues, but before you go out and hire one, here are some things you need to take into consideration.

Most people don’t realize it but there are actually several credit repair secret tips that you can use to help undo the damage that’s been done to your credit score. None of this information is widely advertised, I mean, why would it be? An uninformed consumer is a sitting duck to all the threats and harassment of a debt collector. Don’t ever forget though, that you do have rights and that debt collectors have strict rules they have to follow.

The first thing you want to do is make sure that whatever negative things are on your credit report are accurate. It’s important to check your credit reports, from all three credit bureaus, at least once a year. If you find a mistake, contact the credit bureau immediately in writing and request that it gets corrected. This simple tip can help you raise your score and get rid of inaccurate information that has been costing you money in higher interest rates.

When you contact a credit bureau keep a detailed file as to the date you sent the letter, sending it certified may be a good idea, as well as a copy of the letter you sent them. Unfortunately sometimes the credit bureau isn’t right on top of everything and it’s a good idea that you keep track of everything in case they try to jerk you around.

For one thing, before you pony up any money you should just take matters into your own hands and do it yourself. At least get your own credit reports and check for errors. If you want help after that point you can always hire someone. Make sure you get a report from all three credit bureaus: Experian, Equifas, and Trans Union. Don’t assume that they will all have the same information or that if one report is accurate they will all be accurate. Information can vary greatly from one company to another so check all three, carefully, for any mistakes.

If you are convinced that hiring outside help is the only way to go, keep this information in mind:

1. You should steer clear of any company that ‘promises’ you that they can remove negative items from your credit report if they are accurate. No matter how painful it might be you have to face the fact that accurate information stays, sometimes up to ten years. If a company claims they can remove accurate information keep looking, they are lying to you.

2. Make sure that you have a written contract in place that explains all the things the company will do for you as well as how much it will cost you. Some companies charge a one time up front fee, other’s will set up a monthly payment plan. Just make sure you read over the contract and that everything is spelled out. You have three days to cancel a contract, in most states – check with yours, after the day it’s signed.

3. Be sure that before you waste time and money you are committed to the plan to get your credit back on track. In almost all cases, it will take determination and even a little sacrifice to improve your credit score. If you’re not 100% committed to taking all the steps necessary you’ll just be throwing good money after bad. It’s gut check time, if you’re not ready, don’t pay for someone to help.

4. Don’t let a company try to tell you that they can set up a second credit file. That is fraud and even if they were able to do it (which in most cases they can’t) you could get in serious trouble.

When it comes to getting back on stable financial ground, you really can do it yourself with a little time and effort, but if the process just seems too overwhelming and you want to hire credit repair specialists, just keep the tips above in mind so you don’t jump from the frying pan into the fire.

Related Articles

Close