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Should You Use a Credit Repair Service?

When we fall into bad debt or are not able to pay our bills in time, we can easily damage our credit score. In that case, it is important to repair it to get back on track with our finances and get access credit once again. You can proceed to fix your credit score by yourself. However, finding the best credit repair company can be of great help especially if you do not know how to go about it.

A bad credit score will send a bad report to your lenders. For that reason, you should work towards repairing it. All you need is to get your report from credit reporting agencies and analyse it. Every detail in the report counts and therefore, you should check the accuracy of the information to get started. You can dispute any errors that exist and then proceed with the other details.

Help from Credit Repair Services

A credit repair service is a company that handles credit repairs for consumers with bad credit ratings. However, borrowers should be alert lest they fall into fraud in the name of credit repair services. All the same, there are legitimate organizations for credit repair and that is what you need.

It is important to note that these services come at a fee. Therefore, borrowers should make sure that they look into these details before engaging any credit repair service. The Federal Trade Commission regulates and controls credit repair services. Part of its mandate is to make sure that these services follow the law.

The work of credit repair services is not to remove any negative information from your credit report. If anyone offers to do that, that is a red flag. This is a sign that you are about to get scammed. Well, a credit repair service can only help you file a dispute for any inaccurate information contained in the report. Other than that, they have no authority to interfere with any other correct detail in your report.

Engaging a Credit Repair Service

A credit repair service must give you a sum of chargeable fees and an estimated period of when to expect results. You should also have the option of cancelling the services within a stipulated period without any charge. As a borrower, you must take note of these requirements to engage in safe credit repair services.

The work of a credit repair service is to help you understand and analyse your credit report. You can check the accuracy of the report together and file a dispute should there be inaccuracies in the reporting. Once this is done, you can start working on your current credit accounts.

What to Expect from Credit Repair Services

After engaging a reputable credit repair service, they should act on your behalf to get you all the help you need. Here is what the credit repair companies will do for you:

  1. Confirm the accuracy of your credit reports by studying all the information in them. Part of this includes a check on the duplication of information. They will then file a dispute should they find errors in the report. These may include:

  • Accounts that are not yours

  • Negative entries of someone with the same name as yours

  • Legal actions such as bankruptcy that do not belong to you

  • Old negative marks that are not relevant

  • Unverifiable debts on your report

  1. Coaching you on how to deal with your credit accounts to mitigate damage on your credit report. The service should be realistic without giving any guarantees or asking you to lie about anything. Simply, there are no shortcuts to getting your credit report on track. Follow the due procedure for the successful improvement of your rating.

Remember that you can always do this on your own. The credit reporting agencies can give you the information you want for free.

Final Thoughts

Using a credit repair service to improve your credit score is an option for those who have fallen into bad credit. Therefore, you can use these services if you want to correct your credit score with the help of experts. However, do not expect them to remove accurate negative details from your report. All they can do is to help you analyse your report and coach you on what to do.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes

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