Whether you want to refinance your mortgage, apply for a new loan, or are on the market for a new credit card, you need to make sure your credit score is good. Believe it or not, bad credit can hurt your career aspirations or prevent you from launching a business. It will put you under severe financial stress.
All too often, people fail to take the necessary steps to improve their credit. These individuals are suffocated by high-interest rates, which can lead to bankruptcy or loan defaults. Fortunately, there are things you can do right now to help your financial situation.
Partnering with a reputable credit repair company is a great starting point. The best credit repair companies will help you increase your credit score and will fight tooth and nail with the three credit bureaus on your behalf.
What Can a Reputable Credit Repair Company Do?
A respected credit repair company, such as Lexington Law, will help you remove negative items from your credit report and dispute errors. To do this, your selected credit repair company will file formal dispute letters with all three credit bureaus: TransUnion, Equifax, and Experian. It is important to note that most credit repair companies can help you with charge offs, collections, foreclosures, repossessions, judgements, bankruptcies, and more. Ultimately, a credit repair company wants to increase your credit score.
Credit repair companies also provide you with tailored credit advice, so you know what is wrong on your credit report. They are committed to helping you understand the complexities of your credit and providing you with action-oriented advice so you can improve your credit.
Credit Repair Scams: How to Spot Them
While there are a handful of reputable credit repair companies, there are also some out there trying to scam you. However, these scam artists are easy to spot and avoid if you do your due diligence and read customer reviews. To help you avoid these scams, here are two tips.
- Avoid One-time Fees: The credit repair industry does not operate under a one-time fee, but rather through a monthly subscription. If a company offers to fix your credit and all they charge is one-time, flat fee, then they are doing nothing more then trying to scam you. Repairing your credit does not happen overnight. It takes a few months of hard work. And consistent interaction between your credit repair company and the three credit bureaus as they resolve your issues on your credit report.
- Guaranteed Results: A credit repair company cannot legally guarantee results. The Credit Repair Organization Act (CROA), protects consumers and was enacted to ensure these companies do not make false claims. Remember, we all have different credit problems, some more severe than others. There are some issues a credit repair company cannot fix, such as paying off debt.
Credit Repair Companies: Are They Worth It?
While you can certainly implement a ‘do it yourself’ credit repair strategy, this is hard and time-consuming. A DIY approach requires you to file your dispute letters with the three credit bureaus, which is challenging to do without any experience or guidance. However, if you want to repair your credit and would like a team of professionals to do it, then working with a top credit repair company is a great solution.
Even the slightest increase in your credit score can save you thousands of dollars. It will help you qualify for a loan with a competitive interest rate and will allow you to apply for a new credit card that has great rewards.
