So you’ve just applied for a credit card, a car loan, a mortgage or even an apartment, and were unfortunately rejected. If you’re struggling with bad credit, you are not alone. A recent study by CFED (Corporation for Enterprise Development) found that 56% of American consumers have subprime credit scores. However, people tend to never concern themselves with their credit score until it’s too late.
If you find yourself in these conditions then you may need to repair your credit. Repairing your credit can be an uphill battle, but with the right plan, it’s possible to improve your credit health over a period.
But first let us define what credit repair is.
What is credit repair?
Credit repair is the process of repairing a bad credit report to raise your credit scores. It includes finding questionable negative information on your credit reports, challenging the information in question, and following up with the credit bureaus and to get the negative information removed from your credit reports.
There are two common approaches in repairing credit: using a credit repair service to accomplish your credit repair goal or you want to take the project on yourself, otherwise known as Do It Yourself (DIY) credit repairing.
The Facts On Repairing Your Own Credit
You can fix your bad credit yourself, it’s true. But, there are too many tedious tasks that are involved in disputing bad credit marks on your credit report. The main issue with attempting to dispute listings on your credit file on your own is your limited knowledge of credit reporting legislation that would lead to such listings remaining in place or being removed.
If you don't have time to sit down, write letters and go through the credit reports to see what you can dispute, then a credit repair company is probably for you.
Why Pursue Credit Repair Services
According to a study, of those who have a bad or fair credit score, 30 percent say they are prevented from taking an action on their credit score because it is too expensive to fix it. However, hiring a credit repair company to do the work for you may cost far less than most realize — plus having professionals who are highly experienced in improving the credit scores may be more advantageous in the long run.
There are multiple credit repair services available to help you fix your credit problems. A credit repair service will look over your credit report and then dispute anything that you may believe is not accurate. Be wary of some credit repair services that make false claims, though there are legitimate firms that will work to improve your credit and make an amazing difference in your overall credit rating. They know how to take care of your credit report and get satisfactory results.
Why Repairing Your Credit Isn’t Working
Trying to repair your own credit score can be challenging especially when you are inexperienced in doing so. When you choose a credit repair service wisely, you can see a significant difference in your credit rating. With the help of an experienced, professional credit repair service, you can improve your credit score by several points. The better your rating, the lower interest rates you would be charged. On a significant purchase, such as a home or a vehicle, lower interest rates can save thousands throughout the years.
You don’t have the time. Effective credit repair has a lot to do with deadlines and timing. This is also one of the main reasons why the services of a credit repair company are in great demand among the people who have a poor credit rating. Trying to improve your credit score is a long process and handling it on your own will require you to devote your valuable time. But with hiring a professional repair services, they will patiently look through all of your related problems and help you to solve these matters efficiently and effectively. These firms also have good relationships with creditors. This means that they can resolve issues easily that you could not have done on your own.
You don’t know the laws. The professionals of a credit repair company are up to date on all policies, procedures and technology to ensure their clients success in achieving the ultimate goal, an improved credit score and accurate credit reports across the three major credit bureaus. Thorough knowledge and understanding of these laws allows credit repair companies to help clients get the credit they deserve. Credit professionals will leverage federal laws in your favor.
You don’t have the money. Making the choice of fixing your credit all by yourself can cost you more than you think. Most people think paying off all of their debt will magically improve or increase their credit score. Most people find out that this is completely wrong AFTER they have paid off all of their debt. A credit repair company can show you which debts are worth paying and how much you should actually be paying to resolve or settle an account. You must consider the overall cost of repairing your own credit, the amount of time it might take and also the possibility that you may not make much progress. The sooner you get help from a trustworthy credit repair company, the sooner your credit score will progress and help to lower your interest rates. It will be easier for you to fulfill your goal at an affordable cost.