There are several negative implications to having a low credit score and a negative credit history. If you are dealing with financial struggles like these it’s natural to want to consider all your credit repair options and credit repair services are one of them.
However, these services may be expensive and they may not always get you the results you want. Hence it’s always a good idea to be well aware of the benefits and drawbacks of opting for credit repair services. Read on to learn more.
Understanding Credit Repair
The most important thing to understand when it comes to credit repair is that it cannot remove negative marks from your credit report. Credit repair essentially involves rebuilding your credit to become eligible for loans and other amenities again.
It is the process of restoring or correcting your negative credit score and making it positive again. This can be accomplished by undertaking several steps including identifying mistakes or errors in your credit report and getting them corrected. You may also have to remove negative items from your credit history. Credit repair can happen through the following steps:
- Identifying accounts that are not yours in your credit report
- Identifying debts or loans that are time-barred or that have already been paid off
- Errors, misspellings, or entries that actually pertain to someone else who has a similar name as yours
- Negative items that are outdated and no longer need to be included
If you find any of this information in your credit report, you can dispute it. Credit bureaus typically take around 30 days to investigate the issue.
Should You Opt for Credit Repair Services?
Credit repair services are considered the easiest way to rebuild credit. But this may not always be the case. In fact, as per the Credit Repair Organizations Act, it is mandatory that credit repair companies give clients an estimate of how long it will take for them to get the credit repairs done. Additionally, these companies should also give clients clarity on the costs involved. You will pay a monthly fee for the service and the process can sometimes take up to a year.
Most people believe that credit repair can only be done by professionals and companies who work in credit repair. However, this is a misconception. It’s vital to stay clear of companies who promise and guarantee that they will remove negative information from your credit report. Some companies also promise to help you create a new identity using a credit privacy number.
How You Can Repair Your Credit Yourself
There are a few things you can do to repair your credit yourself:
- Analyze your credit report in detail and find errors yourself
- Dispute the errors by communicating directly with credit bureaus
- Be cautious with your available credit and pay your bills on time
While the credit repair process is challenging, you can repair your credit yourself with careful planning and analysis.