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Your credit score plays a great role in your financial situation. A high credit score means companies can trust you, giving you easier access to lending services like mortgages and car loans. A low credit score, on the other hand, can mean denied loans, higher interest rates, and even difficulty finding a place to rent or buy a home. If your credit score could use some improvement, you may be wondering if hiring a credit repair company is worth it. As we continue our series on credit repair, we’ll answer that question for you!
What is Credit Repair?
Credit repair is the process of working with credit bureaus and creditors to remove inaccurate, incomplete, or unverifiable information from your credit report. When you have negative marks on your credit report, it can be tough to get approved for a loan or even rent an apartment. Credit repair companies can help you dispute errors and negotiate with creditors to get them removed from your credit report, which can make a significant improvement on your credit score. Here’s a video explaining the laws around negative item removal and your credit report:
How are Credit Scores Calculated?
Your credit score is a three-digit number that reflects your creditworthiness. It’s calculated based on information in your credit report, including your payment history, debt levels, length of credit history, and new credit inquiries.
How Does Credit Repair Works?
Credit repair services work to improve your credit score in a few ways. They first look for any inaccurate, incomplete, or unverifiable information on your credit report and dispute it with the credit bureau. They also work to get negative marks removed from your report, like late payments, charge-offs, and collections accounts. Finally, they can help you build a positive credit history by adding positive information to your reports such as on-time payments and long-term loans.
Is Credit Repair Worth It?
The answer to this question depends on a few factors, like how bad your credit score is and how much work you’re willing to do yourself. Generally speaking, if you have a lot of negative marks on your credit report or your score is below 600, hiring a credit repair agency may be worth it. They can help you dispute errors and remove negative information from your reports, which can improve your score significantly. If you have a good credit score already and just want to maintain it, then doing the work yourself may be more cost-effective.
No matter what, always remember that improving your credit score takes time and effort. But with the help of a credit repair advisor, you can get there faster!
Can I Repair My Credit Myself?
Yes! You can do credit repair works on your own by following these steps:
Check your credit report for errors – One of the best ways to improve your credit score is to make sure there are no errors on your credit report. Dispute any inaccurate or incomplete information with the bureau that reported it.
Reduce your debt levels – High levels of debt can lower your score. Pay down as much debt as you can and keep balances low on revolving accounts like credit cards.
Build a positive credit history – Add positive information to your credit report by making on-time payments and keeping debt levels low.
What Can Credit Repair Companies Do with Your Credit and Credit Score?
Credit repair companies work to improve your credit score by removing inaccurate or negative information from your credit report. This can result in significant improvements to your score, making it easier for you to borrow money at lower interest rates. If your credit is below 600, hiring a credit repair company may be worth it. However, if you have a good score already, doing the work yourself may be more cost-effective. Remember: improving your credit score takes time and effort but with the help of a professional, you can get there faster!
Are Credit Repair Companies Worth It?
There’s no easy answer when it comes to whether or not hiring a credit repair company is worth it. Ultimately, it depends on your specific situation and how bad your credit score is. If you have a lot of negative items on your credit report that need to be disputed, then a credit repair company can be a big help. They can work to get these items removed, which will improve your score over time. If you have a good credit score already and just want to maintain it, doing the work yourself may be more cost-effective. However, no matter what, always remember that improving your credit score takes time and effort!
Tips on Hiring a Credit Repair Company to Avoid Credit Repair Scams
Credit repair scams are rampant. So when hiring for a credit repair services company, it’s important that you are careful about who to trust. To help you pick the right credit repair company and avoid being a victim of these scams below are some tips that you might want to keep in mind.
- Do your research and ask around for recommendations.
- Check to see if the company is licensed and insured. Legitimate credit repair organizations are licensed and insured. If they can’t prove these, then walk away at once.
- Make sure you understand the terms of the contract before signing anything.
- Get a copy of your credit report from each bureau before hiring a credit repair company so you can track their progress.
Here’s another webinar that completely covers the many signs of a scammer you should be aware of:
Next up in our series on credit repair, we’ll cover negative items in even more detail. We’ll give you the tools you need to DIY your outreach to the three major bureaus and fix your score yourself, so check out the Trussville Tribune next week for the final steps in your credit repair journey.