Do Credit Repair Companies Really Work?
Having better credit is the main purpose for many of us. Credit scores and credit reports are highly effective in economic decisions that influence our lives. Receiving a loan, minimum interest rate, affordable premium insurance, and even getting a job can be affected by our credit reports.
For people who have poor credit scores and reports, credit repair services may be tempting them as a way to solve credit problems. There are a huge number of credit repair companies that work to solve credit-related issues. But a question always comes forward: Do Credit Repair Companies Really Work?
Well, the short answer to the question is yes, they do. Initially, they will review your credit reports with a repair specialist to see if they would be able to help you or not. If they are not able to accomplish the job, they will let you know. However, In this write-up, we have shown which ways credit repair companies work. So, stay with us and keep reading.
What Credit Repair Is
Credit repair is when a third-party credit repair organization like Strong Credit Repair, or credit services organization removes information from your credit reports in exchange for money. The main goal of these companies is to help improve your credit score. Credit repair is allowed at the central level and almost in every state.
There are some credit repair companies that claim their services are premeditated to assist consumers clear wrong or unjustifiable information from the credit reports. On the contrary, many credit repair companies attempt to have negative but accurate information that is removed from credit reports before it would certainly fall off a credit report.
How Do Credit Repair Companies Work?
Credit repair companies do really work to improve your poor credit score and reports. The entire procedure is done in 3 different steps. In this segment, we have demonstrated those steps that will clarify how they work.
1. Free Assessment
When you contact a credit repair company and they start working for you, initially, they take your credit report off from 3 different organizations [Equifax, Transunion, and Experian]. After that, a repair specialist reviews your entire report to see if they would be able to help you or not. If you hold negative information that could be engaging to a poor credit score, then you are a selective candidate for repair.
2. Figure out Junks to Legal Action
After the free assessment, the team of the company reviews your credit reports in detail to define possible errors and mistakes. This can take a couple of days to complete as they inspect multiple things such as payment history mistakes, fake accounts, and non-extant items.
If they find any errors in your reports, they will gather documentation that you possess which will support your legal action. After getting the documentation, they’ll forward it to the three organizations and work with them to contemplate if the item/items should be eliminated.
3. Review Each Bureau’s Report
The prominent companies check all three reports from each of the three organizations because they might not hold the very same information. Data furnishers are not the same in the above-mentioned three credit reporting agencies. For that reason, industry experts call banks, savings and loan institutions, credit unions, credit card issuers, and mortgage lenders. All furnishers don’t report to all three organizations. If the company you hire doesn’t inspect all three reports individually, mistakes or errors could be missed.
We like to assure you that the entire procedures that a third-party company does can also be done on your own. You can even accomplish the job without spending money. However, truth be told, doing the same work on your own can be a little bit complicated and you don’t get much success.
Do Credit Repair Companies Really Work?
In the above segment, we have demonstrated how a credit repair company works to fix your credit report issues and improve your credit score. Even then if you are confused about whether they really work or not, this section is for you.
The answer to the question do credit repair companies really work is certainly yes. These companies appoint attorneys who are licensed to work in business or legal matters. The appointed attorneys understand the implications of the business and law. Their knowledge and experience make them more viable when they are denying negative information on your behalf. These attorneys also apply allocation through federal consumer protection laws to aid in improving your poor credit history.
Apart from that, the best credit repair companies will aid you in the following subjects.
- Aid you in perceiving and assessing your credit reports
- Help you to understand how credit scores are considered
- Find your proper strategy that will continuously improve your credit history
We would like to clear one thing that it is not certain that credit repair will improve a poor credit score. If there is false information in your credit reports that is inaccurate, there is nothing you or your credit repair company can legally do to extract it. But, if your false or negative items are correct, you will be up to rebuild your credit rather than repair it.
Act of Credit Repair Organization
The CROA [Federal Credit Repair Organization Act not only describes what a credit repair company is but also how these organizations must run. It has been cleared by CROA what a credit repair company can do and what can’t to stay obedient to federal law. Here we have mentioned some acts that can’t be done by credit repair organizations.
- Can’t suggest customers make duplicate statements to credit reporting bureaus.
- They are not allowed to advise customers to reform their identification to prevent credit reporting agencies from conjoining them with their credit info.
- Can’t charge fees for services until it is entirely accomplished.
- Not allowed to confirm that they will be able to remove info from the customer’s credit reports
The credit report organization act also requires repair companies to assert their customers of the following
- Customers have the right to flare-up their own credit reports details for free
- They can charge against the credit repair organization if they disobey CROA
- Credit reporting agencies must control good procedures to maintain the authenticity of credit information, errors or mistakes may occur.
How To Improve Credit Score
Here we have discussed how a person can improve their credit score without taking consultation from the credit repair agencies. If you can follow these ways for a couple of months, you can see the noticeable difference.
- Don’t be late to pay your bills as paying bills on time on a regular basis helps improve your credit score.
- If you own a credit card account, call and inspect about a credit increase. You should be allowed in the upturn credit limit if your account is in a good position.
- It is better to stop using credit cards rather than closing. Relying on the credit limit and age of a card can influence your credit score if you close the account.
- You can hire a credit repair company if you don’t have adequate time to improve your credit score. Repair companies will collaborate with the three credit agencies and your creditors on behalf of you in exchange for money.
Final Thought
Credit repair companies really work to improve your credit score. If you have a poor credit score but don’t know why it happens and what you should do now, you can take help from several credit repair organizations in exchange for money. Basically, they negotiate with the three credit agencies and creditors and find out the mistakes and errors that are the prominent reason for bad credit history.
