A large number of individuals have credit of some form or another. Today, people have credit card balance, outstanding student loan, mortgage, car payments and the like. They all create credit history, which most people do not pay too much attention too until when it becomes detrimental to them. The credit history is one of the most crucial aspects in a person’s life, and once that credit history is ruined you will find yourselves unable to rent cars, obtain services without deposits, or get a credits card. Therefore if you happen to be in this position, there are things you need to do to repair your credit score as soon as possible.
Most people will be overwhelmed by their poor credit score and will consider going to one of the many companies that advertise how they can help you fix your bad credit for a fee. However there are some scenarios where these companies may come in handy but for the most part they are not needed and ought to be shunned.
Why credit repair companies are not beneficial to the majority of individuals because they rarely engage in something that will positively impact you and that you cannot do on your own. These companies will appear to be accomplishing tasks you, as a layman, would not have the time or ability to do for you. In most instances, they are not.
The overall plan of many of these companies will be to get you to first initiate your own request for your credit report from the credit reporting agency, and then launch multiple challenges in writing. The idea here is not that there are necessarily many (or any) mistakes on your credit report, rather you are trying to take advantage of a legal obligation on the part of the credit reporting agency: Specifically, namely at least that all requests for investigations have to be acknowledged in a 30 day period. If the agency does not respond to you in that time (and it is highly unlikely they will if you dispute more than one item) then they have to delete the item from the report.
Although this may appear to be quite subtle, the fact remains that there is nothing to stop the credit reporting agency from publish the removed items back to your credit report once they have located the correct paperwork. In other words: while they maybe unable to provide the documentation in the 30 days and may have to delete something, they will continue to search for the documentation and when it is provided the item will be returned to your credit report.
In addition to the somewhat questionable approach most of credit repair firms use, you should also avoid scams wherever possible. Let me ensure you that it is mandatory for those companies to provide you all the promised services without taking any kind of payments from you. They are also expected to disclose all charges and every service that is to be offered. So, if you go on hiring the services of a credit repair company, it is advisable that you read all the papers and the print signed by you.
For the vast majority of individuals, when it comes to credit repairing, there is no need to hire a company to do the job. One should only use one where they are capable of providing certain services that would otherwise you could not do yourself, or if you do not have time to do them.
