If you’re having trouble getting a loan or credit card, or you’re worried about your score, you may want to consider credit repair. It is a great way to boost your score and help you achieve your financial goals. However, there are certain things you should know about the process before you get started.
Credit repair involves disputing items on your report that are inaccurate, derogatory or unfair. While you can dispute errors on your own, there are also many services that can make this process faster and easier. These companies will work on your behalf to contact your creditors and remove derogatory entries from your credit reports. They can also help you understand your reports and develop a plan to repay debt.
Typically, you’ll pay a monthly fee to the credit repair company, but the cost of the service can vary depending on the company you choose. Some companies offer flat-rate plans, while others charge a startup fee or require a one-time payment.
A legitimate credit repair company should not ask you to pay upfront. In addition, they should be honest about the fees and the length of time they’ll be working for you. The contract you sign should clearly outline the services you’ll receive, the terms of payment, and the cancellation policy.
If you’re in financial trouble, you don’t want to spend any more money than you have to. That’s why it’s important to check out your options before you sign up for a subscription. Getting scammed could leave you in worse shape than you were before. Check for customer reviews and read the fine print before signing up for a company.
Some companies offer a money-back guarantee, which can be helpful. For instance, The Credit People offers a flexible cancellation policy. This means you won’t be charged for the first month if you cancel your service after the first three business days. Similarly, Credit Saint offers several membership packages, and its money-back guarantee can provide peace of mind.
There are also companies that provide free credit counseling. Nonprofit credit counseling agencies like American Consumer Credit Counseling and InCharge Solutions offer free services. However, you can also go online and research companies before deciding. Doing this will make the difference between getting your credit back on track and being fleeced for hundreds of dollars.
Credit repair can be an expensive and time-consuming process. You should only hire a company if you’re in a financial crisis and can’t handle your finances on your own. But if you’re willing to put in the time and effort, you can get your score back on track and start enjoying the benefits of repaired credit.
Depending on the severity of the negative items on your credit report, the process may take as little as a few months or as long as three to six months. Regardless, your credit score can greatly affect your ability to secure a loan or credit card. So you should always do your best to stay on top of your credit.