Credit Repair Services- the Do’s and Don’ts
Have you recently been rejected from a credit application because of your poor credit? You might have not done some payments on time or have defaulted on a loan. Whatever be the cause of a bad credit score, you want to get it back on track. You will find many companies in the market that will quickly improve your credit score. Do not fall into the trap of a credit scam. This article has some of the dos and don’ts you must remember while selecting credit repair services near me.
The do’s of working with a credit repair company near you
Let us now check out the do’s while working with a credit repair company.
- Determination of your actual credit score
Do not take your recent rejected loan application. Try to understand the reason for the rejection of the application. Upon request, each primary credit reporting agency provides a credit report once a year. You can get a copy free of charge. Whenever a company takes extreme action against you, such as denying your loan application, employment, or insurance, you can access your free credit report in any of these situations. All you have to do is request the report within 60 days of getting a notice of the action.
- Check your report and dispute any errors.
Check out your report for any inaccuracies once you receive it. If you spot inaccuracies like fraudulent purchases or erroneous information, dispute them in writing. Write down all the disputed items in the letter and the reason for your claim. Attach copies of documents as proof to support your stance. Ask the companies for credit repair services to remove the false items and correct the errors in the report. Sending your letter by certified mail is the best option. It will ensure that near you have received the mail. Keep a copy of the mail with yourself and all the supporting documents. It will act as a future record. Doing the similar steps, as mentioned here, you will also have to dispute the charge with your actual creditor.
- Adopt good practices to improve your credit score
A credit repair company will do anything to improve your credit score. Adapt good financial practices if you are determined to improve your credit score. Make sure to pay all the credit card bills on time. Set up an automatic payment system if you are always late with the payments. If your credit score is not improving even after paying bills on time, you must recheck your spending habits.
Use your debit card only while shopping and restrict the use of a credit card. Wherever possible, use cash to avoid borrowing. Try to increase your income and trim your expenses. Find cost-effective ways of bill payment like using coupons. Eliminate the practice of blowing away money on expensive stuff.
Don’ts of working with credit repair companies near me
Never try the below things while working with a credit repair company.
- Do not expect quick fixes in your credit report.
We understand that you can be anxious to improve your credit score. But a quick fix to financial situations is just a myth. No quick fixes exist for creditworthiness. It will take time, lots of hard work, dedication, and good budget creation to improve your score. Nothing comes easy, so a realistic debt repayment plan is essential.
You will be bombarded with promotional material from credit repair services if you have a bad score. If the claims sound too good to be true, do not fall into the trap as they may be scams.
- Do not expect immediate changes.
It is common to never see any changes in the credit score during the initial days. Do not feel stressed out if you have been working and see no improvements in the score. Creditors will send your credit report to the reporting agencies periodically and not daily. The period is usually 30 days.
