The Pros and Cons of a Credit Repair Service

Having a good credit score is essential if you want to get approved for any financial service, whether that be an auto loan, a mortgage, a personal loan, or anything else.

A credit score of around 700 (Fico score), is a good score. For those who aren’t quite there yet, credit repair can make a world of difference.

Credit reports can be obtained free of cost once a year from each of the three credit reporting bureaus-Equifax, Experian and TransUnion. The Fair Credit Reporting Act (FCRA) requires the information on your credit reports to be 100% accurate. Otherwise, it must be removed. A study conducted by the Federal Trade Commission revealed that one in five people had an error in at least one of the three reports.

Here we will discuss the pros and cons of hiring a credit repair service so that your search for ‘Credit repair services near me’ leads you to hire the best credit repair company.

Why you should hire a credit repair service?

Chances are that you are too busy to deal with errors in your credit report. Even if you have time, you may want someone else to do the actual work of fixing a credit report. Some of the advantages of hiring a credit repair service have been mentioned below:

A credit repair service has the experience

You can try to repair your credit on your own. You will find a lot of good advice online. However, you may not be acquainted with the laws that can be used to your advantage. Are you familiar with the Fair Collections laws or the Fair Billing Laws?

A credit repair service is knowledgable about such laws and more. They can fix your credit. They can also help you understand how the different items on your credit report are affecting your credit score and where you can concentrate on instant results.

A credit repair service has the resources

While it is possible for you to manage by yourself, you will have to do everything alone, on your own. This may prove difficult. Improving a credit score involves filing legal documents and letters, talking with a collector or creditor, speaking with the representatives of the credit bureaus, etc.

A credit repair service has the experience to deal with collection agencies and credit bureaus. They know whom to contact and for what. They also have the skills to negotiate. This is because a credit repair service has been doing this kind of work for quite some time.

A credit repair service saves your time

Improving the credit score can be time-consuming. Also, the process is tedious. You may also find it taxing to spend time thinking about possible solutions to credit repair problems.

When you search the net for ‘Credit repair services near me’, you will get many results but if you choose a top credit repair service, they will find the best ways of repairing your credit score while you can use your time to focus on other matters that require your attention.

Why you should think twice about hiring a credit repair service?

There are all kinds of people out there. Do you know whom to trust? Some of the disadvantages of hiring a credit repair service have been mentioned below:

The services of a credit repair company aren’t free

Undergoing the dispute process may be free but to avail the services of a credit repair company, you will have to pay them. The price charged by a credit repair service to repair credit varies. It would depend on where you live and the type of services you require.

There are scammers everywhere

The possibility of getting scammed exists. You should be aware of your rights as a consumer under the Federal Trade Commission (FTC). The FTC forbids any credit repair service from charging any amount upfront. At the same time, you should be on your guard if someone offers a guarantee that your credit score will improve for sure.

Search the net for ‘Credit repair services near me’ but carry out due diligence to select the right service. Do you have any questions?

How to Build Credit Fast: A Step-by-Step Guide

Having good credit is an essential factor in being considered eligible for credit cards and loans. However, to build it, you need to have a reliable credit history. That makes it a Catch-22 situation for young adults and others who are starting and want to find the fastest way to build credit.

How do you build credit when you’ve never had a credit card or taken a loan? And how do you convince lenders to give you credit cards or extend loans when you don’t have a credit score?

Fortunately, though, you do have options to get around this conundrum. Moreover, you will even be able to build credit fast. Here is a step-by-step guide to help you:

Apply for a secured credit card

While many lenders will hesitate to give you an unsecured credit card if you don’t have a credit history, they won’t have a problem with offering you a secured credit card. In this type of credit card, you must make an upfront cash deposit that is equal to the credit amount limit. You can then use the card to make your purchases and pay off the balance every month.

The lender will report your payment history to the three credit bureaus—Experian, Equifax, and TransUnion—and it will impact your credit score. By staying below the credit card limit and making regular payments, you can increase your credit score and build good credit. You may even become eligible soon for a regular credit card.

Get a credit builder loan

You can get a credit builder loan from your local bank or credit union. After you apply for the loan and get approved, the financial institution will deposit the loan amount into a savings account for you. However, you can access the funds only after you have repaid the loan in installments over the next one or two years. Keep in mind that the whole point of such a loan is to offer you the fastest way to build credit. The three credit bureaus will make note of your regular loan payments and that will push up your credit score.

Keep your credit balance down

Paying your credit card bills on time is essential. However, instead of making a lump credit card payment once a month, consider making several small payments over the weeks. Pay right after you’ve used the card to make a purchase. These multiple payments will keep your credit utilization rate low, and that will work to your benefit when it comes to improving your credit score.

Ask the card issuer to raise your credit limit

By increasing your credit limit, while your balance remains the same, you can lower your credit utilization rate. Having a low credit utilization rate is crucial for obtaining a high credit score. However, remember to ask your credit card issuer if it will be possible to increase your limit without going through a hard credit inquiry. That might not be in your interest and might even end up lowering your credit score.

Become an authorized user on an existing credit card

The fastest way to build credit is to ask your family or friends to add you as an authorized user on their credit card. You don’t need to use their card, just be on it as an authorized user. Their credit history will then show up on your credit report and will be instrumental in boosting your credit score. Of course, that will only happen if they are fiscally responsible, stay well below their credit limit, and make their credit card payments on time. If they’re not, your credit score will take a nose dive along with theirs. So, only ask people you absolutely can trust.

Pay all your bills on time

While the FICO score doesn’t consider your rent and utility bills, other sources like the FICO Expansion Score and the Payment Reporting Builds Credit (PRBC) company do cover these payments. If you have been timely with paying your bills, it will increase your creditworthiness with lenders. Along with these steps, it will also help to review your credit report annually and make sure that it does not contain any errors that might damage your credit.

Pros and Cons of Hiring a Credit Repair Company

Do you have a bad credit score that is slowly but surely ruining your life? Not only does it make you practically ineligible for home, car, and business loans, but it creates hassles when you want to rent an apartment, get a new job, or even buy a new mobile phone connection. You may also face a difficult time in your relationship due to your financial mismanagement.

Rather than let things go on as they are, you will need to make an effort to change things and improve your credit score. While it won’t happen overnight, it is not an impossible goal. You can do it on your own, or you can hire credit repair companies to assist you. If you have a busy schedule or have trouble making sense of credit reports, the latter option may suit you better.

Let’s consider the pros and cons of hiring credit repair companies.

Pros of hiring a credit repair company

Credit repair companies have experience: They have the requisite knowledge of fixing credit scores and of the Fair Credit Reporting laws. They can inform you about your rights as a consumer. Additionally, they will know how to file legal documents, carry out the necessary correspondence with the three credit bureaus, and deal with bureau representatives and collection agents.

Credit repair companies save time: When you are trying to improve your credit score, you may have to engage in a lot of back and forth with the credit bureaus. Along with being time-consuming, these exchanges also entail knowing their correct procedures. That can be overwhelming for many people. It is much more convenient to let the credit repair companies handle the whole matter.

Cons of hiring a credit repair company

Credit repair companies can be expensive: While the disputing process with the bureaus is free, the services of the credit repair company aren’t. As per the Federal Trade Commission’s rules, you don’t have to pay them upfront, but only after they’ve done the work. Their price will vary according to the services they have rendered you, and, in some cases, it can be quite expensive. If you are on a tight budget, hiring a credit repair company might be problematic for you.

Credit repair companies can’t guarantee results: If you are expecting a credit repair company to perform a miraculous wiping out of your bad credit, you have the wrong end of the stick. What the company does is gather your credit reports from the three bureaus and go over these meticulously. They may take a couple of days to check everything thoroughly. If they find any errors in these reports, they will file disputes with the bureaus, provide them with documentation proofs that will uphold your side of things, and await their responses. They will then negotiate with the credit bureaus to have them change your credit score.

However, there isn’t much the credit report company can do if your bad credit isn’t due to overlooked errors, but on account of your failure to make timely payments or because you have defaulted on what you owe your creditors. In such a case, you are not going to get the results you want by hiring a credit repair company. It will be better to accept that you are at fault and get busy and pay off all your outstanding bills and other dues. It may take time, especially if you have a large amount of debt, but you need to be consistent about the repayments. Once you have paid off everything, your credit score will start to improve. You will have to take care that it doesn’t slide again.

Improving your credit score is a necessity to bring your finances back in order. The sooner you can get it done, the better it will be for you. You need to carefully consider if you have the time and the knowledge to handle it on your own, or if you will be better off hiring a reputable and experienced credit repair company. As we have seen above, working with a credit repair company has definite pros and cons. You will need to weigh in these to come to the right decision for yourself.

How Do Credit Repair Companies Fix Your Credit?

If you have ever wondered how do I fix my credit, then you are alone. Millions of people struggle with this issue on a daily basis. Your and everyone else’s worries are also not unwarranted. After all; a good credit score is essential for a secure financial future.

You need good credit to borrow money and apply for credit cards. Your credit score can also determine whether you get that apartment you wish to rent or secure a coveted membership to an exclusive club. Essentially, good credit can help you improve your life in many ways. You are unlikely to get even credit card approval without a good credit score. But bad credit doesn’t mean you can’t do anything about it.

If you wish to improve your credit, you can hire professionals for the job. There are genuine credit repair companies you can work with to fix your credit.

Here’s how these companies fix your credit.

Remove Negative Items from your Credit Report

Your credit report is essentially a summary of your financial transactions involving loans, credit cards, payments, etc. Many factors on your credit report can impact your score. These can be loan payments, delayed or faulty payments, new credit application etc. But oftentimes; errors are also present in these reports, which can affect your credit score negatively. But these can be removed to fix your credit.

But the process is not easy. Fort Lauderdale credit repair companies take due steps to remove all negative items from your credit report and help you fix your credit.

Report Analysis

The first step to remove negative items is to identify these in your credit reports. A reputed credit company will analyze reports from all three credit bureaus and carefully make note of incorrect or negative items listed on them. These negative items can be inaccurate personal information, false information about late payments, or any outdated information.

It takes time to go through each item on the credit reports. Credit repair experts can identify items affecting your score even if those might seem correct or harmless to you.

Strategy

Next, a credit repair company creates a strategy to dispute the incorrect items on your credit reports. A dedicated credit repair specialist will work with you and help you understand the process. Credit repair companies work in a transparent manner. You will be aware of their action plan and progress report about every deletion.

Dispute

Once the action plan is set, your credit specialists will begin to dispute the errors. The work is done on all three credit bureau reports without delay. They will notify the credit bureaus of these errors and request their deletion with immediate effect.

Disputing takes time. Credit bureaus are not likely to accept deletion requests for each and every dispute at once. They are more likely to deny such requests. Without the expertise of credit repair specialists, it is extremely difficult to experience even a little bit of success with the credit bureaus. It requires relentless efforts to ensure each and every incorrect entry is deleted from all three of your credit reports.

Results

You can begin to see the results of the dispute process within 30-45 days. As the inaccurate entries begin to get deleted from your credit reports, you will begin to notice an improvement in your score. The actual time for your score to improve may depend on the number of errors to be removed from your reports.

The type of errors can also impact the results. Some errors may be deleted with one request only. Others such as late payments, faulty payments (of credit card bills or loans), or any other major entry are examples that can delay the results. But you will see positive results. Irrespective of your score (even when it is very low), you will see good results with this proven method.

To Sum Up

Credit rebuilding is not a magical process. It takes time, effort, and expertise to rebuild credit via the dispute and deletion process. Credit repair companies use this effective method of improving your credit. The disputing and deletion method is a surefire way to fix your credit. If you use this method, you won’t need to wonder anymore about ‘how do I fix my credit.

What are the Credit Repair Tips and Solutions?

Bad credit can become problematic for you when you need to apply for loans or credit cards. A low credit score can stop you from living your life to the fullest. You may be denied a mortgage or auto loan due to your low credit score. Your insurance premium can be higher due to your bad credit. The list can be pretty exhausting.

A low credit score can be a result of poor financial planning or any other reason. But you don’t have to live with it. There are simple measures you can adopt to get your credit score back on track.

Consider these tips and solutions for repairing your credit.

Check Your Credit Reports

The number one step to repair your credit is to check the reports. You can request the credit bureaus for free credit reports every year. Once you have the reports with you, it is time to analyze them.

Carefully go through the reports. Check for inaccurate information mentioned on all the credit reports. Inaccurate information can be related to delayed payments or non-payments. Take into consideration any mention of accounts that are not yours or false information about accounts that you have paid off already.

If you find analyzing the reports overwhelming or do not have the time for it; you can hire the services of Fort Lauderdale credit repair companies. But it is important to work with only reputable companies with a proven track record of customer satisfaction. For instance, in Miami credit repair companies can be aplenty. So, how do you know which company is right for you? Check the websites of the companies carefully before hiring one. Look for client testimonials and their payment structure. Reliable companies may even offer a money-back guarantee.  

Dispute Inaccurate Information

Once you have identified the inaccuracies in your report; it is now time to dispute them. The disputing process can take time. There is a lot of to-and-fro communication involved when dealing with credit bureaus. They are unlikely to delete errors upon one request by you. You may need to provide them with solid proof to convince them.

It is Your to not hurry with the process. Due diligence pays off when it comes to repairing your credit. Too many dispute requests at a time can also work against you.

When you work with credit rebuilding companies; they can take care of the entire process of analyzing the reports and disputing the errors on them.

Take Care of Outstanding Payments

There are other measures you can take while your errors are being disputed and deleted. When rebuilding credit, it is very important to take care of any outstanding payments. Due accounts can significantly lower your credit score. If you have collection accounts; take care of those as well. Accounts that are way past their due dates are often sent to collection agencies. So, make sure you are current on all due payments.

In the meantime, do not neglect your accounts with good payment history. Keep them current as good accounts help with your credit score. It is also important to not close any accounts during the time of rebuilding your credit. Closing accounts can adversely impact your credit score. In fact, any old credit cards with extensive payment history can help your credit score. It helps to simply keep paying off the dues on time.

Maintain Low Credit Utilization Ratio

Credit utilization is a significant factor affecting a person’s credit score. It is the ratio of the total debt to total credit available to you. Ideally, it should be less than 30%. You can maintain a low credit utilization ratio by paying off outstanding debts and increasing your credit limit.

Open New Credit Accounts

Open new accounts only when you have taken care of the above-mentioned steps. It is also important to keep the limit of your applications to the minimum one and maximum two. Credit applications lead to credit inquires; temporality lowering a person’s credit score. You can also apply for a secured credit card if your applications are getting denied. To get a secured credit card, you will have to deposit a certain amount with the bank or the credit card-issuing agency.