If you’re planning to hire a credit repair company, you probably want to know what you’ll be getting for the money you invested – right? Companies that affirm to help fix your credit should be completely transparent with what they can and can’t do for your situation. A good company focuses on removing negative items from your credit report and helps to improve your FICO score. An improved credit score makes it easier for you to obtain a home, vehicle, mortgage, or insurance.
Most credit repair companies work in the following way:
- They first obtain your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion)
- Pinpoint specific items in your credit report that can be disputed.
- File credit disputes on your behalf using less-known strategies that forge a high success rate.
- Coordinate with creditors and credit bureaus on your behalf to remove negative items as soon as possible.
Are Credit Repair Companies Worth The Cost?
Determined by which company you decide to use, the price of service will usually range between $59.95 and $99.95 a month. However, there are no long-term contracts and you can cancel the service at any time. Considering the amount of extra money you pay in high-interest charges with a bad credit score, we do believe that the best credit repair services are worth the price. A good FICO score can result in better interest rates on loans, mortgages, credit cards, and more. If you have a poor credit score and need to fix your credit fast, these services will yield the best results in the shortest span of time.
Aspects to Consider Before Choosing a Credit Repair Company
It’s highly likely that personal finances are important to you if you are taking the time to research credit repair services. Hence it is critical to do your homework before settling on a company to help you repair your credit.
- The #1 caution sign that you should avoid a company is upfront fees. A reputable credit repair agency will never ask you to pay any monies upfront.
- Educate yourself on the factors currently hampering your credit score by giving a negative impact.
- Set your expectations clear.
- Have a good knowledge of your rights. The Fair Credit Billing Act was authorized in 1974 for the sole purpose of protecting consumers from unfair credit billing practices.
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