credit repair services can help you address errors on your credit report, which may hurt your credit score and make it harder to get a mortgage, car loan or even a job. But the field is notorious for scams, so it’s important to do your research before working with a credit repair service.
There are many things that can negatively impact your credit, such as late payments, bankruptcies and collection accounts. These blemishes can lower your credit score and increase the amount of time it takes to improve your score. They also can make it difficult to get loans, which may increase your interest rates.
The goal of credit repair is to get rid of these blemishes by disputing errors with the three major credit bureaus — Experian, Equifax and TransUnion — and your creditors. A credit repair company should be able to guide you through the process and explain your rights under the Fair Credit Reporting Act.
But if you’re in a hurry to repair your credit, you can try the process on your own. Checking your own reports – and educating yourself about the steps to take – will help you save money by not having to pay a credit repair service. You can start by requesting your free annual credit reports, checking them for errors and reviewing your financial situation to see if you’re ready to proceed with a credit repair company.
To find a credit repair service, look for a website with good customer reviews and a company that has years of experience in the industry. It’s also helpful to read the company’s claims about how many negative marks they’ve removed and the average credit score increases their clients have seen. However, beware of any company that demands payment upfront or promises a specific credit score increase in a certain period of time. These tactics violate the Credit Repair Organizations Act and should be a red flag.
In addition to being a credit repair service, some companies offer credit monitoring for a monthly fee. While this may be beneficial, it’s a good idea to monitor your own credit score as you work on repairing it to ensure that you are on track with your goals.
The bottom line: A credit repair service may be worth considering if you have inaccurate information on your report that’s keeping you from getting a mortgage, auto loan or job. But keep in mind that you can do the majority of the work yourself, and it’s best to avoid any credit repair company that charges up-front fees or makes guarantees that are illegal under the Credit Repair Organizations Act.
This article is provided for general education only. It should not be construed as legal, financial or credit advice. See Lexington Law’s editorial disclosures for more information.
What are the top credit repair benefits?
There are a number of credit repair benefits, including helping you to get approved for loans and saving on your interest rates. But the most important benefit is that it helps you get to a better place financially so that you can live your life to the fullest.