Why You Should Be Cautious When Getting a Credit Repair Company
Do you believe that everyone has some sort of debt? Sad to say, but yes. Almost everyone has a credit card balance, an outstanding student loan, or mortgage and car payments. Each loan builds up your own credit history which you might not be thinking about until it is too late. Unknown to almost everybody, credit history has a huge influence on your life, your purchasing behavior, and your financial decisions. Poor credit history can lead to the inability of renting cars, obtaining services without deposits or getting a credit card. That is the exact reason that once you have figured this out, you should take steps towards credit repair as soon as you can.
Fixing poor credit history can be overwhelming for some and the urge to seek the help of many companies online offering “fix bad credit” for a certain fee is strong. Without underestimating the capabilities of these companies, for most people, they are not necessary and should be avoided.
The reason credit repair companies are not useful for most people is that they rarely do anything that you can not do yourself. You might get the impression that they have special techniques that they use that you would not be capable to do but the truth is, that is false.
Credit repair companies usually start their process by asking the client to request their credit report from the credit reporting agency. Afterward, they will launch many disputes to the report in terms of letters. The strategy per se is to take advantage of a legal obligation on the part of the credit reporting agency which is to respond to any investigations within 30 days. And of, course, if you send disputes multiple times and no response was received, they have the obligation to remove the item from your credit report.
This might sound like a good and well-thought strategy but the bottom line is, you are only buying time but you have not totally eradicated the items. In other words: they may not be able to produce the documentation in 30 days and have to remove something, but they will keep investigating and once again the item will be restored when they find the documentation.
Moreover, you have to be vigilant and cautious because not all credit repair companies are legitimate. Avoid any companies asking for an upfront payment before even meeting you. They are legally bound to deliver their services first before asking for any payment. There should be proper documentation of all the fees that they will charge as stipulated by the law. Once you opted for the services of credit repair companies, make sure to check all the paperwork provided and nothing is overlooked.
Remember the fact that for most people, a credit repair company is not really necessary. Make sure that once you get one, they can do something that you can not do or you do not afford the time to do it on your own.