Your credit is in shambles, and you desperately need to repair it. Whether you’re looking to apply for a personal loan or credit card, buy a new car or shop for your dream home in the future, a polished credit score can make the process a lot easier.
There’s good news and bad news. Bad news first – it could take some time to repair your credit, depending on what’s in your credit profile. The good news is with the right actions; you can be well on your way to a good or excellent credit score. Even better, you have several options to fix your credit, whether you decide to do it on your own or hire a credit repair company to do the legwork for you.
In this guide, you’ll learn more about why hiring someone to help fix your credit could be beneficial. It also explores your credit repair options and how to choose the right fit for your unique situation.
Reasons to Seek Help to Fix Your Credit
A lower credit score can negatively impact many areas of your life. Here’s a closer look at a few reasons why it’s worth repairing your credit or seeking help to improve your scores:
- You can qualify for better loan and credit card opportunities with a stronger credit score.
- A higher credit score also means lower deposits and more housing options.
- You could miss out on attractive career opportunities (mainly in the financial services industry) if your credit report contains negative entries.
- Your auto insurance premiums could be higher if you live in a state that permits credit-based insurance scores and yours is low.
So, unless you know how to resolve credit issues, it’s worth hiring a professional to lend a helping hand.
Who Can Help You Fix Your Credit?
You have two options to fix your credit – fix your credit on your own or hire a credit repair company to do the work for you. There’s also the option to consult with a reputable credit counseling agency for additional guidance if you choose to fix your credit on your own.
Fixing Your Credit Yourself vs. Credit Repair Companies
Here’s how to decide if you should repair your own credit or hire a company to do the legwork for you.
When to Use DIY Credit Repair
- You can’t afford to pay a credit repair company for their services.
- You have the time and patience to file disputes on your own.
- You’re willing to educate yourself on how the credit repair process works.
- You’re open to working with creditors and lenders to resolve credit report issues.
When to Use a Credit Repair Company
- You don’t have time to dispute errors or inaccuracies on your own.
- You have the funds to comfortably afford credit repair services.
- Your credit report contains collection accounts, charge-offs, tax liens, foreclosures or bankruptcies, and you aren’t sure how to resolve the errors.
Is it Safe to Use a Credit Repair Company?
There are several reputable credit repair companies to choose from, making them a safe option to help resolve your credit woes.
That said, some credit repair companies operate fraudulently or are on a quest to scam innocent consumers. Therefore, the Consumer Financial Protection Bureau suggests that you be on the lookout for the following when evaluating credit repair companies:
- Credit repair companies that demand upfront payment (beyond the first work fee) for services
- Credit repair companies that make inflated promises guaranteeing the removal of negative items from your credit reports, even if they’re accurate and timely
- Credit repair companies that refuse to disclose your legal rights to you
- Credit repair companies that advise you not to reach out to credit reporting companies – Experian, TransUnion and Equifax directly
If you notice any of these red flags, take your business elsewhere.
The Credit Repair Organizations Act
The Credit Repair Organization Act (CROA) helps protect consumers from credit repair companies from illegitimate credit repair companies. It was enacted in September 1996 as a part of the Consumer Credit Protection Act.
Below is a summary of practices credit repair companies are prohibited from partaking in per the Credit Repair Organizations Act:
- Credit repair companies must not misrepresent or exaggerate the services they provide. To illustrate, they can make inflated promises regarding outcomes or promise to remove certain items within a set period of time.
- Credit repair companies must not make false claims about your credit history to creditors, lenders, other data furnishers or credit reporting agencies. This includes providing erroneous information or encouraging you to do the same when disputing negative credit items.
- Credit repair companies must not advise you to use a different identity or provide you with a new identity to clean up your credit history. The same applies when applying for credit, as this practice also constitutes fraud and is punishable by federal law.
- Credit repair companies must not ask you to waive your legal rights to patronize their services.
The Credit Repair Organization Act also outlines the duties and responsibilities of credit repair organizations to their clients as mentioned below:
- Credit repair companies must disclose your rights during the credit repair process. This includes notifying you of your ability to get copies of your credit reports, file disputes on your own and file lawsuits against credit repair entities that violate the provisions of the Credit Repair Organizations Act.
- Credit repair companies must provide clients with a contract that includes the scope of service, payment requirements and terms, the applicable timeframe, the address of the credit repair agency and procedures for requesting cancellation of services.
- Credit repair companies must allow you to cancel the contract for services within three business days without incurring cancellation fees or penalties.
The Benefits of Getting Credit Repair Companies to Help Fix Your Credit
They Save You Time and Money
It could take anywhere from three months to a year to start seeing results from credit repair. Still, hiring a reputable credit repair company to help fix your credit could save you a ton of time and money. Plus, you could start seeing an increase in your score sooner than you would if you were handling the process on your own, possibly saving you money if you plan to apply for credit in the near future.
Less Stress and Hassle for You
If you have complex credit issues, knowing where to start with the credit repair process can be overwhelming. Or you can hire a credit repair company to alleviate your stress and remove the hassle that handling the issues on your own will bring.
They Have Adequate Resources
Larger credit repair companies have a staff of specialists to handle disputes. This means the process is generally more streamlined and efficient than it would be if you repaired your credit on your own.
They Have Experience and Expertise
Credit repair companies have extensive knowledge and experience handling credit issues. That said, they know exactly which tactics to use to get results.
They Provide You with Advice and Support
The best credit repair entities offer more than just credit report disputes. Many also give you access to an online platform featuring educational resources and guidance on ways to improve your credit health during the credit repair process and going forward. Or you can speak with a credit repair specialist to get personalized support and advice to help you get closer to reaching your credit goals.
Things to Consider When Choosing a Company to Help You Fix Your Credit
Before hiring a company to help you fix your credit, here are some important considerations:
- You can perform the same tasks as a credit repair company. So, there’s no need to feel compelled to hire help if you’re willing to learn how credit repair works and take the necessary steps to fix your credit report.
- The credit repair company cannot make inflated promises. Accurate and timely cannot legally be removed before the credit reporting timeline. If a credit repair company promises you otherwise, that’s your sign to move on.
- The process takes some time, and there’s no guarantee that you’ll get the results you want. A credit repair company that assures you they can get results in a very short timeframe may use deceptive practices.
- You’ll likely pay setup fees to get the process started. Some credit repair companies call them first work fees, and the funds are used to gather your credit reports and devise a plan of action to repair your credit.
- You may have to lend a helping hand during the process. This includes providing supporting documentation to the credit repair company as they file disputes to substantiate your claims. It’s also vital to properly manage your credit to prevent your score from dipping even further.
- If a credit repair company demands upfront payment, explore other options. As mentioned earlier, this practice is illegal under the Credit Repair Organizations Act.
- The best credit repair companies offer educational resources and free credit monitoring to their clients.
- You have three days to cancel your agreement with the credit repair company without incurring penalties. This is also a legal requirement under the Credit Repair Organizations Act.
Get Help to Fix Your Credit
When you’re ready to hire a credit repair company, explore several options to find the best fit. Consider those that comply with the Credit Repair Organizations Act. They should also have a good reputation, as evidenced by reviews from past and current clients and have few (if any complaints) listed in the Consumer Financial Protection Bureau’s database.
Also, the offerings and fee structures of each credit repair company you’re considering to help you make an informed decision. Most importantly, if something seems off about a credit repair company, it probably is.
If you decide to repair your credit on your own, here’s the information you’ll need for each credit bureau:
Experian
- Online: Visit www.experian.com/dispute to start your online dispute.
- By phone: Call the number listed at the top of your credit report or 866-200-6020 to request a copy of your credit report.
- By mail: Submit a written request to Experian, P.O. Box 9701, Allen, TX 75013.
TransUnion
- Online: Visit https://www.transunion.com/credit-disputes/dispute-your-credit to begin the dispute process.
- By phone: Call 800-916-8800 to speak with a dispute expert.
- By mail: Send a written dispute to TransUnion Consumer Solutions, P.O. Box 2000, Chester, PA 19016.
Equifax
- Online: Visit https://www.equifax.com/personal/credit-report-services/credit-dispute/ to get started.
- By phone: Call 1-888-378-4329 to file a dispute with Equifax.
- By mail: Send your written dispute to Equifax Information Services, LLC, P.O. Box 740256, Atlanta, GA 30374-0256.
Companies like The Credit Pros can help you fix your credit with fast and effective results. With an A+ rating from BBB and a 100% 90-day money-back guarantee, they are committed to satisfying their customers. Their services are priced affordably with no long-term contract commitments. These include features like assisting with credit report corrections, increasing credit scores, or establishing credit. Fill out a brief form or call (888) 558-1602 to get contacted by a credit specialist from The Credit Pros’ team.
