Nothing is worse than suffering from a dreadful credit score. The worse off your score is, the harder it will be to get favorable interest rates on car loans, credit cards, mortgages and more. In fact, it may be tough to get qualified for anything at all.
So, what can you do in a situation like this? Some people stuck in the â€œcredit funkâ€ will often seek out a credit repair specialist to help them clean up their credit. Many of these credit repair companies advertise the promise of getting your credit back on track, making it appear like an opportunity that shouldnt be passed up. Unfortunately, these companies can do more damage than good, causing more headaches and leaving you worse off than you were before.
Why Hiring a Credit Repair Agency is not Worth Your Time
If youre still playing around with the idea of hiring a third-party to help you with your credit, it might be time to rethink your strategy. Its not worth your time (or money), and thats just the beginning of it. Here are 4 more reasons why you should avoid these companies at all costs:
#1 The High Fees Arent Worth Paying
With so many non-profit debt reduction agencies in operation, paying a fee to a for-profit company for credit repair should send the alarm bells into overload. Many of these â€œagenciesâ€ charge significant fees to try to help you repair your credit. If youre already in trouble with your credit, how will you come up with the money to pay for a service?
Do yourself a favor and contact a non-profit credit consolidation firm instead. They are there to help you without trying to suck money out of your pocket.
#2 They Make Promises They Cant Keep
Have you ever seen the high promises made by these so-called credit repair companies? Many say they can increase your score, remove negative records and so on. The problem is that many of these guys cant keep the â€œpie in the skyâ€ promises they make to you. In fact, you wont know how much of an honest effort they will really give.
If it isnt obvious, a company who makes wild claims is another immediate red flag. Like the old saying goes, â€œIf its too good to be true, it probably is.â€
#3 There Are No Guarantees
Just like making promises that cant be kept, some companies will go as far as offering a guarantee on their services. The problem here, however, is a big one: When youre dealing with credit repair, nothing is guaranteed. You should be extremely leery of a company who charges high fees and â€œguaranteesâ€ things like an increased score, negative account removal and so on.
Imagine spending a fortune for the guarantee that your credit gets cleaned up, only to be left in the dust with your credit still looking the same as it did before? Things like this can happen, which is why avoiding a credit repair company is the best move you can make!
#4 You Can Do it All on Your Own for Free
Why pay for something when you can do it all yourself and at no cost? You dont need any level of expertise to clean up your credit. All you need are your reports from all three credit bureaus (TransUnion, Experian and Equifax) and an afternoon to read through them all to verify accuracy. Anything that is there that isnt supposed to be can be easily disputed.
Disputing an inaccurate entry on your credit report is simple. While each credit bureau has their own process, the concept is the same. All you have to do is open up a claim for each inaccurate entry. To validate your claim, you will need proof or evidence that the entry youre disputing is invalid. After the claim is reviewed and verified, your report will be adjusted accordingly.
Leave the Clean Up to You
As you can see, avoiding any credit repair company is a wise move. Do it yourself and you will save considerable time and money. Plus, you will get the satisfaction of knowing that you did it all on your own. Thats all it takes to get your credit back on the right track!
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