If you find errors on your credit report, the instant thing to do is to file a complaint to the issuing agency. Your agency’s customer service will deal with your complaint and get back to you when it is solved. However, some of the claims may require investigation and other lengthy procedures before solving your credit problems.
These procedures may take time and communication may be poor and you may not get meaningful results. Meanwhile, you may end up incurring high-interest rates or fail to qualify for credit. The best option is to hire a fast credit repair company to fix the errors for you at a fee. These professionals know their way around credit repair and will restore your credit score within a specified timeframe. So, credit repair services are worth the cost for the following reasons.
- Timely Results. Reputable credit repair companies charge between $60 and $200 per month, depending on the service. For example, the cost of correcting identity mix up may be less compared to identity theft-related credit restoration. However, the advantage of timely repair of your credit score is worth the cost of paying a credit repair company. For example, if you are in the middle of a car loan application process, you cannot afford to wait since the uncertainty may not only delay your goals but also cost you more than taking care of the credit problems in the first place.
- Professional Intervention. Issues like identity theft and credit card fraud are serious crimes that may take years for law enforcement agencies to conclude. Credit bureaus may not have the necessary in-house infrastructure to cater to such needs. The best option is to hire a credit repair company. The cost will be far much less compared to the anxiety of waiting for a breakthrough in the investigation and the damage already done on your credit score.
- Disputing Information. Some factors such as bankruptcies and foreclosure lower credit scores. You may qualify for a federal moratorium for some of your debts as you repair your credit problems, and a credit repair company can represent you and make a compelling case why some information should not be considered in your credit score application. Your credit score could also be in distress due to the negligence of your financier. Your financier may have given you misleading advice. A credit repair agency can weigh your case and write a compelling argument to the credit agency.
- Negotiation. Credit repair companies can negotiate on your behalf to clear up elections, late payments, or incorrect payment statuses. Collections are complex issues when it comes to credit repair since no two collection agencies are similar, and each debt could have different terms. A reputable credit repair agency can help you negotiate for pay deletions where the collection is entirely removed from your credit report upon payment of the agreed amount. The agency can also negotiate for a late payment to be removed from your account.
- When You Need to Use Credit. If you want to start a small business, you will need an excellent personal credit score to qualify for a loan. Getting that extra 50 or 100 points to your credit score will help you in the approval process for funding. If you want to start using your credit but it is in poor condition, it is time to consider credit repair to fix the credit problems. You may decide to do it yourself, but the process is time-consuming. If you work for long hours or have to deal with kids when you are not working, you may not have the time to repair your credit score. However, this does not mean that you do not get good credit. Look for a reputable credit repair agency and have them repair the credit for you.
- Cost. The cost of hiring a credit repair company depends on the company. However, there is a rule that they follow. Credit repair companies will not receive or request payment until they have delivered their results. Depending on the agency you choose, you may pay a one-time flat fee or pay for each issue fixed by the company. This may range from $35 to $750 per issue. Your company may also charge per month ranging from $50 to $130 or more. Think about the work the credit company will do and choose the payment plan that works for you.
Credit repair companies are worth the cost to fix your credit problems. However, watch out for all the warning signs and potential scammers. Ensure that your credit repair company is reputable and delivers as per your expectations.