Cash Flow

Is Credit Repair Right for You?

It’s easy to feel like your credit report and credit score are what make the world go round. If you have good credit, you can pretty much buy anything you want. If you have bad credit, something as simple as renting a house can become challenging. If you fall into the category of “bad credit,” have you ever considered hiring a credit repair company to handle your mess for you?

How Credit Repair Services Work

If you have bad credit, the good news is that you aren’t alone. An estimated 68 million people have bad or poor scores, which means lower than 601. In case you’re crunching the numbers at home, that means roughly one-third of adult Americans have bad credit.

While bad credit a common problem, it’s not a good problem to have. As you’re well aware, your credit score affects almost every important financial decision you have to make. It burdens you with high interest rates on credit cards and loans, keeps you from getting approved for loans, makes it difficult to rent an apartment, often requires higher insurance premiums, and may even prevent you from getting a cell phone contract with certain companies.

Thankfully, there are ways to improve bad credit scores. One of the most popular methods comes in the form of credit repair services. These services are simply companies that help you dispute errors on credit reports and go through the process of correcting issues that cause poor scores. While you can technically do this on your own, professional companies are more experienced and can make the process go more smoothly.

Tips for Choosing the Right Credit Repair Company

The credit repair industry doesn’t exactly have the greatest reputation. There are a number of seedy companies that try to sell customers services they can’t really offer, which has given the reputable companies a bad name. If you’re interested in pursuing credit repair through a respectable service, you’ll need to carefully evaluate your options.

Here are a few tips for choosing the right company:

1. Avoid Biased Sales Pitches

Marketing and advertising play an important role in growing any business. And while there’s nothing wrong with ethical promotion, you – as a customer – should look for more than biased sales pitches when analyzing different credit repair services. Instead, make it a point to do your own research and rely on third-party reviews and ratings.

2. Be Wary of Guarantees

There are some industries where guarantees are a good thing. For example, it’s always smart to take your car to a mechanic who stands behind his work for a certain number of miles. But guarantees aren’t ethical in the credit repair industry. No company, regardless of how skilled or experienced, can promise to improve your credit score. If you see outrageous claims, it’s best to walk away. Companies that make big promises are going to find a way to let you down.

3. Look for Good Communication

One of the most common complaints people have with credit repair companies is that they don’t communicate well or return calls or messages in a timely manner. While it’s not always easy to tell how communication will be until you actually start working with a company, be aware that this is often an issue and keep an eye out for any red flags when doing your research.

Make Smart Choices

Credit repair can be an excellent choice if you’re one of the 68 million Americans who has a credit score below 601. While you can technically do it on your own, hiring a company saves you a lot of time and frustration. Just make sure you do your research and find a reputable company that has your best interests in mind.

  • All of us wish to have good credit. Even I also always had the dream of having good credit. This is a really good post. Larry Alton shared experience info and able me to select or concentrate on one efficient opportunity of credit.