You have seen ads on television for credit repair or heard them over the radio. The good news is that you do not have to engage a credit repair professional in order to repair your credit. In fact, credit repair companies can not do anything for you to improve your credit that you can not actually do for yourself.
You can save a substantial amount of money (hundreds of dollars) and the time to find the right repair company by doing these activities yourself. In this article, we look specifically at the many actions that you can undertake to improve your credit on your own.
The Advantage of Self Repair
There are two main advantages to doing your own credit repair personally without getting a credit repair company involved. The main benefit is all of the costs that you will save. Credit repair companies can not guarantee anything except that you will pay for their services, regardless of how successful they prove to be.
The costs for having them write letters and make calls on your behalf runs well into the hundreds of dollars. They will consistently bill you by the month after they furnish these services.
There is also the possibility that you will hire a company that is a scam. There are many illegitimate operations out there claiming to do credit repair. Watch out for these scamming operations. In the end, they can get you into legal trouble and will only take your money in a best case scenario. Avoid the time that you need to invest to find a legitimate credit repair company by simply taking these steps to repair your credit on your own.
What to Watch Out For
The Federal Trade Commission warns you that the credit repair industry is littered with scams. This is why you have to be careful in reviewing any potential credit repair company before you engage their services. You should start out by reading Better Business Bureau reviews for the company in question. You can also search through the complaint database of the Consumer Financial Protection Bureau.
The main thing that you need to be watching out for is companies making claims that appear to be too good to be possible. The following claims are all likely proof of a company running a scam:
- They offer to make a new credit profile for you
- Promise to take off negative information that is accurate from your personal credit reports
- Guarantee that they will better your credit
- Ask you to pay before they provide their services
Instead, look for companies that are completely legitimate. Several of these are Sky Blue and Lexington Law. But remember that there are risks if use credit repair companies, which we look at next.
What Is the Risk of Using Credit Repair Companies?
Aside from the real possibility of engaging a credit repair scamming operation, the main risk in hiring a credit repair company is that you will pay hundreds of dollars in fees and not see the results that you hoped for.
Since you can do all of these activities on your own at no cost, there is no reason to pay someone else to do it for you. This is especially the case because there is no guarantee that they will get you the results that you need.
If you must get involved with a credit repair company, try to work with one that offers a 90 day money back guarantee if you are unsatisfied with the results of their efforts.