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Having a bad credit score on your profile is something no one wants. A bad credit score makes it hard for you to get loans or mortgages, many times, you’ll find your hands tied even when you try to do something small like getting a credit card issued.
Thankfully, like every other problem in this world, there is a solution that is reliable and easy to understand. What is this solution? You can avail of the services of a reputable credit repair company that has the power to wash away that stamp of bad credit from your profile.
What Is A Credit Repair Company?
In the simplest words, a credit repair company works to improve your overall credit score in exchange for a fee. Very briefly, a credit repair company can do this by using agents that will find credit disputes in your report and tackle such matters with the relevant bureaus so that your credit report is free from the problems that are lowering your score.
It is important to understand that availing the services of any credit repair company, as easy as it may sound, could be risky in some situations. Therefore, staying aware of how things go down at a credit repair company, and awareness about the credit repair process is essential. Once you have a better understanding of this process, you can quickly figure out which company is actually helping you out in and which one is just eating your money.
How Does A Credit Repair Company Work?
You may have come across someone talking about how effortless the process that credit repair companies follow is. The truth is that even though a credit repair company’s working mechanism is simple, it is not as effortless as people think.
It would be too challenging for an ordinary person to aim to repair their own score, so it’s better to leave this job to the professionals. Having said this, it is also important to understand the basic steps of the credit repair process. Knowing these can either assure you of the credibility of the company you have hired or is helpful enough to alarm you in case you are being scammed.
Basic steps followed by every credit repair company
Here is a very simple and brief summary of the steps that are followed by almost every credit repair company, regardless of where it is based. The steps are usually followed in the same order that they are listed:
- The first step is to get your credit report from all the bureaus. An agent at the company will discuss your report with you to figure out if the issue can be solved and if there is a negative score mistakenly added to your report. If there is no major issue, your company confirms you as their client and starts working to correct your score.
- A credible company will always cross-check the three reports and contact the concerned parties to confirm the issues mentioned in your report and work to get it corrected.
- Your report is analyzed at great lengths to find errors and disputes like mistaken payment history expired negative elements and other such things that can be fixed. After this, the company will collect supporting evidence and documentation to substantiate their demand of getting the negative record removed from your report.
After all of this is done, your credit report is free from any negative instances, such as debt, and your credit score will improve!
How much does a credit repair service cost?
The fee charged for a credit repair depends on a number of things and cannot be started straight away. For a typical credit repair that does not have too many complexities, you can expect the fee to be between $50-$150 per month.
However, other than the monthly flat-rate, this fee can also be calculated in terms of each negative item removed from your credit report. It can be anywhere between $35 to $70 or even more depending upon the nature of deletion made.
It is important to note that each company may have different fee rates depending upon its reputation. However, one thing that applies equally to almost all reputable credit repair companies is that they don’t charge their client in case they fail to get the credit repaired, no matter the reason.
How much time is taken by a typical credit repair company to get things done?
Owing to the attention to detail needed from a credit repair company, getting a clean chit on your credit usually takes up to a month and sometimes even more. The investigation and verification process can take a lot of time, especially for intricate and ill-managed cases. Still, a professional credit repair company will always keep the client in the loop.
With most of the time spent on investigating disputes and getting them cleared by the bureau, a typical case is returned to the client in no more than five days after the investigation is done. However, if a case is problematic enough not to be investigated by the bureau itself, then your chosen company is responsible for informing you no later than a week after hiring them.
How To Find A Good Credit Repair Company
Finding a good credit repair company is hard but not impossible. All you have to do is to keep a critical check on what they say and how they carry things out. Make sure to ask around for a reliability check from someone who has availed their services before. Also, going through the company’s social media accounts and websites may be a good idea. You can read user reviews, which reveal a lot about the company’s credibility and make a decision accordingly.
Conclusion
All in all, even though getting your credit repaired is something you can do on your own, it is better to hire a professional service provider to save yourself from the hassle. It is also important to be careful enough when trusting someone with your credit details to keep yourself safe from any possible fraud.
References:
https://www.creditkarma.com/advice/i/credit-repair-companies/
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This content is sponsored by Tom Tech.
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