What are credit repair services? Are they legitimate?
When faced with poor credit, it’s natural to want to remedy that as soon as possible. Credit repair companies claim to do just that for you, which can make it extremely tempting for you to use their services. But do they actually work? And if so, are there any catches?
Credit repair companies are, in theory, institutions that can help you improve your credit score through ensuring that your credit report and score are accurate representations of your financial health. Through this, they can help provide you with whatever financial opportunities you were originally refused because of your poor credit score. This is what these professional firms propose.
They first look into your credit report to see if all the information is correct. If there is information that doesn’t look right, the credit repair company will challenge said information on your behalf. Once the company is able to successfully dispute the error, your credit score should change within 45 days.
If your credit score is low due to the fact that you’ve mismanaged your finances, then a credit repair company won’t be an effective solution for you as their purpose is to identify errors on your credit report. However, if you have actual errors on your credit report and you can provide documents that verify the errors, or your lenders are willing to cooperate with your credit repair company, then using a credit repair company can be of benefit.
As with any other service, be sure to choose a reputable credit repair company. Read reviews, check out a few companies before committing to one, learn what they are willing to provide for you, and be sure to read the fine print on any documents they ask you to sign.
There is also the option of tackling this issue on your own, without the help of a credit repair company. Just like what they might do for you, you can also request your credit report, assess if there are any errors or issues with it, find the proper documentation to back up your claims, and wait for the changes to happen. This route might take a lot longer, particularly during the “challenge” step, as it can be very frustrating. Some might choose to go with a credit repair company to save time and energy.
Note that credit repair is very different from credit rebuilding, although they sound very similar. Credit Rebuilding is participating in financial products (e.g., Climbloans.ca) that will assist in improving your challenged credit situation. These products demonstrate to lenders your goal to build up your credit score so that you can access more and better financial options in the future. This type of service arms you with the knowledge to turn your financial health around, laying down a strong foundation for proper fiscal practices. Credit repair is more a quick fix service to help navigate your credit profile with the credit bureaus.
At the end of the day, there is no instant magic fix for your credit report or credit score. The best thing to do is to partake in good financial practices, such as ensuring paying your bills on time, do not participate in payday loans, keep your credit card balance low, preferably paid off monthly and no NSF’s (Non Sufficient Funds).
For more tips on how to maintain a good credit standing, read on here. Thankfully, even if your credit score is low because of poor financial practices, that number doesn’t follow you around forever. Learn about how often your credit score and report get updated here, and check out five manageable ways to improve your credit score here.
Looking for more help with improving your financial health? urLoan is here to help with that by assisting with getting you on a positive track to financial health. We offer flexible term loans that’s easy and hassle free that can help you rebuild your credit.
Learn more about how UrLoan can help you with your financial needs and call us at 1-855-723-5626.