If your credit isn’t the greatest, you probably already ‘kinda’ have a ‘feeling’ about it. You may have an idea based on collection letters received, debt collectors calling, and even threats to take you to court. You might have asked yourself, is credit repair worth it? You’re not alone in that worrying feeling, but what can help you is knowing that you have a choice, and help, to get out of it. Your credit is especially important if you want to make a major purchase like a home or car, or are just plain tired of feeling like money runs your life, or more importantly, the lack of money that runs your life.
It can be difficult to understand what affects your credit report and what repairs it, but getting a free copy of your credit report is a great place to start. When you know where your score actually is, then you can decide is credit repair worth it.
Why You May Need Credit Repair
If you are happy the way your finances are running with bad credit, then don’t change a thing. If you want to plan for a future event, yearn to own the place you live in, or want to finance your education then you may want to consider enrolling in a professional credit repair program. Things that change your life usually require financing and you definitely want a solid credit score to successfully achieve those goals. You certainly can secure some of them with a less than perfect credit score but in the long run you more than likely will end up paying more than someone with a good to excellent credit score.
For any type of credit like a loan or mortgage, the interest rate you repay depends on how much of a risk you are. In other words, what your credit score is. It’s a simple equation – the lower the score, the higher the interest. So, is credit repair worth it? If you knew you could secure a better rate that would save you thousands of dollars by waiting six months to repair your credit, would you?
Get Help If Needed
Like most people, if you get your credit report and are completely overwhelmed, talk to someone who knows how to interpret your credit report and understands the consumer protections laws to help you get the results you are seeking. You may want to contact a credit repair agency and work with them to improve your credit scores. A reputable company will help you dispute any discrepancies, help to resolve them successfully, educate you on the best practices on rebuilding positive credit, and ensure you have the best chance possible at reaching your financial goals. Not all credit repair companies are the same. As with any product or service, not everyone will fit your needs. Do your due diligence and research each company thoroughly before deciding which one to hire when asking yourself is credit repair worth it?
Now, can you repair your credit report on your own? Most definitely! Here are some tips to get you started.
What you need to do to dispute inaccuracies and/or errors on your credit report:
- Contact all three credit bureaus and request a free credit report.
- Review it thoroughly and see if there is anything that needs to be corrected. Ex: errors, inaccuracies, unverifiable information, etc.
- Dispute anything that you feel has incorrect details or is a debt that you don’t recognize. Not everything may be incorrect as the language used isn’t easy to figure out, but each discrepancy needs to be noted a difference case.
- Using the reference number supplied, question the credit bureau how they verified the entry as instructed in FCRA Section 611(a)(7). You will need to open up a dispute for each discrepancy.
- Obtain the phone number that they used for verification and call them to ask for a copy of the report they submitted. Remember you are likely to be passed around several people, several departments and have to make several long phone calls to get any information.
- If you are informed that the debt went to a collection agency, call the collection agency and ask them what records they hold and ask for a copy of them. Again, be prepared to call several times and speak to a whole range of people to get some information.
- When you receive it, call the bureau again and dispute the information with them. This may involve opening up more cases and speaking to more people.
Remember, the consumer protection laws are there to protection you the consumer. While the laws may be intimidating to break down and understand, they will definitely aide you in your efforts if you take the time to fully interpret them.
Credit repair can turn out to be a complex and time consuming process for some individuals and that’s where hiring a credit agency can have a distinct advantage. The quicker the debt is reconciled, the quicker the credit score is raised and the sooner you can move forward with your major life purchase. Sometimes it only takes one minor credit report issue to cause major problems. For some, the experience and know-how of a seasoned credit repair agency is worth the cost of the service.
A credit agency is definitely not a magic wand you wave and all your bad debt will go away, but your credit score will rise with every correction made. Good credit repair companies work hard to do everything possible to improve your score. It is just a matter of going through the credit repair process and applying any advice they may provide.
Is credit repair worth it? Raising your credit score is always worth it as it gives you more choices/buying power when it comes to major events in your life. Never underestimate the power of good credit, and definitely never underestimate the power of a good credit agency in helping you get it.
Watch This Video On How Credit Repair Works: https://www.youtube.com/watch?v=SZjQ-J2c29w