Credit Repair Services – Should You Use One

Credit repair services promise to clean up errors on your credit report and help you get back on track with good financial behavior. But if you’re in the market for one, make sure it’s legitimate by researching reviews from reputable sources like Google Reviews, Better Business Bureau (BBB) and Yelp. Also consider the upfront and monthly costs of each company before signing a contract.

The best credit repair services do the work for you by obtaining your credit reports and identifying inaccurate information, which they then send in a letter to the credit bureaus and creditors asking them to remove the incorrect items. The goal is to have all the inaccuracies removed as quickly and as thoroughly as possible, but keep in mind that repairing bad credit takes time. Regardless of whether you use a credit repair service or do it yourself, monitor your credit scores regularly to see how they’re improving.

A legitimate credit repair company will provide you with a contract stating clearly the services it offers, how long it’s going to take to see results and what the total cost will be. The contract should also state that you can cancel within three days without penalty.

Before you choose a credit repair company, read the fine print and make sure it follows state and federal laws. These include the Credit Repair Organizations Act, which requires companies to give you a written contract before starting their services. It also requires them to provide you with a copy of your consumer rights under state and federal law. If a credit repair company doesn’t follow these rules, it’s probably not worth working with.

You can also try to repair your credit on your own for free by disputing errors directly with the credit bureaus and creditors. But this process can be complicated, frustrating and may not produce the results you want. If you have the patience and determination to do it yourself, you can save money and potentially improve your credit score faster.

While some consumers prefer to use a credit repair company to handle the process for them, others find it easier and more effective to do it themselves using tools such as online applications that can help you identify mistakes and submit a dispute letter to the credit bureaus and creditors. If you do opt to go with a credit repair service, we recommend choosing one that provides educational resources and offers a money-back guarantee in case the repairs don’t work as promised. You’ll also want to consider a company that’s been in business for many years and has a strong BBB rating. In addition, look for a company that’s licensed to do business in your state. You can also check with your local consumer protection agency to see if there are any complaints filed against the company.