Falling into financial trouble can be downright devastating. Debt will negatively impact your credit score and this can diminish your ability to achieve some of your goals. A bad credit score can affect your ability to get a job, take out a loan and secure a mortgage on a home. With this in mind, you should consider signing up for one of the credit repair services available to you. While many people believe these services to be a gimmick, this couldn’t be further from the truth. There are many legitimate credit repair companies and they’ll be able to provide you with numerous benefits.
Credit Repair Is Not A Magic Solution
It is absolutely essential to remember that credit repair services will not be a magic solution. These services will not be able to rectify the problem overnight, but they can help exponentially. Just remember, actions carried out by the credit repair company is simply a small step in the right direction. After working with a credit repair firm, you should also take additional steps on your own. Work diligently to ensure your bill and debt payments are paid in a timely manner. If you fail to do so, the credit repair company’s efforts will be all for naught.
Consider Debt Counseling
While some services are definitely a gimmick, debt counseling can be enormously beneficial. If you feel overwhelmed and hopeless, counseling can help steer you in the right direction. A credit counselor will work directly with you and your creditors. They’ll help to negotiate in an attempt to lower your monthly payments. At the same time, they’ll help you configure a Debt Management Plan that is suitable for your income and expenses. It may also be possible to have your debt consolidated.
This will eliminate multiple debts and condense them down into a single debt. While it won’t decrease the amount owed, it will help to greatly diminish the amount of stress on your shoulders. This is the case, because you’ll only be responsible for a single bill payment each month instead of two or three. And again, you will need to remain diligent and make sure your monthly payments are paid in a timely manner.
Identifying and Fixing Credit Report Errors
Every credit repair company has a specific business operation that is followed to a tee. However, the process will normally start with the request of the client’s credit report. An analyst will thoroughly study the report, pinpointing the major credit issues. Each credit-reporting agency relies on specific debt collection agencies, credit card companies and lenders, so there may be some discrepancies that are often overlooked. These must be addressed, since they impact your credit scores in a negative manner.
The credit repair agency will submit a written request for correction or deletion, with supporting documentation to the credit bureau. It may take up to 30-days to receive a response, unless the dispute is declared frivolous. The agent will then follow up by submitting supporting documented to the creditor, so they can report the same information directly to the credit bureau.