As a panacea to bad credit score, credit repair was born. Credit repair can be done either by hiring credit repair companies or by using a DIY approach.
When you find yourself in the situation of a bad credit score, it is normal to feel an unhealthy amount of pressure. This is often due to higher interest rates on loans and sometimes an inability to access loans.
Credit repair is important because it goes a long way in helping you achieve most of your financial goals thereby assisting you to live a happier life.
However, is credit repair feasible?
Credit repair, as earlier said, may be done in two ways;
- Hiring a credit repair company
- Using the DIY approach
You must have seen adverts by companies both on TV and online about helping you fix bad credit, and you may be wondering how feasible this is. A statement that was released by the Federal Trade Commission said that there are no real credit repair companies. Most of the companies you see are a fraud. However, some credit repair companies’ reviews have shown that a few of them know how to go redeeming your bad credit score.
Here are the names of a few reliable credit repair companies in the U.S – SkyBlue, The Credit People, Lexington Law, and CreditRepair.com. Each of these companies have their unique strengths in the credit repair world.
How can credit repair be done?
The best approach to credit repair is doing it yourself. However, credit repairs do not just happen because your score is low. It becomes feasible when the following factors come to play;
1. If there are unverifiable errors in your report
Every single detail or data on your credit report needs verification. If you have a negative score on your credit report from a credit company that may have gone out of business, the chances are that the bureau will verify if the firm’s data on your report is authentic. If they cannot verify, they will remove the information from your report, and that might score more points for you.
2. The willingness of your lenders to negotiate with credit repair companies
Some lenders are not willing to negotiate with credit repair agencies. Nevertheless, some agree to credit repair companies negotiating on your behalf.
If you are subscribed to lenders who are willing, a credit repair might be feasible, and you should see your credit score improving, and if not, you may have tougher times trying to maintain a good score.
3. If there are errors in your report
This is the most critical point where a credit repair agency comes in. Errors are not always present in credit reports, but when they do, it is the duty of credit repair agencies to eliminate these errors. The errors may be from your lenders or your personal information.
The more the error, the more adversely your credit score is affected and hence one of the situations where you might need credit repair.
Credit repair may not always be feasible in fixing a bad credit score but relying on a reputable credit repair agency is a whole lot of fresh air!