Key Credit Repair

Credit Repair Companies – Are They Worth the Cost?

Decided to get your financial house back into shape? If your credit report has pages and pages of negatives — or, you don’t aren’t even sure how and where to get your reports in the first place — you may have considered handing the job to a credit repair company. But, is it worth the cost? While you are able to do everything on your own that a credit repair company can do for you, there are still many benefits to handing this job to someone else. A quality credit repair company can give you:

Experience

You, generally, deal only with your own credit history. Credit repair companies help thousands of people every year clean up their credit records. They are familiar with the steps you need to take to remove unsubstantiated or incorrect negatives and how to negotiate debt payments to get you back into shape.

Perspective

Finances are a very emotional area. Looking at persistent errors on your credit report can be incredibly frustrating. After divorce or having co-signed with someone who has been irresponsible, you can be left with debts and negative marks that, while legally your responsibility, are patently unfair. And, it’s not uncommon to feel guilt when looking at the results of your own past financial mistakes in the form of red marks on your credit reports.

All of this can lead you to make costly mistakes during the credit repair process or even avoid the process altogether. You can be tempted to pay a debt just to get rid of it when you are not legally bound to do so. And, if your answer is to put all the papers in a drawer and deal with them later, you put off important accomplishments like buying a home of your own. A skilled credit repair expert has the distance to make wise and logical decisions about those negative marks on your credit and can make recommendations on how to add positive entries in the future.

Time

Sometimes, you need to contact a creditor several times to get erroneous entries removed from your credit report. Untangling which debts have been included in a bankruptcy can be frustrating and tedious. Your time is valuable. Between work, commuting and other commitments, you may not have the hours available to dedicate to what can often be a time-intensive process.

When you hire a credit repair company, you have a professional dedicated to taking whatever time is necessary to straighten everything out. Outsourcing this task leaves you free to spend your time in ways that are more valuable to you.

Every person’s finances are unique. Each person needs to make decisions based on his or her unique situation. But, if your credit is standing in the way of your home ownership dreams, consider seeking the help of a caring credit repair professional to get you on your way.

Key Credit Repair

Credit Repair Companies – What They Can’t Do

Credit repair companies can be immeasurably helpful when improving your credit records. They can put in the hours that you can’t spare to get inaccurate entries removed and use their years of experience to negotiate fair and feasible payment plans on legitimate debts. Countless clients have seen their credit scores drastically improve after seeking help from a legitimate credit repair company.

But, they are not miracle workers. There are many things that no credit repair company can do. Run from any that promise any of the following:

Erasing Bankruptcy

Only time can make a bankruptcy disappear from your credit report. The amount of time it takes depends on the type of bankruptcy; a Chapter 7 bankruptcy remains for 10 years, a Chapter 13 for seven.

However, that doesn’t mean that the impact of your bankruptcy will last that long. The debts involved will age off more quickly. And, as you establish new, positive records, the bankruptcy will become less important as responsible credit use brings up your score.

Releasing You from Legitimate Debts

If a creditor can show that you owe a debt, it remains your responsibility. There is no way to make a legitimate debt disappear. It must be paid, discharged in a bankruptcy, or age off your credit report to make it disappear.

Many people have bad debts on their credit report in error. A credit repair company can seek verification of the debt and have it removed if the creditor cannot show proof that it is yours. A credit repair company can also help you negotiate a settlement for less than the full debt amount.

Giving You a New Credit Identity

There are some shady credit repair operations that will promise you a clean, new credit identity, free from your prior debts. There’s no kind way to say it: these people are scammers, plain and simple. The way to racket works is this: they register for an Employer Identity Number (EIN) for you. This is a nine-digit number that looks like a Social Security number. However, it is not used the same way; it is meant to be used by companies for tax purposes. Using an EIN in ways other than it was intended is against the law, and can result in hefty fines or even jail time. Don’t let these underhanded businesses ruin your good name.

Getting You Loans You Are Not Qualified For

A credit repair company can help you put your best financial foot forward by cleaning up your credit report and recommending actions that will boost your score. But, they can’t get you a loan that you are not qualified for; your income, credit history and other often immutable factors determine what deals lenders will extend.

In any financial situation, educate yourself and be realistic about outcomes. By knowing what you can reasonably expect, you can better plan for the next step in your financial future.