Many people fail to understand how their credit rating affects their everyday lives. However, it represents a shock when they learn that they are unable to take out a loan, for a home, car, or even an emergency, due to their bad credit scores.
This is where the professionals step in.
Here, we answer the most frequently asked questions to give you a clear idea about what these companies are about and what they have to offer to improve your credit.
Is credit repair legal?
It is not only legal to go to credit repair companies but also your right under Federal Laws.
What laws require you to go through credit repair companies?
The Fair Credit Reporting Act, Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act are Federal Laws that allow you to get credit bureaus to remove any errors from your credit report.
Can I repair my credit by myself?
It is very much possible to repair your credit report on your own. The best way to go about it is to acquaint yourself with the Federal Laws that concern consumer rights, as well as credit reports and other finances.
Moreover, you would also have to familiarize yourself with the processes involved in credit repair. These laws and processes are quite extensive and time-consuming.
That is the reason that credit repair companies are so popular when it comes to increasing your credit score.
The team of knowledgeable professionals, not only knows the laws they are skilled at negotiations and the processes involved in credit repair.
Can negative items be removed from the credit report?
It most certainly is a possibility to remove negative items from your credit history. In fact, there are credit repair companies who do so with amazing alacrity. Even items like foreclosures, bankruptcies, and repossession are effectively removed from the credit report.
Can credit repair help me even if my credit is really bad?
As mentioned earlier, negative items can be removed from the credit history, even if it is something as big as a foreclosure. The only thing to remember is to work on your credit rating promptly to remove errors that way; your credit rating is not so severely affected.
Does working with credit repair companies really help?
Yes, many reputable credit repair companies do show positive results for clients. However, it is advised to go through a thorough background check to ensure that you are not dealing with a scam.
A recent report revealed that 48% of paying credit repair clients received a 100 plus credit score gain.
How long does credit repair take?
There is no specific time involved when it comes to improving your credit history or removing a certain negative item.
Many factors, such as your current credit rating, your credit strategy, your financial standing, and even your financial goals, matter when you talk about improvement in your credit report.
Can I cancel anytime?
It is a definite possibility to cancel at any time. However, most established companies will recommend you do so only after you have reached your desired credit score.
The conclusion
It is not the end of the world, as many people believe, who suffer from a drop in one’s credit score. The damage is most definitely repairable.