Your credit score determines a lot of things in life. A poor credit score can keep you from securing an auto loan, being eligible for an apartment lease. It can also determine the interest rate on any credit card that you apply for. That is why having a good credit score is so important, but how can you get a good credit score if you currently have a bad one?
Credit issues are sometimes complicated, and improving one’s credit score can be a very time-consuming endeavor, which is why many people opt to hire professionals to assist in improving their credit scores. These professionals are employees of credit repair companies.
A credit repair company is a business entity that offers to improve the client’s credit in exchange for payment. You can hire these active companies to raise your credit score. Once you hire one, they typically go about improving your score by first requesting your credit report from each of the three major credit bureaus.
They look for derogatory marks such as charge-offs, bankruptcies, and tax liens. They also look for possible errors in your report that could be negatively affecting your score. Then they usually petition for these marks to be dropped off your record or negotiate with the creditors to make your report more favorable.
Once they have done everything they could on their end to amend your credit report, a good credit repair company will then work with you directly to devise a financial plan that will keep you on the right path towards better credit. There are a lot of essential questions that get asked of these companies during this process, which include:
How Long Will it Take to See an Improvement in my Credit?
Most people have specific plans and goals which is why they reach out to credit repair companies in the first place so questions often get asked about how long it will take a company to improve one’s credit.
The length of time it will vary greatly depending on the situation, but there are usually simple steps that can be taken that make an immediate improvement. A credit repair company can request certain frivolous marks against your credit be removed, and creditors will usually comply with these requests. So a good credit repair company can make a slight improvement in as little as a month.
If a request for an investigation is made on the client’s behalf, the reporting bureau has 30 days to complete the investigation to determine if any mark should be stricken or sustained. Of course, the bureau has the right to review and deny any request for an inquiry if they deem it to be dubious.
Sometimes though it is not as simple as sending out a letter and improving a client’s credit can take up to a year. This usually happens when litigation must be involved to dispute fraudulent reports from crediting entities.
Do you Offer A Money Back Guarantee?
What if a client’s credit cannot be improved? There are certainly cases that can’t be helped so what if you hire a credit repair company and they can do nothing for you? These situations are why so many companies hear questions about a money-back guarantee.
The truth of the matter is that most reputable credit repair companies will not ask for money upfront. The credit repair industry is rife with scams, and one of the most telling signs that you are dealing with an illegitimate organization is if they ask for money before any services are rendered.
On the flipside, almost all respectable credit repair companies will not charge you if they could not improve your credit score and they will never guarantee results. They will usually offer a free initial consultation wherein they will assess your situation and how they might be able to help. Or not.
What Kind of Information will I need to Provide?
The reason people opt to work with credit repair agencies is there is usually a lot of confusing red tape, and the process takes a lot of time. So one concern that is often expressed relates to how much of the client’s time will need to be committed to the process and what kind of information or documents they will need to produce.
Most companies will request things like a list of current debts, payment histories for existing obligations, and if possible, the client’s credit utilization rate. This will involve gathering some documents and also giving the company access to any credit monitoring software that the client uses.
Hiring a credit repair company will usually mean a correspondence will open up between the company and creditors and the credit bureaus. All correspondence letters are sent to the client’s address, and they will need to either physically give copies of these letters to the company or send them digital copies.
There is no improving your credit without being directly involved in the process and carving out at least a little time to work with whatever company you hire so you should avoid any company that says they will take care of everything for you as they are probably trying to scam you.