Poor credit can indeed cause a headache for most people. That’s not where the struggle ends. Bad credit can cause you more than what you have expected. You’ll be struggling with getting a credit card, personal loan, and many more. Most companies may use your credit to consider doing business with you.
Furthermore, credit is used to set pricing for the products and services you use. But what causes bad credit? Simply the cause of bad credit is when someone fails to pay bills on time. Thus, affecting the credit score and credit history of the person. One is considered a credit risk with bad credit.
However, there are ways on how you can fix your bad credit. Credit repair companies offer help to improve your credit and financial situation. If you are planning to use one, here are the things you need to know first about credit repair.
What Is a Credit Repair Company?
Credit repair companies are basically organizations attempting to remove your credit report information. Of course, the service is not for free. The services they offer are in exchange for payment. As mentioned, their service is for-profit and with its primary purpose to help people improve their credit. The credit repair services are considered legal.
It is essential to give you an overview of how a credit repair company works. The credit repair company will communicate with the credit bureaus or the company on your behalf. Commonly, companies like financial services, banks, and credit card issuers are the ones furnishing your credit information.
How Does It Work?
Most credit repair companies solve the problem by simply asking for a copy of your credit report. After that, they’ll review your credit report for any negative information. The negative information found in your report will most likely appear as a “derogatory mark.” These derogatory marks can mean a charge-off or when a debt collector decides that collecting a certain debt is hopeless, failed or missed tax payments, or even bankruptcies.
These credit repair companies intend to either delete or modify the credit information. They will then find a way to make the situation more favorable for the consumer. The credit repair company will create a plan that may include asking to validate information, dispute negative marks, and a cease-and-desist letter.
These companies may recommend you other options like opening a new account. However, one should take into account the possibilities of every action. You can opt to find the best in the given option with the help of the right company. If you are unsure about what company can help you, you can visit https://www.crediful.com/credit-saint/ to get you started.
How Much Does It Cost
You are probably curious about how much credit repair costs. Commonly, the amount you are going to pay depends on the credit repair company you chose. However, credit repair companies should follow the rules. These companies should not get or request payment until they do what needs to be done.
You might pay a one-time flat fee, monthly, or pay-per-delete. Monthly payment may cost from $50 to $130 or more. The pay-per-delete payment method can cost around $35 per delete. This means that the credit repair company will only ask you for payment after every credit report item is deleted.
Most customers prefer the pay-for-delete method as they feel more satisfied. Simply put, the customers only pay for tangible results. However, before proceeding with any decisions, one should consider how much cost you will need to get your reports done.
How Long Does It Take To Repair Credit?
In most cases, credit bureaus only have 30 days to investigate disputes and verify information in your credit report. Furthermore, the credit bureau will communicate with the company who provided the information for it to investigate.
The credit bureaus should follow the required five business days to communicate the investigation results to the customer. Thus, the investigation results should be sent to the customer on time. Whether the dispute is determined as “frivolous,” the credit bureau still has to communicate it with you.
What To Remember
Whether you want to do it yourself or ask help from a credit repair company, one must practice extreme caution. Though many credit repair companies claim to have deleted negative records, there are still some complaints about it. It is essential to make sure you are doing things with the right people.
To ensure you are safe from any fraud or scams, the company must give a written contract. The contract must include your legal rights and the services they offer. Furthermore, the customer should be allowed to cancel the transaction within three days without fees. Lastly, the company should do what they have promised to provide you.
Having good credit is a goal for many people. Maintaining good credit equates to multiple benefits. However, due to the problems along the way, credit problems may occur. Consider finding a trustworthy company that can help you with your concerns. Having professionals do it can be beneficial as they take charge and do most of the work for you.