When people think about situations involving bad credit, their mind immediately turns to thoughts of scams and predatory lending. However, legitimate national credit repair services are absolutely worth the cost to hire them. The services these organizations provide are invaluable to people who are looking to rebuild their financial profile.
That said, without a good understanding of credit reporting practices and the challenges faced by people with poor credit ratings, it's hard to know exactly how these companies can help you. Here are a few of the most prominent ways that professional assistance can help repair your credit score.
Dealing With Reporting Errors
It's estimated that over 40 million people have errors on their credit report. Most of the time, consumers aren't even aware that these errors exist. When these errors are combined with financial hardship, the result is a dismal credit score. That's why it is so important to deal with these errors efficiently and effectively.
There are two major ways that credit repair services can help you deal with credit reporting errors. They are:
As a citizen, you have access to both of these options yourself. However, the experience that comes with handling thousands of these cases every year allows credit repair services to understand which actions will have the best chance of success. Also, they help the consumer manage the significant amount of work that proving a claim with documentation can require.
Working With Lenders
One of the major barriers to repairing a credit score is the continuation of past-due and late payments. Often, a serious financial event or a budgetary mistake has caused the consumer to be in a precarious financial situation. Monthly payments, then, are sometimes difficult to maintain.
Credit repair services have likely worked with the lenders on your credit profile in the past. Their network of pre-existing contacts in these lending organizations can facilitate the process where you alter the terms of your credit. This can make an unsustainable financial situation manageable--allowing you to make your payments on time and avoid further negative reports.
Providing Legal Protection
Sometimes, a negative credit report is the result of identity theft. In 2012 alone, over 24.7 billion dollars were stolen as a result of this type of crime. That figure doesn't account for the number of credit reports that were destroyed as a result.
Repair services can help you recover from the effects of illegal activity by identity thieves and by debt collectors. Furthermore, they can provide future protection against this type of activity while you rebuild your rating. Their experience in dealing with the negative side of credit reporting makes them uniquely suited for this task.
Teaching You About Credit
Most consumers only have a vague idea about how a credit score is generated. More importantly, they have very little concept about how to best raise a lagging score. Sure, making payments on time and saving money will help over time. But, what is the best way to use credit for the purpose of raising a credit score? What kind of credit lines are beneficial to the report? How much credit is too much?
A professional repair service is a fantastic resource for answers to these questions and more. They will know which credit strategies are the most effective at raising your score, and they can help devise a personal plan for your success. That way, you won't have to simply hope that your current approach is working as it should.
While it's certainly true that credit repair is possible as an individual consumer, repair services can reduce the time required to be successful by a significant amount. They help make a difficult time in your life as short as possible--and that's a truly valuable service.
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