Does credit repair really work? If you need credit repair services, then you are probably debating this very question. Some credit repair companies will tell you that it is a simple process. Others will tell you that they can perform fast credit repair in a month. These companies are the reason why this debate even takes place as anyone who has undergone credit repair will tell you. The best credit repair companies will also tell you that it is a process that begins and ends with you. Their credit repair services depend solely on your ability to overcome challenges.
How Do I Navigate Credit Repair?
The most important step in changing your financial situation is knowing it in the first place. It gives you a place to start which helps you develop an infrastructure and a path to follow. As you move forward, you will need to identify the problems and put into place solutions that will move you forward to a fully recovered credit reputation. So, where do you start? In the beginning, of course, by defining what you want to achieve and the actions you need to do it.
As you will find out, there is no perfect solution to fast credit repair. It is a process that requires you to learn about credit bureaus, FICO, scores, credit repair companies, and practices. Once you understand how each work, you will have the knowledge you need to apply it to your situation. To begin, you need to get a free credit report so that you can create a roadmap to move forward.
- What is your score?
- Is the information on your credit report correct?
- Do you have any unpaid bills or judgments?
- If so, are you financially able to repay them in full?
- If not, what type of repayment play can you set up?
If you are unsure of how to go about rebuilding and repaying your creditors, it is advisable for you to research and find credit repair companies like Lexington Law Review or Sky Blue who understand how to quickly reach your creditors and set into place a repayment schedule. Not only will it reflect quickly on your credit score by raising it a few points at a time, but it lets lenders know that you are now becoming a responsible consumer that is worth investing.
The first step to take if you want to restore credit is to get a copy of your credit report. This will help you understand how the credit bureaus get your credit score. Talking to a reputable credit repair service can help you with this because an experienced credit counselor can explain to you in detail how credit works.
Once you’ve gotten your reports, the next step in repairing your credit is to look at the negative marks on your credit score. These negative marks are usually accounts that have gone into collections or been charged off. There also may be judgments against you for things like a car loan or other outstanding loan debt. Negative marks carry a lot of weight when it comes to determining your credit score.
You can dispute negative marks that are outdated or have been paid off. A credit repair service can help you file disputes and get rid of anything on your credit report that isn’t accurate. Just that small step can sometimes boost your credit score.
After you have gotten rid of the inaccurate items on your credit report, you need to make a plan to get those negative marks removed. A credit counselor can help you make a plan to attack those negative marks and get them paid off. Credit counselors can also negotiate with collection companies on your behalf to reduce the amount that you owe.
What Can The Best Credit Repair Companies Do For Me?
Great credit repair companies know how to clean your credit history with the three primary credit bureaus. The first thing you will do is sit down with a repair expert and validate the information in your report. When you identify errors, it is the job of the credit repair representative to dispute them for you. Nearly eight out of ten people who dispute errors get them successfully removed. Second, a repair expert will notify and negotiate with your creditors in writing that you want to repay them. It sets the stage for past debts, but what about the future?
Perhaps an essential part of working with credit repair experts is the knowledge you gain about future consumer behaviors. Each credit card charge, each late bill, and each financial decision you make will affect your credit score either negatively or positively. In order for a credit repair expert to truly be effective, he or she must teach a consumer how not to fall back into the same buying patterns that created the low credit score to begin with.
Who Are The Best Credit Repair Companies To Work With?
As we previously identified on Your Personal Finance Tips, Lexington Law and Sky Blue are two of the most credible and trustworthy credit repair companies in the industry. After the initial consultation and credit reputation analysis, a consumer will receive a credit report from Experian, TransUnion, and Equifax as well as itemized information on areas you need to improve upon. While both companies have exemplary reputations, their business models vary.
When it comes to the legalities of ethical credit and repair, hiring a credit repair company that is also a law firm is one of the smartest decisions a person can make. There are many legal issues that arise since finances bring about complex issues like identity thefts, legal judgments, and bankruptcy filings. A law firm that specializes in credit repair often bring about better results than other companies in the field. Lexington Law also sets in motion a plan to bring about your desired results before they charge you a fee.
- Free Consultations
- Has An A+ BBB Rating
- Has Affordable Fee Schedules
- Very Quick Turnaround Of Compliance And Resolutions
- Has A Credible Reputation With Credit Bureaus
Sky Blue has a reputation as an affordable and reliable credit repair company. Along with a 90-day guarantee, the company provides the ability to pause memberships while evaluating how their techniques are helping you raise your score. Not only will Sky Blue repair your credit reputation, but they will work with you to navigate new credit accounts. They also monitor your FICO score to ensure your credit remains repaired.
- Offers A No-Hassle Cancellation Policy
- Offers Discounts For Couples
- Has An A+ BBB Rating
- Offers Affordable Rates
- Works Quickly To Raise FICO Score
Lexington Law and Sky Blue understand the value of careful analysis of credit reports. Experts know how to separate the two and then use legal maneuvering to remove errors. They also know the legalities of credit and ask companies to verify the debts. If companies are no longer in business or do not confirm the debts, credit bureaus must remove them from a report. Little known actions like this do count as fast credit repair services although in the long term, many things must take place before a consumer reaps the full benefits of credit repair services.
Want to learn more about these two top names? Read our review here.
As we started this article out, successful credit repair depends on your ability to set expectations and work to see them through. No company can guarantee success as you are the most important part of the equation. As in all things, knowing where you stand and what it will take to succeed will give you the best outcomes which are why we will continue to monitor credit repair issues.
After you have dealt with the negative marks that brought your credit score down, you need to work on managing your existing credit. A good rule of thumb is that you should not be using more than 30% of your existing credit. That means that if you are carrying a balance on any of your credit cards, you shouldn’t have a balance that is more than 30% of your available credit.
A credit repair service can help you create a budget that will help you pay off your credit card balances so that you aren’t carrying huge balances on your credit cards. Doing that can dramatically increase your credit score.
A reliable and experienced credit repair service will work with you to restore credit and teach you how to use credit responsibly in the future.