If you have a bad credit score, credit repair is something you should consider. Credit repair enables you to dispute and correct inaccurate negative items on your credit report. Many negative accounts can be inaccurate due to debt repayment. Missed payments can occur when you are on a repayment plan with reduced payments. Negative accounts are only allowed to stay on your credit report for a certain period of time. However, debt collectors are allowed to change this purge-from date.
Legitimate Credit Repair Companies
A good sign of a legitimate credit repair company is the fact that they won’t charge you for the initial consultation. Some of these companies will even try to set up monthly payment plans. But you should be wary of any company that makes a guarantee that they will improve your credit score instantly. These are generally scams that will only leave you without any improvement. Instead, look for the assurance of a positive increase in your credit score after the completion of the service.
Applicants with poor credit scores should be aware that landlords will often check their credit reports during the application process. If they find negative information on their credit report, they will be more likely to reject their application for a new rental. Additionally, most employers will run soft checks on applicants with bad credit, and they will be less likely to hire an applicant with a poor score. By working with a legitimate credit repair company, you can improve your credit score without having to look for a co-signer. To get started, get credit repair help at SFgate.com.
Signing a Contract with a Company
Credit repair companies should never demand payment in advance. This is against the law, but many companies will charge a one-time startup fee, which may include a credit review or account setup. In addition, most companies will charge a monthly fee of between $50 and $100. To avoid this scam, make sure to carefully read the contract before you sign it.
Before committing to a credit repair company, you should read their contract. It should clearly explain what services you will need from them, including timeframes and guarantees. You should also understand that you have the right to cancel a credit repair contract without penalty after three days. You can also check the Better Business Bureau’s ratings and read reviews posted on sites like Yelp to find out if the company offers the services you need.
Keeping Track of Your Credit Score
Keeping track of your credit score as you work to repair your credit is essential to keeping on top of your progress and learning about the factors that affect your score. There are several free services that offer credit monitoring and education. If you’d like to improve your credit score without paying anything, try upgrading your credit score with Upgrade’s Credit Health. These services offer a monthly credit report and education for free.
You can repair your credit score by examining your credit reports regularly and disputing any inaccurate information. Once you’ve disputed any inaccurate information, the credit bureaus have 30 days to respond and remove any incorrect or unverified information. The Fair Credit Reporting Act protects the process and ensures that you are not penalized for making mistakes. However, if your credit score is low, it can make it difficult to qualify for a loan or other credit approval.
Avoiding Fraud and Scams
Doing your own credit repair is possible, but there are many risks associated with using a third-party company. For instance, credit repair companies can assign you a fake Social Security number, a number stolen from children. Some even tell you to apply for an Employer Identification Number (EIN) instead. The truth is, an EIN is valid but you can’t use it to repair your credit if you’re not a business.
Scammers often use new technologies and incorporate recent events into their schemes. While some scammers have gotten smarter and are now using cryptocurrencies and e-commerce websites to prey on consumers, the goal remains the same. Scammers may also use pressure tactics, such as asking for credit card numbers and sending fake at-home tests. Regardless of the method, you should follow basic safety tips to protect yourself.
Make Timely Payments
One way to improve your credit score is to make timely payments. Defaulting on a credit card payment or loan can lower your score by 110 points or more. Hard inquiries remain on your credit report for two years, and their impact is removed after that period. Nevertheless, if you’ve recently experienced credit card inability or missed payments, credit repair may help you repair these items and increase your score. While the process of credit repair does not increase your score, it does help you to understand what goes into a credit report.
Credit repair companies promise to restore your credit score, but this service isn’t cheap. They charge $50 to $100 per month to work for you and can’t guarantee that your score will go up. Alternatively, you can take a credit counseling class for free from nonprofit organizations like the National Foundation for Credit Counseling. However, credit repair may take several months to work, so you won’t see the results right away.