How Do Credit Repair Companies Work?

There are many credit repair organizations to choose from but how do you know if one will help you more than another? To be honest, there really isn’t a sure way to say whether a particular credit repair organization is going to be better or worse for you than another. Everyone’s situation and credit situation is different so one credit repair company might not be as good for you as another. The best way to find out if a particular credit repair company will be helpful for you is to take a look at their track record and contact them.

Most credit repair service companies have websites that they use to advertise. You can often look at their website and see what kind of things they tell you they can do for your credit. Sometimes they will be specific about what their services include and sometimes they will leave the door wide open. If the credit repair service has a specific answer to any question you have then it is probably a good bet they can help.

A good credit repair company will explain to you what they can and cannot do. Usually, they will list out all the three major credit bureaus in the United States. They should also tell you how they arrive at their decisions and why. For example, they may look at your credit reports and find some errors, contact the bureau and make the necessary corrections. Then they will explain to you how these mistakes will affect your credit reports.

Some credit repair companies like to promote a payment per delete option. This might sound great because it seems like a great way to avoid paying anything off. However, if you don’t have a large debt then this might not be the best way to pay off your debt. It is important to understand when you sign up for a pay-per-delete agreement that you are waiving your right to a trial. In order to cancel this service, you must send a letter to the credit card company informing them that you have agreed to the pay-per-delete agreement.

Finally, the credit repair company will take you through the entire process. They will contact all of your creditors and work out a settlement. You will make one payment to the credit repair company and they will divide it between your creditors. They will then issue you a final report that contains everything they reported to the three credit bureaus. The final report will include any payments you have made as well as the final amount owed to your creditors.

Sometimes the credit repair companies will also offer their own solution to repairing your credit. Sometimes this includes reporting information to the three major credit bureaus that can help you increase your scores. However, before you decide to do this service yourself, you need to compare the services of a few different companies. It is also important to check to see if the company’s fees are reasonable. If you have made mistakes in the past, you might find hiring a credit repair agency to fix those mistakes would be a better option.

This post was written by Kristian D’An, owner of Lux Credit LLC and CCA board certified credit repair specialist. Lux Credit offers best credit repair for those looking to improve their credit!