Credit Education 101
Website CertifiedPrivacy Protected
Credit Education > Credit Repair > What Can A Credit Repair Firm Do For You?

What Can A Credit Repair Firm Do For You?

By Janet Lacey
Published: Friday, December 4th, 2009

If you are in a bad credit situation, then you might find people advising you to go to a credit repair agency. The credit repair agency nowadays is being seen as the be all and end all for people with bad credit scores. These agencies are supposed to remove bad credit totally, create new identities and legally erase all your legitimate debt. 

Given all this, wouldn’t you want to approach a credit repair agency to get out of your own bad credit situation? If you are a well aware, responsible citizen who does not want to be scammed, then your answer to the question should be a resounding NO. 

No? Why No? The reason why a credit repair agency should not be your first choice when you want to repair your credit is that a vast majority of these so called “agencies’ are there to make money for themselves, not you. 

Credit repair agencies promising to erase all your legitimate debt and create a new identity are not only trying to fool you, but they may also get you into legal hassles and land you in jail. This is not to say that legitimate credit repair agencies do not exist. They definitely do, but the services that they will provide are no different from what you yourself can do to repair your own credit. 

Yes, you can initiate and follow upon the process of credit repair all by yourself without the help of any credit repair agency. If you have doubts, then let us tell you about what a legitimate credit repair agency can do for you: 

Get access to your credit reports, analyze them and find errors. Errors on credit reports, which may occur due to wrong reporting by credit agencies, identity mismatch and bad record keeping are very common in credit reports. These errors may be bringing your credit score down and therefore, finding them and getting them removed is the first thing that a credit report agency will do. 

Contact all credit reporting bureaus to get errors from your credit report removed and follow up on the process till this is achieved. The removal of wrongly mentioned negative items will automatically bring up your credit score and clean your credit report within one to three months. 

Negotiate with your debtors. Many credit repair agencies will call up your debtors, credit card companies and banks to explain your financial position to them. Once this is done, they might ask your debtors to provide you with better terms of repayment, or to waive off certain charges like late fees or very high interest rates that are making it tough for you to pay back the principal. If your situation is very bad, then some agencies may also request for a reduction in the principal amount to be paid back. In most cases, many debtors will write off some part of the payment or reschedule your payment term such that unpaid bills no longer show up on your credit score. This in turn can lead to a major improvement in your credit score. 

The tasks given above are the max that any legitimate credit repair agency will carry out for you. Of course, they may also provide you with advice and counseling, but apart from this, you can do all the things that the credit repair agency is doing for you yourself and save yourself credit repair fees. 

Turn to a credit repair agency only if you do not have any time to repair your credit yourself and when you have extra money to spare for the same! Otherwise, with some patience, hard work and perseverance, you can easily repair your credit in a do-it-yourself manner.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.