If you’ve watched TV late at night, you likely saw flashy ads promoted by companies claiming to be able to fix any credit score problems – like repossessions, late payments, or any other financial sins that might plague your credit report.
We’ll repair your credit for you for a monthly fee, and you’ll qualify for better credit card rates. Car loans, and other benefits that come with a better credit score.
It sounds enticing-and all the more so when they mention they offer aggressive representation.
Do credit repair services that charge a fee really work? Could you do it yourself for free, if so, what are they actually doing for you?
Your credit report can be a nasty piece of work. Just like the permanent record of all your school-aged misdeeds that are stored somewhere in the high school’s records.
It’s a living, breathing record of everything you’ve done financially, good and bad.
In addition to errors, it may also hold information that hurts your score. Such as old collections records from the folks you owe money to, and outdated credit card statements from those you owe cash to.
If you hire someone to handle these disputes, don’t expect results in one day.
According to William Lipovsky. CEO of First Quarter Finance, a personal finance website, legitimate credit repair companies are patient when repairing one’s credit.
“Dependent upon the complexity of your case, it could take as long as six months.
This leads to reliable credit repair services being more expensive than the scammers who promise low prices and quick turnaround.
There are however some credit repair companies that offer money-back guarantees as well.”
Investing in credit repair is also a wise move if you read online reviews.
According to Joyce Blue, a money and self-empowerment coach.
The number of incorrect items on your credit report will also determine how much damage you sustain.
The only way to stop debt collector calls is to hire a credit repair agency.
In particular, this is crucial if you have received letters from collection agencies because of your subpar financial management skills.
Credit repair is different from debt settlement, as Grant notes. Adding that many consumers mistakenly believe that credit repair can stop collections from hitting them.
Ensure that you read through your contract completely in order to understand exactly what services you’re getting.”
Debt relief option or Debt Management Programs where Ooraa Debt Negotiators negotiate with your creditor to let you pay a settlement amount which is less than the actual amount you owe.
Debt Settlement and Debt Consolidation are two popular financial strategies that can help you improve your debt load.
However, both these options function entirely different and both aim to fix different issues.At the heart of it, settlements seem to reduce the overall amount of debt that you owe while consolidation aims to reduce the bad credit loan.What Exactly is Debt Settlement?This is basically a series of negotiations with creditors wherein you try to reach an amount less than what you owe.
The monthly payment is also low.
For Example, debt settlement focuses mainly on unsecured debts.
So, tread accordingly.By current ‘interest rates’If the interest rate on your current account is particularly high, you might want to check out ‘consolidation’.
Even though the overall balance may be higher, you can always negotiate for a low-interest rate which lowers the overall cost of balance by letting you pay directly.
