Credit & Credit Repair

Countless Americans every year hire credit repair companies to fix their credit. Is this a good move or bad move? Let’s go over some of the pros and cons.

The Pros that they present to you:

1. “I don’t have to do anything but sign up”. This is a complete fallacy, people believe that out of sight, out of mind; but it literally is not the case. You constantly have to keep in touch with them. You will see more of this as the list goes on.

2. “They have a more professional touch and they are able to achieve things the everyday person cannot”. Not true, everything they can do for you, you can do yourself.

3. “You don’t have to worry about the learning curve involved in the laws and staying up to date on the laws”. Well, there is a small amount of laws out there that you really have to learn. The odds of you having to learn and understand an entire statute to fix your credit is slim. Not to mention with all the free help put there, why hire someone?

4. ”They have all the letters and the know how to deal with the credit bureaus”. Again, this isn’t exactly true either. The bureaus have become much more consumer friendly and are more willing to help the consumer than ever before. The letters can be downloaded off the internet all over.

The cons, or what they will not tell you:

1. You pay them to do what you can do for free. They don’t have a magical wand they wave and make your bad debt disappear! The majority of these credit repair companies operate in 1 of 2 ways.

                a) They charge you by the item they get removed or fixed on your credit report
                b) The charge you upfront fees and then don’t perform the way they told you they would

2. They make guarantees they cannot keep. There is no way anyone in the credit repair industry can make you any guarantee they will get anything removed from your credit report! I am sure you have seen or heard this before and I am sure you are asking yourself right now, why? Well the truth is the credit bureaus are not required to remove anything from your credit report. Most of the time you have to rely on a creditor not responding to the credit bureau’s request for information or the item not being yours in the 1st place and therefore it will be removed because it cannot be verified.

3. You have to order your credit report, you have to receive your credit report, you have to mail your credit report to the people who are fixing your credit report, and you have to communicate with the people who are fixing your credit. If you work on repairing your credit yourself, everything comes directly to you anyway; so there is no one else to mail or send anything to. In the above listed example YOU become the middleman! Why go through all of that when you can spend a few hours researching credit repair laws, download a few letters and you will be on your way.

As you can see, they really are not doing anything for you but saving you a few hours of time and taking your money. I guess each of us has to put a price on our time and assign a dollar figure to our time to determine what is best for each one of us as individuals. However I will tell you, if you are going to use one of the many credit repair companies that are out there, make sure you do some research and find the right one. Do not accept what a person or a company says as the be all end all.

Credit Repair Companies and Their Pitfalls10.0101Share on Facebook

Tags:credit,Credit Repair,Credit Report,debt

Related posts

• So What Do You Dispute On Your Credit Report? (0)
• Restoring and Repairing Credit – The Grind! (0)
• Credit Repair Patience (0)
• Credit Repair Companies – How Do I Find the Right One? (0)
• Credit Repair – How Hard is it Really? (0)
• Credit Counseling – How Do I Know If I Need Help? (0)
• Epic Internet Ventures purchases The United Credit Authority (0)

Tags: credit, Credit Repair, Credit Report, debt