Credit Repair Companies: Credit Repair Software

Have you ever wanted to use credit repair software to improve your credit score, In most cases using software to automate a task is a no-brainer. But is this true in every case, Let's examine the matter in regard to improving one's credit score. 1. Take the self-help approach - when you make this choice, you must become knowledgeable regarding issues related to credit repair. Even though there's a wealth of information on the Internet as far as repairing your own credit, it is not a simple task.

Many of those who attempt it find it overwhelming and come to the conclusion that the affordable fees that the average credit repair professional charges for their services is worth the cost. Nevertheless for those who choose the go-it-alone approach there's a tool to streamline the process - credit repair software. The software can automate many issues, such as credit score simulation (as a learning tool), generation of dispute letters, tracking, debt settlement negotiation etc..

2. Hire a credit repair company - when and if you feel that you do not have the time to learn all that it takes to do it yourself, you can get help from a credit repair agency. These, at reasonable cost, will take over the work of fixing your bad credit. These kinds of companies have and use credit repair software in order to enhance their efficiency. Is there a difference in the usage of the credit repair software in the above two instances,

When a person uses the software, he or she will depend heavily on the automation process minus a valid understanding of what the process is. For this reason a lack of knowledge and understanding renders the credit repair software less useful than it might be in the hands of a professional.

But when an agency uses the credit repair software they are knowledgeable in regard to why it's designed the way it is and what needs to be customized for best results. This is the reason why credit repair software in the hands of an experienced company works better than with non-professionals. The professionals utilize it to boost their efficiency - more as a tool; while the average person uses it without a clear understanding of the process.

Therefore, one might reasonably conclude that a better question would be not "is using credit repair software a good choice"; the better question is how best to use the software. Whether at the individual or agency level, maximum benefits when using this software are only achievable if you have a firm knowledge of credit repair. If you have a firm grasp of the credit repair process and use this software as a tool to improve your efficiency, the software gives you an awesome advantage; otherwise its usefulness is very limited.

You can do that yourself under the Fair Credit Reporting Act. For more information, see How to Clean Up Your Credit Report. Remove correct, but negative, information from your credit file. Negative items in your credit file can legally stay there for seven years or more (depending on the type of information), as long as they are correct.

No one can wave a wand and make them go away. One credit repair clinic tactic is to challenge every item in a credit file -- negative, positive, or neutral -- with the hope of overwhelming the credit bureau into removing information without verifying it. However, credit bureaus often dismiss these challenges on the ground that they are frivolous, a right that credit bureaus have under the Fair Credit Reporting Act.

You are better off getting your file and selectively challenging the items that are incomplete or inaccurate. Even if the credit bureau removes information that a credit bureau had the right to include in your file, it's no doubt only a temporary removal. Most correct information reappears after 30-60 days, because the creditor that first reported the information to the credit bureaus will report it again. Get outstanding debt balances and court judgments removed from your credit file.

Credit repair clinics often advise debtors to pay outstanding debts if the creditor agrees to remove the negative information from your credit file. This is certainly a negotiation tactic you want to consider, but you don't need to pay a credit repair clinic for this advice. Advise you to get a major credit card.

Credit repair clinics can give you a list of banks that offer secured credit cards -- credit cards used against a balance you deposit in a bank account. While this information is helpful in rebuilding credit, it's not worth paying for -- you can find this information yourself for little or nothing. The federal Credit Repair Organizations Act prohibits for-profit credit repair clinics from engaging in certain practices and making certain claims about their services.

Many states regulate credit repair clinics as well. Some dubious credit repair clinics have tried to get around these regulations by setting themselves up as nonprofits. Before using any organization that claims to be a nonprofit, carefully check the company's fees, claims about its services, and reputation. Do the same with your local consumer protection agency.