Do Credit Repair Services Really Work,

Nowadays we see many advertisements of firms that claim that they are in the market to help you fix your bad debts. But have you ever wondered ‘Do credit repair services really work, ’ Well, in all probability, many of those companies would be there just to scam you. But there are some of the best credit repair service providers that provide great services at affordable cost.

Some experienced firms even claim that they would refund your money if your credit score is not increased. The only catch here is that unlike other services, the credit repair services does not work the same way for each of the person. The credit repair specialist does not come with a magical want to make it all right, instead they would access your current position and see the best way they can make your credit increase. If you look around you would find many credit repair services online, how to separate the genuine ones from the fakes, While there are no sure shot methods, you can look at the market credibility, longevity as well as money back guarantee.

Credit counselors can help you develop a Debt Management Plan (or DMP) and can negotiate to reduce your monthly payments. In many cases, you’ll be responsible for only one monthly payment to the credit counseling service, which will then disburse funds to all of the accounts you owe on. Your credit report may denote that accounts are paid through a Debt Management Plan and were not paid as originally agreed. Using a Debt Management Plan may not negatively impact your credit history when you continue to make payments on-time as agreed under the new terms.

Alternatively, you could consider consolidating your debt via a personal loan or balance transfer credit card. In some cases, debt consolidation loans can provide lower interest rates and reduced monthly payments, as long as you qualify and stick to the program terms. Don’t worry if you make payments and your credit report isn’t updated right away. Creditors only report to Experian and other credit reporting agencies on a periodic basis, usually monthly.

It can take up to 30 days or more for your account statuses to be updated, depending on when in the month your creditor or lender reports their updates. Lenders and others usually use your credit report along with additional finance factors to make decisions about the risks they face in lending to you. Having negative information on your credit report or a low credit score could suggest to lenders that you are less likely to pay back your debt as agreed. As a result, they may deny you a loan or charge you higher rates and fees.

If you have negative information on your credit report, it will remain there for 7-10 years. This helps lenders and others get a better picture of your credit history. However, while you may not be able to change information from the past, you can demonstrate good credit management moving forward by paying your bills on time and as agreed. As you build a positive credit history, over time, your credit scores will likely improve.

If your credit scores are bad, or not as strong as you’d like them to be, you may be researching ways to try to boost them. An internet search will likely turn up lots of advice about how to write credit repair letters to help you improve your credit. But do they really work, Credit repair letters are designed to take advantage of a provision under federal law, the Fair Credit Reporting Act (FCRA), that allows consumers to dispute items on their credit reports that they believe are inaccurate or incomplete.

The credit reporting agency that receives one of these letters generally must investigate and respond within 30 days. If the disputed information can’t be verified with the source that reported it to the credit bureau in the first place, it must be removed. Alternatively, information that is verified but not accurate or complete can be updated by a creditor to satisfy the FCRA investigation requirements. Keep your credit in good shape, so it's ready whenever you need it.

Nav is the ONLY source for both personal and business credit scores and tools to build better business credit. Get Started For Free. Consumers who find mistakes on their credit reports should, by all means, request an investigation. It’s fastest and easiest to file a dispute online, but some consumers prefer to mail a dispute letter.

It creates a paper trail and it may allow more flexibility to describe the problem if your dispute does not fall into the categories available with an online dispute. In addition, some consumer attorneys recommend that avenue to ensure consumers protect their right to sue if the information is not corrected.

But consumers are often also instructed by some websites and some credit repair organizations to dispute negative information even if it’s accurate. The hope is that the credit bureau will fail to respond in a timely manner and the information will have to be removed. This is a very popular tactic and there are companies that charge hundreds - or thousands - of dollars to help write and send credit repair letters.