With so many businesses pulling credit reports it’s becoming more important that Americans address any credit problems that they currently have. But is credit repair really the magical cure-all that many companies make it out to be? In order to answer that question you need to understand what credit repair is capable of doing for you.
Can Credit Repair Erase Negative Info?
Yes and no. Credit repair is meant to correct inaccurate or outdated information on your credit reports. Many consumers, even many credit repair services companies, try to use this process of challenging accounts for every derogatory listing. This is not what credit repair is supposed to be doing and will only create more problems.
If the negative accounts on your credit reports are wrong, then yes, credit repair can have them corrected and possibly removed. Don’t think that you can go run up thousands of dollars of credit card debt, not pay, and then have a credit repair company magically remove those accounts. It’s not going to happen. You’re going to need debt relief for those debts.
Does Credit Repair Boost My Credit Score?
Comprehensive programs should have no problem improving your score. However, removing negative items from your credit reports doesn’t usually increase your scores. What’s more beneficial is establishing new, positive lines of credit and using it responsibly. The credit repair process will often times include creating new credit lines to maximize your scores.
Can Credit Repair Be Done in 24 Hours?
Absolutely not. Credit repair is a process that generally speaking takes 3 to 6 months. Of course this depends on how bad your credit really is. But 24 hours is completely unreasonable. Most correspondences with creditors, collection agencies and the credit bureaus are still done via regular mail and has a turnaround time of about 45 days.
Is it Worth the Money?
If done properly, then yes, it is. Credit repair can get you approved for credit cards and loans, but it can also improve the interest rates on those loans & cards. You can end up saving thousands a year in interest payments just because your score was a few points higher. So while it is an investment, the money you save can far exceed the money you spent.
Where Would I Begin?
If you’ve never taken a look at your credit reports, then now’s the time. All three major credit reporting agencies – Equifax, Experian and TransUnion – offer a free credit report every year. It’s free at annualcreditreport.com. Take them up on this offer and see what your credit profile is saying about you. The sooner you start, the sooner you’ll reap the benefits of a high credit score.
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