Credit repair is one of the most popular services provided by credit repair companies. Credit repair is the process of raising a person’s credit score from its negative standing to a more respectable level. Credit repair can be done by a company or by an individual. The services of a company provide a more comprehensive how to fix your credit service but may be expensive, and the services of an individual are usually less comprehensive but are often less costly as well. These services provide an individual with a way to fix his/her bad credit history and raise his/her credit score to an acceptable level.
Credit repair is done for a number of reasons. Sometimes a person has accidentally ruined his/her credit report and does not know how to fix it, sometimes a person has been the victim of identity theft, and still other times the credit repair organization has done a poor job and the credit report is not accurate. By using a credit repair organization a person can get his/her credit reports corrected and raise his/her credit score to an acceptable level. By using a credit repair service a person can do much more than just raise his/her credit score, some companies will also help the person fix his/her bad credit history. Some credit repair companies will also work to eliminate collection accounts.
Some credit repair companies will offer a free initial assessment of your credit scores and reports. These assessments will cost the customer money. Once the assessment is given the customer can choose which credit repair services to use, and can either choose to make the changes themselves or to hire a credit repair company to make the changes. The credit repair company will then provide a written statement explaining to the customer what changes were made. Some credit repair companies provide this same assessment free of charge, however if they do give it for free the customer must request it, upon which time the company will charge a fee.
There are three major credit repair services that are available to consumers who wish to raise their scores. Those three services are Experian, Trans Union, and Equifax. Each of these firms have different methods of assessing negative items on a person’s report, however the three report companies share some important criteria. Most of the credit repair services will notify the consumer in writing about any negative item that has been noted on their reports.
The credit repair companies will then provide the consumer with a detailed explanation of what the negative item meant, the details of the action taken, and what the company plans to do to reverse this negative situation. Credit repair companies will usually offer some sort of payment plan to help those with the highest credit card balances pay off their debt. However most credit repair companies do not offer any sort of plan for paying off small debts. In addition most repair companies do not offer any sort of guarantee that they will be able to lower a person’s debt to credit ratio.
Credit repair services that do offer a service to help consumers manage their credit scores by lowering their monthly fees are generally more expensive than the one that does not offer such a service. However it is usually possible to find a company that offers a reasonable monthly fee that is reasonable in order to help those struggling to make monthly payments on high interest credit cards. One important thing to keep in mind when looking for a credit repair service is to make sure that they will actually reduce your debt to credit ratio. The better the percentage reduction, the faster you will see the improvement in your credit scores.