Your financing options and access to capital will heavily depend on your credit score. Most lenders will get information from credit bureaus to check your credit background.
Chances are if you have a low credit score and a history of late payments or even default, you have limited loan options. This may be bad news. But on the other hand, the good news is that there are ways to fix your credit.
So this causes a lot of confusion and negative information. Can a credit repair company really help you improve a bad credit score and those items on your credit report?
The answer is yes, they can help. But you can also do it yourself.
Before delving into specific details, it is very important that you know how credit repair companies work and how they can help. They can do the following to help you repair your credit:
To avoid being scammed, it is important to be aware of what a credit repair company can do and cannot do. On April 1, 1997, the Credit Repair Organizations Act was enacted.
This is a federal law that regulates credit repair service companies. They are prohibited from taking payment from clients until they have finally completed the services that they offer.
They also need to have a written contract which states all the information, along with the terms and conditions. Under the said law, clients can withdraw from the contract 3 days after signing it.
Consumers are protected from scammers as these credit repair companies are forbidden to offer false claims regarding their services.
The company cannot also give you a waiver to sign stating that you are waiving your rights under this federal law.
If you seek professional help from a legitimate company, the cost should be reasonable. It ranges from $50 to $100 a month.
There are different companies to choose from and some may even give you a free consultation. With the free consultation, you get to see your credit report and then choose among the different packages they offer.
What can you expect from the packages? It varies. For instance, if you opt for a more expensive package, the company can provide assistance and services like Cease and Desist letters for collectors who are harassing you, ID theft protection, etc.
Over the years, there have been many consumers filing complaints to say that they are victims of scams. To avoid this, here are some things that you need to do and to keep in mind:
Fixing your credit score and improving your credit profile does not have to be that expensive. It is really not necessary for you to get a credit repair company.
But if you are not sure how things work especially since there may be legal matters that you have to attend to, the best way is to get a credit repair company to help you.