Did you know that 11.1% of Americans have FICO scores below 550?
There are serious consequences to this “very poor” credit rating. Buying a home, buying a car, finding a loan, or even getting a job are all more difficult with a low credit rating.
Even if your score is above 550, it may still be low enough to be holding you back. And you wouldn’t be alone. That’s why more and more people are turning to credit repair services.
Not all of these businesses are trustworthy. One that claims they can “fix your credit overnight” is unlikely to follow through.
But the best credit repair services out there can make a real difference, changing your credit for the better. Here’s how:
Using Their Time and Expertise
Navigating credit repair can be tedious and intimidating. That’s why many people put it off, even when they understand its long-term benefits.
Credit repair services spend their time—not your time—navigating the world of credit. Furthermore, they have the legal knowledge and experience to navigate that world effectively.
Verifying or Challenging Debt
There are few more frustrating things than seeing inaccurate information on your credit report.
Credit repair companies can send debt validation letters on your behalf. These letters force debt collectors to provide proof that you owe a debt. If your credit report has inaccurate information, these letters are a powerful tool for removing it.
Sending Goodwill Letters
Goodwill letters are a different kind of missive. They address a minor but accurate line on your credit report, such as a late payment, and ask the creditor to remove it.
Doing credit repair on your own can be so stressful that many people forget a simple “please” can work. But if a minor incident in your credit history is causing big consequences, creditors will often take pity if you ask.
A bad credit situation can feel claustrophobic and inescapable. The consequences of debt can make getting out of debt even harder. And that creates more debt and more stress.
Many credit repair services will help you come to a workable settlement with your creditors. The settlement won’t erase debt overnight. But it can provide a roadmap for escaping debt and getting your life back.
Handling Cease and Desist Letters
Between daily phone calls and harassing letters, some debtors won’t give you a moment’s peace. Ironically, the stress from constant contact makes it harder to plan a way to pay the debt!
There are laws governing when and how your creditors contact you, but some creditors ignore them. A credit repair service can help you recognize when those laws are being broken. When appropriate, sending cease and desist letters can stop the harassment.
Providing Other Services
There’s a lot of credit repair services out there, which means there’s a huge number of other services on offer if you go to the right place.
Some credit repair services offer financial planning guidance. These programs help you handle your finances to improve your credit over time. Others offer ongoing credit monitoring.
As financial technology improves, credit repair companies are turning to futuristic tools such as artificial intelligence to help customers. This article describes Pinnacle Credit Repair, a company that does just that.
How to Learn More About Credit Repair Services
Credit repair is a complex issue, and it’s worth doing your research on credit repair services. Don’t just Google “credit repair company near me” and go with the first link. Take the time to see if they make legal and achievable repair claims.
Interested in learning more about credit repair? Read more in our archives.