Fix My Credit – Three Critical Facts You Need to Know

Having bad credit can be stressful, and, if you are in that situation, you may have asked yourself, What can I do to fix my credit? Well, you have two main options. You can have a go at fixing it yourself or you can hire a reputable and experienced credit service company to handle the matter for you. Whichever your choice, you need to know these three critical facts about fixing your credit:

The credit report dispute process is free

You are legally entitled to obtain free copies of your credit reports every 12 months from the three credit bureaus. After receiving them, you need to check them carefully for errors. It is common for credit reports to contain errors—the three different reports can even contain different sets of errors—and these can adversely affect your credit score. To avoid that, you will need to initiate a dispute process to correct the errors. You can do this for free by filing a dispute with the credit bureaus by mail or online.

The process can be long and complicated, and you may need to devote a considerable amount of time to it. If you have a really busy work schedule, it might make more sense to get a credit repair company to handle the matter for you. The company will obtain all relevant documents from you and will attempt to negotiate with your creditors as well as the credit bureaus to get the negative items removed from your credit report.

Furthermore, the company will make sure that you have an up-to-date and accurate credit history, and they will monitor your credit profile constantly so that you can remain aware of any changes that take place. However, the credit repair company’s services are not free and their price will depend on what you need them to do. 

Credit repair companies cannot charge you in advance

As per the Federal Trade Commission’s rules, credit repair companies cannot charge their customers in advance. So, if a credit repair company asks you to pay them before they have done any credit repair work, it is likely to be a scam. It will be smarter to walk away and find another company.

At the same time, it will be a good idea to get a clear idea about their prices before you sign a contract with any credit repair company. Be specific about the services you need and get it in writing how much they will charge for these. The company should also tell you upfront if there will be any additional costs or charges for their services. Once you have agreed on the price, you need to make sure that the contract includes all the pricing details. You don’t want to end up being billed for more than you expected after they have done the credit repair work.

Your credit score won’t improve overnight

While removing errors and other negative items can make a difference in your credit score, it might be unrealistic to expect it to improve immediately. The fact of the matter is that nobody can predict how quickly a credit score will improve. Credit bureaus do have to legally resolve disputes within 30 days, but there is no guarantee that that will alter your situation.

It may work in the short-term, but, in the long-term, there are several other factors that affect your credit scores, such as what your payment history is, what your credit age is, how you utilize your credit, and how prompt you are about paying your bills and loans. Each case will be unique and will deliver different results. Once you do manage to improve your credit score, though, it will be a good idea to stay vigilant about keeping it organically in that state to avoid future hassles.

Hopefully, now, you won’t be stumped by the question, “Can I fix my credit?” Yes, you can. But, ‘Should you?’ is another matter. The process can be long and complicated, and you may need to devote a considerable amount of time to it. If you have a really busy work schedule, it might make more sense to get a credit repair company to handle the matter for you.

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