Choosing the Right Credit Restoration Company: Research Is Essential
Does your credit report contain black marks? Are you having difficulty finding a lender or credit card issuer? You may be a candidate for affordable credit restoration services. This may be a solution to repairing your credit, but it is important to conduct research and know the company with which you are dealing.
Understanding How Credit Restoration Works
Many strategies are available to pay off debt and increase a low credit score. However, not all these strategies are effective. In fact, some aren’t even safe or worth the investment in time and money. It is often difficult to tell the difference between legitimate strategies and those that are not. This can make it confusing for someone who is unfamiliar with the way credit restoration works.
Credit restoration is another name for credit repair. Some companies claim a restoration service will provide better service than a credit repair company. Any warnings you see about these types of companies apply equally whether they advertise credit repair or credit restoration services.
Choosing a Legitimate Credit Restoration Company
Are there legitimate credit restoration companies? There are definitely legitimate companies, but they are likely to be quite expensive. However, Credit Yogi has the best credit restoration services, and they provide legitimate services. Certainly, you can do the same thing by disputing inaccurate information, but it’s time-consuming. If you have the time and can handle the stress, it’s good; if not, we at Credit Yogi are here to help.
How to Identify a Legitimate Credit Repair Company
It can sometimes be difficult to identify a legitimate credit repair company. The following points include some of the things a good credit repair company should do:
- Make sure you understand your rights. A legitimate company will explain those rights before you sign a contract. They will also answer any questions you may have concerning your credit rights.
- Seek to understand the reasons you have for disputing items on your credit report. This helps them meet the Fair Credit Reporting Act standards: accuracy, fairness, and complete substantiation.
- Explain clearly and in detail what it can do for you. A legitimate credit repair company knows what it can legally do and should be willing to outline its services. You are entitled to know what you are paying for.
How to Recognize Scam Companies
Many advertisements from credit restoration companies claim they can increase your score by 100 points immediately. If you think this sounds too good to be true, rest assured it is. In fact, this tactic is illegal, and you should avoid any company that makes these kinds of promises. Red flags indicating a credit repair/restoration company is not a legitimate enterprise include:
- Demanding payment before they do any work.
- Advises you to dispute all negative items on your credit report even those that are accurate.
- Tells you to provide inaccurate information on credit card or loan applications.
- Fails to provide a verbal or written explanation of your rights when explaining the services they can provide.
- Makes promises that seem too good to be true, e.g. a substantial increase in your credit score overnight.
Why You Shouldn’t Dispute Accurate Information
Probably the most important point in the list above pertains to disputing accurate information. It is not advisable to dispute accurate information because any “fix” is temporary. After it is proven accurate, the information will reappear. It is not financially feasible to dispute accurate information—this will not result in long-lasting positive results.
Another thing to remember is when something sounds “too good to be true,” it probably is. This tactic can appear as “deceptive acts and practices.” Making promises they are unable to keep borders on breaking the law, even if they advertise themselves as having the best credit restoration services.
How Long Does It Take to Repair Credit?
While it would be nice to think there is a quick way to repair your credit, the reality is no “quick fix” exists How long it takes to rebuild your credit depends on the seriousness of the negative issues. In some cases, it may only take a few months, but it could also take several years. Even though negative information usually remains on your credit for up to seven years (ten years for a Chapter 7 bankruptcy), the negative information has less impact the older it is. On the other hand, serious delinquencies such as collection accounts or charge-offs are much more difficult to recover from than occasional missed payments.
How Much Does Credit Repair Cost?
While you can do the same thing a credit restoration company does , you may not have the time or patience to follow through the credit restoration process. If you choose to hire a company to restore your credit, you can pay between $19-$129 monthly. This is just an average—you could pay more if you don’t conduct research and choose a legitimate company.
Is Credit Repair Worth the Cost?
Before deciding whether paying a credit repair company is worth the cost, you want to weigh the overall cost. This includes time, how complex your case is, and the actual credit repair cost of services. If you have already discovered minimal inaccurate items on your credit report, it might be possible to dispute those items on your own. However, if there are substantial errors, it may be better to invest the services of a credit repair company. Consumers do not always know exactly what credit bureaus require to open an investigation. Credit repair service companies are fully aware of the red tape involved and how to work with it.
Do Credit Repair Companies Really Work?
While credit repair companies can dispute inaccurate information on your credit report and ensure it is removed, consumers can do the same thing. However, the dispute process requires time and effort, something many people don’t have in abundance. According to Dr. Randy Palawer of Credit.com, “Sometimes it is easier to turn it over to a company who deals with these kinds of things daily. They know exactly what is required to dispute inaccurate information and how to ensure it is accomplished in a timely manner.”
Take Time to Conduct Proper Research
Taking time to research and locate the best credit restoration services takes time, but it can save money in the end. You don’t want a company that demands you pay before they do any work or that insists you dispute accurate information. Neither of these actions will help you raise your credit score for the long term. Choose Credit Yogi for the best credit restoration services. This will put you on your way to an improved credit score and report rather than one that will only last for a short time.
If you would like a free consultation from a non-profit credit counseling agency, Credit Yogi can help you. You’ll be happy you did. Our database includes over 160,000 professionals operating in every zip code in the United States. It’s 100% FREE and you never have to hire anyone. Ever.