What do Credit Repair Companies Really Do?

For most of us fixing poor credit can be quite a challenge.  But it’s only a challenge if you’re not aware of all of your options.  Like most other things, if you want to be successful applying for credit in the future, you will first have to get educated about the laws of credit repair.  Read this article and you’ll find the steps you need to take to make it less challenging and easier for you to repair your credit.

Give Yourself Time

The first great tip for folks who are looking for credit repair help is that they should make sure to give themselves plenty of time.  No matter what you do, credit scores won’t go up overnight.  It takes some time for you to build a solid credit history of timely payments.  So make sure that you don’t get discouraged if you don’t see the improvements you want right away.

Pay Off the Lowest Balances First
Here’s a method that can make you feel good while helping you pay off your debts more quickly.  Start by paying off the credit card that has the lowest balance first.  You’ll feel a sense of accomplishment when you knock off this account.  Once the balance reaches zero, add the money that you had been using to pay off this account to the one with the next lowest balance.  Then wash, rinse and repeat.

Pay Your Bills on Time

The way that you pay your bills accounts for almost a third of your credit score, so make sure that you always pay your bills on time.  If you make late payments they stay on your credit report for seven years and that alone will adversely affect your credit score.  If you haven’t been paying all of your bills on time you should start doing so now.

Credit Repair Companies

Credit repair companies can help you to repair your credit.  However, while there are a lot of reputable credit repair companies that will help you to restore your credit there also have been quite a few scams popping up.  There are a number of things that you can do to protect yourself when choosing the right credit repair company for you.

First, you should let the Better Business Bureau be your guide.  Call the BBB before committing to hiring a credit repair company.  Luckily a lot of people have already filed complaints against the companies that charge fees for services that they didn’t render and you could get this valuable information by the end of the call.

Remember that if a company’s promises or their offers seem too good to be true they probably are.  If you recognize the unscrupulous tactics that disreputable credit repair companies use you can avoid hiring one. 

The Credit Repair Organizations Act prohibits credit repair companies from accepting any payments before they have rendered their services.

So if a company asks you to pay them money in advance you should scratch them off your list immediately.  That’s because it is not only underhanded, it’s downright criminal as well.

Instead, you should look for a company that informs you about your rights and tells you the steps you could take to improve your credit score for free.

As you read in the beginning of this article, figuring out how to fix your credit can be challenging.  But you can repair it relatively easily once you know what to do.  Apply the advice you’ve just read about and you’ll be on your way to raising your credit score and being able to secure the loans you want in the future.