Is Credit Repair the Answer to my Credit Woes?
There are hundreds of reasons why you would fall into debt and subsequent credit problems. Maybe you had a bout of bad health that cut into your income. Perhaps you were suddenly laid off from your job. Or you might have just gone overboard with your spending, and now those bills are taking their toll on you. Whatever your reasons, you know that falling into debt is not nearly as difficult as trying to find a way out. Despite your best efforts to get back on track, collection agencies and creditors badger you incessantly. You can't stand the thought of being embarrassed by another rejection on a home mortgage, credit card, or other loan. Above all, you do not have the money to continue paying interest rates that are through the roof. If that sounds like you, getting credit repair information can help. For more help take a look at our FAQs page.
Credit Scores Matter
You might be questioning whether credit repair information can really improve your situation. The answer is yes, and the reason why is this: credit scores matter. Credit scores impact so many facets of life. Acquiring higher education, finding a decent apartment or home, and leasing or purchasing a vehicle can all be prevented by an undesirable credit score. In fact, potential employers might even research your credit history as a measure of your responsibility!
Aside from interfering with your life goals, a low credit score can also cost you considerable amounts of money in the long-run. If you have derogatory items on your credit report, your already unwieldy debts can be exacerbated by exorbitant interest rates and late fees or other penalties. You might be surprised to know that the average person with sub-prime credit in the U.S. pays, on average, almost 40% more each month on higher interest rates than someone with good credit. Credit repair information can help spruce up your credit report and improve your credit score, which can have a very real effect on your life.
Credit Repair Information: The Basics
In essence, credit repair works to improve your credit score by removing derogatory items. A late payment, charge-off, or bankruptcy would all qualify as derogatory items. These items deflate your credit score, which makes you less appealing as a borrower to lenders. With credit repair, professionals will work to identify these derogatory items on your credit report and advocate for you with your creditors to remove them. You don't have to deal with your creditors at all. In the end, the goal of credit repair is to save you money. By improving your credit score, you'll save a considerable amount of money that you otherwise would have wasted on ridiculous interest rates and countless fees.
How It Works
What makes credit repair work is the existence of legislation intended to protect the credit of consumers. The names of these laws are the:
- Fair Debt Collection Practices Act
- Health Insurance Portability and Accountability Act
- Fair Credit Reporting Act
- Fair and Accurate Credit Transaction Act
These laws are what allow credit repair specialists to require verification for the derogatory items on your credit report. Legally, your creditors are obligated to provide documentation corroborating the derogatory items within a certain amount of time, usually about a month. If they fail to produce this documentation, they must immediately remove the disputed item from your credit report.
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