Caveat emptor is Latin for “let the buyer beware”, a perfect caution to anyone considering hiring a credit repair company in the hopes of improving their credit score. When you hire a credit repair company, you should use the utmost caution and only do so after thorough research as the entire industry is known to be rife with scams. While a reputable credit repair company could eliminate negative factors from your credit report resulting in increases in your credit score, if you choose the wrong one, it could leave you with poor credit even after spending hundreds or even thousands of dollars.
How Do Credit Repair Companies Work?
Reputable credit repair companies work in primarily the same way; they obtain copies of all your credit reports from the three major credit bureaus (Experian, TransUnion, and Equifax), find any items on your reports that can be disputed, and dispute them while working with your creditors to remove the information from your credit report at as soon as possible. Credit repair companies work for a monthly subscription fee that usually costs between $60 and $100 per month.
How to Choose the Right Credit Repair Company
If you’ve decided to pursue hiring a credit repair company, there are a few rules to follow in order to avoid hiring a bad credit repair company. Firstly, never consider subscribing to a credit repair company that charges an upfront fee before doing any work or looking into your credit history. Additionally, by educating yourself on how and when a business or person can place items on your report and when you can remove them, will allow you to spot any red flags in the process and asked informed questions. Also, avoid credit repair companies that won’t agree to put their promises in writing or that guarantee the organization can remove bad credit. It’s simply not possible to erase timely and accurate negative information before the prescribed, legal time guidelines.
Repairing Your Credit After Bankruptcy
Although bankruptcy remains on your credit report for 7 to 10 years (depending on if you file for Chapter 7 or Chapter 13 bankruptcy), it is possible to increase your credit score after filing for bankruptcy. While filing bankruptcy will eliminate your legal obligation to pay certain types of debts, removing them from your credit report may be necessary for your credit score to improve. If you’ve filed bankruptcy recently, you can contact your Dayton bankruptcy lawyer to obtain recommendations on reputable credit repair companies.