In 2013, a study released by the FTC showed that 25% of American consumers had at least one error on their credit report. It is no surprise, then, that credit repair has become a thriving industry. The main objective of credit repair companies is to find and remove harmful items that are negatively impacting an individual’s credit score. Boosting your credit score (even by a few points) leads to better loan interest rates, and can make the difference between being approved and not being approved for a car or home loan.
If you are looking to improve your credit score, you may have considered utilizing the services of a credit repair company. Unsure of where to start? Here are several tips for beginning the process of increasing your credit score through a credit repair company.
Determine Your Budget
Most credit repair companies require two fees: an initial startup fee and an ongoing monthly fee. Depending on the company, both fees can vary greatly. The initial startup fee is usually minimal, but the monthly fee is where the expense is introduced. Monthly fees can soar as high as $120. Decide in advance what you are willing to spend to help reach your credit repair goals.
Establish Your Goals
Before jumping in and finding a credit repair company to work with, it is important to understand what you are trying to achieve. Are you looking to improve your credit score by 20, 30, 40, or more points? Do you intend on buying a house within the next year? If so, what credit score is required for the home loan? Consider everything you are looking to gain from a credit repair service. Taking a few moments to write down your goals will help you make the best choice when selecting a company to work with.
Choose a Credit Repair Company
This step can be the most daunting for many individuals. With no shortage of credit repair companies, how can you know you are choosing the correct one? Research is the top strategy when finding the company and level of service that will work best for you. To start, look at the latest reviews on top companies to determine which one fits your budget and goals. For example, looking at a review of The Credit People will help you quickly compare services with credit repair companies such as Lexington Law and MSI Credit Solutions.
Should You Hire a Credit Repair Company?
The choice to begin working with a credit repair company is a decision you should make based on your individual circumstances. If your credit score is suffering, and you are planning to apply for a loan at some point in the future, credit repair services are a fantastic option. When selecting a credit repair company, keep your budget and individual financial situation in mind. Also, be aware that these services are not designed to produce overnight results. Working with a quality credit repair company can help increase your credit score and improve your financial future.