Best Credit Repair Services - Do They Really Work?

The best credit repair services won’t set unrealistic expectations, but can take much of the hassle out of fixing your credit score. None of these companies perform magic, but the best credit repair services certainly can help a great deal in improving your credit score.

Hundreds of companies offer credit repair services today, but according to the Federal Trade Commission, most of them are scams. If they claim that they can erase bad credit, or guarantee to raise your credit score, you should be very wary.

According to the FTC, “No one can legally remove accurate and timely negative information from a credit report.” Many of these companies will advise you to dispute all negative entries on your credit report. In most cases, this is illegal, just as following illegal advice is.

The best credit repair services don’t sell you your own credit reports. The federal Annual Credit Report laws make everyone is entitled to a free copy of their credit report, one from each of the three credit-reporting agencies (TransUnion, Experian, and Equifax), once each year, or in a twelve month period.

Most, if not all of the things these companies will do for you are things you can do yourself, but it may be very helpful for those who may not be aware of what their options are. Doing some of the work on your own might actually lower their fees, or of course you can simply do it all yourself instead.

Besides credit repair services, there are companies called “debt consolidators”. These debt consolidators won’t directly fix your credit, but instead they work with you to help bring your outstanding debt under control - a big step towards long-term credit-worthiness.

This is done by contacting your creditors on your behalf, and negotiating a ’settlement’ agreement, often a fraction of the actual outstanding debt. Then they combine these amounts. You in turn pay a single amount each month to the company, who then sends a portion to each creditor.

The best credit repair services can only help those who want to help themselves. They aren’t a “bailout” that erases bad debt like bankruptcy filing, however they can help set you on the road to improving your credit score, and in turn your financial future.