Repairing Your Credit Score: To Pay or Not to Pay
Wednesday, December 24th, 2008 There are tons of advertisements on television, online, and in print that showcase companies ready, willing, and able to 
repair your credit score in no time flat. These companies will actually guarantee they can make your credit so good you will have no problem getting a loan, a mortgage, great rates for your car insurance, and even credit cards.
However, “instant fixes” do not exist. In order to get your credit report in order you need to understand this as well as a few other things.
Cleaning the Credit Report
First, the Fair Credit Reporting Act does not allow anyone to remove information from a credit report but does permit consumers to request an investigation of disputed information. Anything that shows up on your credit report that is incomplete or inaccurate can be investigated at no charge by the issuing credit bureau as long as you put it in writing. The agency will then perform an investigation and you will get the results of their findings within a 30-day period. You will receive a copy of the results of the investigation and any information that is not accurate will require the agency to report the information to the other credit agencies. If the information is deemed to be incorrect, the corrections will be changed on your credit report. Additionally, anyone who requested your credit report within the previous six months will also receive the corrected information.
The D-I-Y System
All of this can be done essentially by the consumer, provided they make the effort and follow through with reporting the disputes and saving all information relevant to the dispute. You might be surprised to learn that errors do appear quite often on credit reports and it is your responsibility to get the information corrected. If you have a bad credit rating and find all of your information to be correct, there is nothing but time that will heal the rating. Negative information will remain on your credit report for a period of seven years, except cases of bankruptcy which will remain on your credit report for ten years. There is no service that can remove accurate, negative information.
If you do feel you would benefit from using a company who advertises credit repair services, you should start with your own copy of your report to see where you stand. Take the time to sort through all of your credit card bills and other statements so you will be prepared to meet with the credit repair representative. Before you sign any contracts or paperwork with any company, you want to read through each page. You will be looking for specific information concerning your consumer rights, your responsibilities, the company’s responsibilities and the fees for services rendered. The contract should also clearly provide you with details of the services the company will provide for you, as well as how long they expect the process to take until results can be shown. If there are any guarantees made to you, make sure they are also clearly stated in the contract.
Look At the Alternatives
In addition to the for-profit companies offering counseling services for your credit situation, there are also plenty of options available where counselors are available for free consultations and non-profit organizations that perform credit assistance services for free. Just because you pay for services does not mean they are better than the non-profit companies.
What works for you, will not always work for everyone else. Each person’s financial situation and credit history is personal and different from others. You need to feel comfortable with your decisions to getting your credit back on track and if you are committed to dealing with and repairing your finances and credit reports, you can find the time and the patience to do it on your own. Be persistent in your efforts and you will find success.
