Consumer credit repair is the process by which you can actively repair your credit rather than hiring a third party to do it. If done correctly, consumer credit repair can be very effective in restoring damaged credit.
Insight
There is nothing that a credit repair company can do for you that you cannot do for yourself.
Features
Consumer credit repair involves disputing negative items on a credit report, such as collection accounts and charge-offs, in the hopes that those items will be subsequently removed, thus improving your credit score.
Benefits
By opting to repair your own credit, you not only save money but prevent yourself from falling victim to a credit repair scam.
Disadvantages
Consumer credit repair requires thorough knowledge of federal laws regarding collection disputes, credit reporting guidelines and potential legal consequences.
Time Frame
Credit repair is not a fast process. Most consumers should expect to see a change in their credit scores after three to six months.
Misconceptions
Not all negative entries on your credit report will have an adverse effect on your score. The FICO scoring formula does not take collection accounts of less than $100 into consideration when your credit score is calculated. Consumers should primarily focus their credit repair efforts on items that still negatively affect their scores.
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