Credit Repair Services to Fix Bad Credit With Credit Repair Companies

Becoming mired in credit card debt is a very helpless feeling. However, if you're in serious debt, the problem goes much deeper than owing a lot of money to your creditors. You must also consider the impact your debt is having on your credit score. If you think your credit is destroyed beyond repair, you can consider seeking the counsel of credit repair companies.

Importance of Credit

The damage you do to your credit while you're in debt can have long-lasting ramifications. Credit isn't just used these days to see what kind of interest rate you'd get on a loan or a credit card. Today, credit determines if you can buy a house, if you can get an apartment and even if you can get a job. Keeping on top of your credit is paramount to a successful future; if your credit has suffered in the past, you can try to rehabilitate your credit through credit repair.

Credit Repair

Credit repair is, in effect, an attempt to undo the damage you've done to your credit. While the Fair Credit Reporting Act states that all negative information must stay on your credit report for seven years, credit repair tries to find ways to get this information removed. This is usually done through appeal letters stating reasons why the information on your credit report is invalid. The removal of these negative marks helps you increase your credit score and thereby get better interest rates in the future.

Credit Repair Companies

Fixing your credit report is a daunting process filled with lots of review, paperwork and waiting. You may not want to do this yourself, or you may want someone with more expertise to be handling your files. Credit repair companies are willing to help you, but be careful when it's time to pick a company. If you decide to work with a credit repair company, be sure to keep an eye out for scams or anything that doesn't look or feel quite right, such as a request for up-front payment before services are provided.

Doing it Yourself

If you're wary of credit repair companies, you can always try to repair your own credit. In fact, since the major credit bureaus allow you to file disputes online, the process is now easier than ever. You can still mail letters with documentation if you'd like, but it's not necessary. The credit bureau has 30 days to review your request, and the item will either be removed from your report or verified as legitimate.

If you're having trouble getting results through conventional methods, you can try mailing a goodwill letter to your creditors. A goodwill letter asks the creditor to remove the negative information from your credit reports as a courtesy. There's no obligation for the creditor to comply with your request, but it's worth a shot.