Is Consumer Credit Repair Helpful or Harmful?
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.
Other People Are Reading
-
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.
-
References
Resources
- Photo Credit Image by Flickr.com, courtesy of Casey Serin
