The Pros And Cons Of Hiring A Credit Repair Agency

Credit impacts several aspects of your life. If you need to take out a loan, lenders always look at your credit score. Your credit may also influence your potential employer’s hiring decision or landlord’s approval decision. When fixing bad credit, you must decide whether you will do it yourself or hire a professional for the job. Credit repair agencies can improve your credit for you. However, these agencies will charge you for their services. As such, credit repair agencies may or may not work for you. Here are the pros and cons of hiring a credit repair agency.

The Pros of Hiring a Credit Repair Agency

  1. Easy and Quick. Credit repair services save you the time and hassle of trying to fix your bad credit by yourself. These agencies have more substantial negotiating power and will work with your creditors to consolidate or reduce your outstanding debts. As such, they can help you fix your credit more quickly than you could do on your own, thus saving you money in the long term. In addition, you can do other things instead of spending your time learning all about credit reporting, credit scores, and consumer law. Fixing your credit requires specialized knowledge, which can take a long time to acquire.
  2. Experience. If you try to fix your credit on your own, you may find yourself stuck. Most people do not know how the different items on their credit files affect their scores. Additionally, you may not know where to start to achieve the fastest results. Professionals at credit repair agencies are well conversant with the latest tricks, shortcuts, and effective processes to get them done quickly. Credit repair agencies always know their way around your credit because they have been doing this job for a long time. Credit repair agencies are experts in record keeping, sending the most effective letters, and ensuring that credit bureaus follow through within their legal limits. 
  3. Resources. If you have a bad credit, you have probably tried to talk to a rep from a credit bureau or a collector over the phone. As such, you know how demanding and persuading these collectors can be. As such, you should consider having the proper ammunition to deal with these collection lawyers. With the several resources at their disposal, credit repair agencies can fix your credit efficiently. Without the appropriate resources, it can be challenging for you to improve your credit score. These companies use their never-ending resources, growing knowledge, extensive experience, and skills to repair your credit. If you need help with your credit, check out a guide to credit repair on observer.com.

Cons of Hiring a Credit Repair Agency

  1. Charges. If you are already struggling with your finances, hiring a credit repair agency will add to your already existing debt. Remember that undergoing the dispute process is not free. The price of hiring a credit repair company varies depending on the agency and where you live. However, some people cannot afford the monthly charges of these services.
  2. Guarantee. Just because you hired a credit repair agency does not mean they will improve your credit score. Remember that not all issues on your credit report can be resolved. Some reputable companies will offer a money-back guarantee if they are unable to improve your credit problems.
  3. Scams. Before you hire any credit repair agency, ensure you verify that you are working with a reputable agency. Check for the proper accreditation or certification. The possibility of getting scammed exists. As such, you should familiarize yourself with your rights as a consumer under the Federal Trade Commission (FTC). The FTC forbids any credit repair company from charging you before doing any work. Avoid companies that ask you to pay their services upfront.
  4. You can Fix your Credit for Free. If you have the time, you can repair your credit with the same tools used by credit repair agencies. You can check your report annually and dispute any mistakes or issues you see with each of the three credit bureaus. Once you dispute an item with one bureau, they can legally report this change to the other two bureaus on your behalf.

Getting your credit in order is essential. While you can do it yourself, it can take up much of your time, and you may not know how to go about repairing your credit. As such, it may make sense to hire a credit repair agency. However, always ensure you weigh the pros and cons to make a wise decision.