Credit Repair 101: Is it worth it?

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( — June 10, 2020) — As we all know, a low credit score adds an enormous amount of financial stress to our everyday lives. From refinancing your mortgage to applying for a new credit card, and everything in between, a good credit score makes your financial life easier. If you are dealing with bad credit, then do not worry! There are options out there to help you successfully repair your credit and enjoy the financial life you deserve – one that is debt free.

How do I Repair my Credit?

Unfortunately, most Americans do not know about the credit repair industry. The credit repair industry has been around for years, and is governed by the Credit Repair Organization Act (CROA). As an individual with bad credit, you can partner with a reputable credit repair company who will review your credit report. After they thoroughly review your credit report, your credit repair company like iMax Credit will file disputes with the three credit bureaus challenging any negative items that appear on your report.

The best credit repair companies can help you with bankruptcies, late payments, charge-offs, foreclosures, repossessions, collections, and more. Above all, they will provide tailored credit advice and will create a custom game plan to help you increase your credit score. However, it is important to note that repairing your credit does not happen overnight. It is a long process that often takes months to do successfully, which is why we recommend working with a credit repair company that has experience. This will speed up your repair process and will allow you to focus on your full-time job and family, while the credit repair company handles the technical process of repairing your credit.

Tips for Choosing a Credit Repair Company

Before you commit to working a credit repair company, make sure to do your due diligence and research. Sadly, there are a lot of scams out there who are just trying to rip you off and steal your money. However, these scams are easy to identify and avoid. Here are two things to watch out for:

  1. Guaranteed Results: It is well known that in the Credit Repair industry a company cannot guarantee you results. If a company is guaranteeing your results, then they are most likely a fraud. We all have different credit problems, and some problems cannot be fixed, such as legitimate debt owed.  
  2. One – Time Fee:  The credit repair industry typically charges a monthly fee and operates under a ‘subscription’ based business model. So, if a company is making you pay just one-fee then they are most likely a scam.

While there are a handful of scams currently on the marketplace, there are also reputable credit repair companies that have been around for years. Companies like Lexington Law or Credit Saint are two popular credit repair companies that have helped thousands of Americans repair their credit. While these two services are a bit more expensive, they are legit and have a proven track record of success.

Benefits of Repairing Your Credit

Though results are never a guarantee, repairing your credit is a smart financial decision if you currently have bad credit. Even if you can only increase your credit score by 10 points, that will save you thousands of dollars. A good credit score will allow you to receive a loan at a competitive interest rate, enjoy a new credit card, or refinance your mortgage. If you are trying to live a financially free life, then repairing your credit is a great opportunity. It will put you on the right path towards living the financial life you deserve.