The pros and cons of hiring a credit repair agency

Credit has an impact on many aspects of your life. If you need to take out a loan, lenders always look at your credit score. Your credit can also influence your potential employer’s hiring decision or the owner’s approval decision. When you repair bad credit, you need to 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 using a credit repair agency.

The benefits of using a credit repair agency

1. Easy and fast. Credit repair services save you the time and hassle of trying to fix your bad credit on your own. These agencies have greater bargaining power and will work with your creditors to consolidate or reduce your unpaid debts. As such, they can help you repair your credit faster than you could on your own, saving you money in the long run. Also, there are other things you can do instead of spending your time learning all about credit reports, credit scores, and consumer law. Repairing your credit requires specialized knowledge, which can take a long time to acquire.
2. To live. If you try to repair your credit yourself, you may end up stuck. Most people don’t know how different things in their credit report affect their score. Plus, you might not know where to start for the fastest results. Professionals at credit repair agencies are well versed in the latest tips, shortcuts, and effective processes to get them done quickly. Credit repair agencies always know your credit because they have been doing this job for a long time. Credit repair agencies are experts at keeping records, sending the most efficient letters, and making sure credit bureaus stay within their legal limits.
3. Resources. If you have bad credit, you’ve probably tried talking to a credit bureau representative or collector over the phone. As such, you know how demanding and convincing these collectors can be. As such, you should consider having the proper ammunition to deal with these debt collection attorneys. With the many resources at their disposal, credit repair agencies can repair your credit effectively. Without the proper resources, it can be difficult for you to improve your credit score. These companies use their endless resources, growing knowledge, vast experience and skills to repair your credit. If you need help with your credit, check out a credit repair guide at observer.com.

Disadvantages of Hiring a Credit Repair Agency

1. Charges. If you are already struggling with your finances, hiring a credit repair agency will increase your already existing debt. Remember that 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 fees for these services.
2. Guarantee. Just because you hired a credit repair agency doesn’t mean that it will improve your credit score. Remember that not all problems with your credit report can be solved. Some reputable companies will offer a money back guarantee if they are unable to improve your credit problems.
3. Scams. Before hiring a credit repair agency, be sure to verify that you are working with a reputable agency. Check for the appropriate accreditation or certification. The possibility of getting ripped off exists. As such, you should familiarize yourself with your rights as a consumer under the Federal Trade Commission (FTC). The FTC prohibits any credit repair company from charging you before doing any work. Avoid companies that ask you to pay for their services in advance.
4. You can repair your credit for free. If you have the time, you can repair your credit with the same tools that credit repair agencies use. You can check your report annually and dispute any errors or issues you find with each of the three credit bureaus. Once you dispute an item with one office, they can legally report that change to the other two offices on your behalf.

Getting your credit in order is essential. While you can do it on your own, it can be time consuming and you might not know how to fix your credit. As such, it may be a good idea to use a credit repair agency. However, always be sure to weigh the pros and cons when making a wise decision.