If you’re struggling with debt, are looking to improve your credit rating or both, you may consider credit repair services. These services are designed to help people who are trying to boost their credit score and eliminate significant amounts of debt. However, it’s important to note that not all credit repair services are alike, and it’s a good idea to get credit repair reviews before you start working with an organization.
What Credit Repair Services Do
There are a variety of ways that credit repair services can provide assistance with debt relief. Almost all services will work with you to determine exactly what you owe and help you formulate a repayment plan based on your income. Organizations will also normally help you to create a spending plan that covers your regular expenses, such as rent, food and utilities, and they can help you look for ways to increase the money you can send to creditors.
Credit repair services may also help you figure out the best and fastest way to pay off your debts. For example, an organization could help you determine which of your debts have the highest interest rates. Tackling those debts first can reduce the total amount of money that you have to pay back.
Some credit repair services may also help you work with creditors to reduce your debt or make it easier to pay back what you owe. It is not uncommon for organizations to reach out to creditors on your behalf to attempt to negotiate lower interest rates or have late and overage fees waived. Some may even work with you and creditors to settle a debt for a one-time payment that is a fraction of what you owe.
Not all credit repair services offer the same types of assistance, so you’ll want to read credit repair reviews before you start working with an organization. If you expect assistance with working with creditors and a repair service only offers financial planning, you may end up wasting your time and having to start from scratch.
What To Look For In Credit Repair Reviews
When looking for a credit counseling service, it’s a good idea to look at the services they offer as well as what they charge. While there are a few organizations that offer these services for free or on a sliding scale for people who are struggling financially, most charge fees. While some organizations will charge a flat rate, others charge based on a percentage or depending on what services you take advantage of.
If you’re considering filing for bankruptcy, you’ll also want to look at reviews and determine if a credit repair agency is approved by the government to provide pre-bankruptcy credit counseling. Before someone is allowed to file for bankruptcy, they must go through credit counseling. If you decide that you want to file for bankruptcy, you won’t want to have to go through counseling again with a different agency.
Avoid Credit Repair Scams
In addition to finding a credit repair service that is right for you based on what you need and what you can pay, you will also want to check reviews to avoid scams or less than legitimate services. There are several indications that a repair service may not be on the level or may be more interested in taking money than help you repair your credit score.
One of the biggest indications that you should avoid a credit repair agency is when the agency makes promises it can’t possibly keep. Examples of this are statements that credit repair will be cheap or quick. Agencies may be able to help you reduce what you owe or pay off your debt faster than you could on your own, but if you owe a large amount of money, it won’t be quick or inexpensive to eliminate your debt.
Looking for reviews can also help you determine if a credit service has been able to help other people and if their methods are effective. Even if a credit repair service is on the level, they may not have the best processes for helping people. Reviews can help you avoid scams and look for services that will help you repair your credit with the least hassle and expense.