Credit Repair has become one of the largest conversations and investments people have/make since 2010. I’m sure you’ve seen the picture of the nice car, or the house on a YouTube video with someone talking about credit repair and what it could do for you. Credit is VERY important and should be something that we all work on. Having great credit can save you a lot of money, especially when it comes to paying interest! With that being said, you might be considering investing into your own credit repair if your credit is not in great shape. Here are 8 Things to keep in mind about credit repair.
1. You can repair your credit on your own
Surprise!!! Yes, it is true that you CAN repair your credit on your own. There are tutorials in various forms that provide the strategies and sometimes even the templates that you can use to help guide you. Now, things do get a little complicated when there are legal issues reported on your credit file, but if you don’t have any legal issues like bankruptcy, tax liens, etc., then you can try to repair your credit yourself. If your efforts don’t work, and you still have inaccurate information being reported on your credit file, then consider a credit repair specialist.
2. Negative accounts can only be removed by inaccuracy.
I know this one will cause few eye rolls, but I have to say this. Yes, it is true that some information can be removed from your credit report that may belong to you, but from my experience they are only removed if the information is reporting inaccurately. That account will only be removed if the credit specialist can find an inaccuracy in the reporting of the negative item. If they cannot find any inaccuracy, they may have a difficult time getting the negative account removed, especially if there is accurate documentation supporting the opening of the account.
3. Yes, you still have to pay for your student loans
This is a common thing that a lot of people think about credit repair. Some believe that they will no longer have to pay for things like student loans if they get it removed from their credit report. That is not true. Make sure that you ask your credit repair specialist what accounts you still need to pay for if they end up being removed from your credit file. I can tell you upfront, student loans will be one of those things you still have to pay for even after it has been removed from your credit report.
4. Credit repair is an investment, it is not an overnight success story. When you begin your credit repair journey it will take some time for you to see results. Sometimes that may be 30-60 days or even 1-4 years. If you watched a credit repair video and saw someone getting their accounts removed in 2 weeks, you may not have the same experience. Just be patient and let the process play out. Now, I do understand that some credit repair companies charge a monthly fee to work on repairing your credit and that can be a bit frustrating if you’re not seeing the results you anticipated; however, remember, like I said, credit repair is an investment and takes time.
5. There’s a possibility your credit won’t be “fully” repaired.
Obviously, this will not be a selling point for a credit repair company, but these are things to keep in mind if you are considering credit repair. If your credit file has bankruptcies, tax liens, repossessions, and other severely negative items, these can be very tedious to remove and the credit repair expert may not be able to remove all of your inaccurate information. In some cases, it’s because the creditor simply fixes their error and keeps reporting on the account, and in other cases it’s due to the creditor having proof the account truly belongs to you.
6. Sometimes disputed items that are removed from your credit report…Come back.
This does happen sometimes and when it does, people freak out and begin to panic. Deleted items sometimes come back on your credit report but… it’s a simple fix. Your credit repair specialist will have to dispute it again and show proof that the accounts were indeed removed by providing a copy of your removal letter(s).
7. 0ver 15 percent of those who got their credit repaired… wrecked their credit again and acquired some bad debt.
I was shocked when I saw this stat. This can happen in a few ways. Some people get their personal credit repaired and then use it to start various business ventures or apply for business credit and unfortunately get into deeper debt. Others continue the same credit borrowing habits that caused their initial negative credit accounts. I would advise two things. Please make sure that if you are new to starting a business and you’re not sure how to establish business credit properly, ask a professional first. Also, educate yourself on how to maintain good credit and practice good financial habits.
8. Your score may not increase as you expect with credit repair.
With credit repair some people may experience a large increase in their credit score by 75-200 points, but that will not be the same story for everyone. Some may only see an increase of 15-70 points. Every credit file is different, and some may have more accounts than others. Keep this in mind when you are venturing into credit repair.
Thanks, for reading my blog post “8 Things to keep in mind about Credit Repair.” As I stated earlier, credit is very important and having excellent credit is definitely an asset. Please make sure that you research the credit repair company you are interested in working with. Do you have anything to add to the list? If so, share it below! I look forward to hearing from you. If you haven’t already, please feel free to share and subscribe.