Is Credit Repair Worth The Cost?

A few questions we get from potential clients is why should I hire you to fix my credit? Most people say, I can just do it on my own and save the money. Another one is, if I am not trying to buy a house or car, why should I care about my credit.

Below are a few topics to think about if cost of credit repair is a concern:

  1. Does it fit my budget?
  2. Should I just use the money to pay off collections?
  3. How do I decide which company to go with, they all vary in cost?
  4. If I am not buying a house or car why should I care about my credit?
  5. Can't I just do it on my own?

Does it fit my budget?

The last thing you need is to get further behind on bills trying to fix your credit. One question we always ask a potential client is, “Are you current on your monthly bills”. We do this because it will not benefit the potential client if they continue to have late payments on their credit profile. If you are tired of bad credit you will find a way to cut expenses to fit a credit program into your budget. It just has to be a priority, if you are not 100% ready to make the necessary changes needed to fix your credit, don’t waste your money.

Should I just use the money to pay off collections?

A lot of people think I will just negotiate the Collections on my report and everything will be ok! This is not true. Paying off a Collection does not boost your credit scores. The way the system or credit calculation views a collection has nothing to do with the balance, but the simple fact that it is a collection. Paying off a collection will help lower your Debt-To-Income Ratio, which may help in getting a home loan but has nothing to do with your actual credit score.

You can always ask for a pay for delete, but most collection companies do not offer that anymore. By calling them you now have now verified the debt and the timeline can restart and be stuck on your report for seven more years. If you decide to settle, no collection company will delete it and it will state “Settled For Lesser Amount” on your credit report. This does not help your credit score, just your DTI.

The best approach is trying to get it deleted from your credit report first before looking at other avenues. Deleting it will lift your scores and lower your risk factors.

How do I decide which company to go with, they all vary in cost?

So you have made the decision to hire a Credit Repair Company. Now the tough decision, who should I go with. Some think, well this company charges $750 so they have to be better or the exact opposite, they are way too cheap. Credit Repair should never cost you thousands of dollars. The main concern should be if they are knowledgeable, so ask questions. Be leery of companies that guarantees results or states something too good to be true.

Credit Repair and Rebuilding Credit is a process and takes 4-12 months depending on what is impacting your credit scores. Make sure they show you terms of service and have a cancellation policy. Communication is key, if you do not hear from the company you hire within the first 40 days of enrollment I would think about looking for a different path.

If I am not buying a house or car why should I care about my credit?

Having bad credit affects your overall financial stability more than you know. Did you know that every time you acquire car insurance or any other insurance products that your rates will be higher due to poor credit. You also have to put up deposits for things like electricity and natural gas services. Another financial impact is much higher interest rates on the loans you can get.

Over time you will spend thousands of dollars more for all the little things that are needed for living in our society. In the long run this impacts your overall financial security and savings. Look at the big picture and make the decision that credit must be a priority and whether you hire a company or fix your credit on your own, just do it.

Can I fix my credit on my own?

We get this question a lot, can I fix my credit on my own? The simple answer is yes. There are a few things you should consider before proceeding though. Do you have the knowledge and fortitude to follow through with the dispute process. This is where most do it yourselfers fail. They get started and after the first or second round they are stuck. Credit Restoration and Credit Rebuilding takes time and patients and you have to be diligent to meet legal timelines in order to get results.

If you have made your mind up and are jumping in on your own check out our DIY Credit Repair Kit. At least you will be armed with an outline and letters to set you on the right path. Remember poor credit has a huge impact on your financial security and future savings. Make it a priority!

Look at the big picture and make the decision that credit must be a priority and whether you hire a company or fix your credit on your own, just do it.