How to Find Good Credit Repair Companies
Looking for a list of good credit repair companies? Let me help by pointing out the difference between credit repair and credit counseling.
In your search for good credit repair companies you're going to come across both because credit counselors know how much money can be made in the credit repair industry.
They are two different beasts, though, and each one does something different.
I'll explain credit repair companies first.
Their goal is to help you clean your credit report with the intent to raise your credit score.
They find errors and argue items on your report as well as help you get your personal finances optimized for creditors.
If you're looking for good credit repair companies, those are the criteria.
How much can you raise my score and how quickly and will it last.
A credit counseling company is different.
Their goal is to help you get out of consumer debt and teach you how to stay out.
While this is a great idea for people who have problems handling credit and need to learn more, for anyone who wants to raise their credit score this isn't such a good idea.
One of the first things a credit counseling company will have you do is have you close any revolving credit accounts you have.
These include credit cards, gas cards, department store cards, HELOC's, etc.
They then negotiate your debt with your creditors and make the payments for you using the monthly fees you pay them.
This sounds like a great solution, but you're really telling you creditors that you can't handle your own finances and you need someone else to do it for you.
Also, closing you accounts lowers your available credit while your debt stays roughly the same.
You go from $4000 debt on $10000 credit to $3500 debt on $0 credit.
Potential creditors look at this and see that you're way past your available credit.
No way are they going to lend you money.
Another thing to think about is how a credit counseling company works.
This goes for good credit repair companies as well.
If you're required to pay a monthly fee, you may want to look somewhere else.
If the company makes money every month on you, it would make sense for them to keep you as a customer as long as possible.
For credit counseling, this means the lowest payment possible for the longest term.
For credit repair, this means that the longer they take to do their job, the more money they're making.
If credit repair is your goal, don't get involved with a credit counseling company.
You'll find your credit score will most likely go down.
If you're looking for good credit repair companies, check out my website.
In your search for good credit repair companies you're going to come across both because credit counselors know how much money can be made in the credit repair industry.
They are two different beasts, though, and each one does something different.
I'll explain credit repair companies first.
Their goal is to help you clean your credit report with the intent to raise your credit score.
They find errors and argue items on your report as well as help you get your personal finances optimized for creditors.
If you're looking for good credit repair companies, those are the criteria.
How much can you raise my score and how quickly and will it last.
A credit counseling company is different.
Their goal is to help you get out of consumer debt and teach you how to stay out.
While this is a great idea for people who have problems handling credit and need to learn more, for anyone who wants to raise their credit score this isn't such a good idea.
One of the first things a credit counseling company will have you do is have you close any revolving credit accounts you have.
These include credit cards, gas cards, department store cards, HELOC's, etc.
They then negotiate your debt with your creditors and make the payments for you using the monthly fees you pay them.
This sounds like a great solution, but you're really telling you creditors that you can't handle your own finances and you need someone else to do it for you.
Also, closing you accounts lowers your available credit while your debt stays roughly the same.
You go from $4000 debt on $10000 credit to $3500 debt on $0 credit.
Potential creditors look at this and see that you're way past your available credit.
No way are they going to lend you money.
Another thing to think about is how a credit counseling company works.
This goes for good credit repair companies as well.
If you're required to pay a monthly fee, you may want to look somewhere else.
If the company makes money every month on you, it would make sense for them to keep you as a customer as long as possible.
For credit counseling, this means the lowest payment possible for the longest term.
For credit repair, this means that the longer they take to do their job, the more money they're making.
If credit repair is your goal, don't get involved with a credit counseling company.
You'll find your credit score will most likely go down.
If you're looking for good credit repair companies, check out my website.
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