The Learning Center

# - A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z

Credit Repair Services
 Aug 05, 2004

Credit repair services are designed to help fix, repair, or build ones credit score. This article will review the pros and cons of credit repair services, what they can do and what they can't, and what fees credit repair agencies charge to help repair your credit report.

When you have bad credit, it can be daunting to think about having to make the repairs on your own. This is where a credit repair service can help. Credit repair services are often composed of professionals who understand what is needed in order to maintain a favorable credit report. These professionals can help you create a plan to fix your credit score.

What credit repair services can help you with

It is important to have an idea of how credit repair services can help you. For the most part, credit repair services can only help you get inaccurate or outdated information removed for your credit report. This is important, though. If your credit report is showing duplicate accounts, or if someone else has opened an account in your name, it can drag down your credit score.

Outdated information can be hurtful as well. If you had payment problems eight years ago, but have been on time since then, the information showing your past responsibility issues can result in a lower credit score than you deserve.

Credit repair services help you learn methods to recover your credit score by outlining, step by step, what you need to do in order to have inaccurate or outdated information removed from your credit file. Some credit repair services, for a fee, will also do most of the legwork for you. Others will help you create a debt reduction plan that can help you improve your credit score by paying down debt.

What credit repair services can't do

It is important to realize that credit repair services cannot legally do anything for you that you can't do for yourself. Indeed, many of the services that you pay for when you turn to a credit repair agency are things that you can do yourself for free. However, for those who do not have the time, knowledge or patience to take care of their credit issues on their own, it can be worth it to pay someone else to take care of the problems.

Credit repair services can't have accurate and timely information removed. This means that you must be careful of agencies that promise that any negative information can be removed. This simply is not true. If the credit report shows correct information, credit repair services cannot have it removed.

You should also watch out for credit repair services that promise an immediate impact on your credit score. In these cases, there is often some short-term tactic that is used. Tactics such as adding you as an "authorized user" to someone with good credit may give your credit score a brief boost, but the spike will not be long lasting. Longer-lasting changes to your credit score take 30 to 90 days to take effect and show a difference.

Another thing to watch out for are credit repair services that recommend that you start a new credit file. This is usually illegal, since it involves you using an alias or some other measure. Be wary of credit repair services that claim that they can help you do something that you would not be able to do yourself in the course of normal improvements to your credit score.

Credit repair service fees

Most credit repair services charge fees. The fee may be a yearly fee (with a minimum membership term), a per-service fee or some other fee. Some credit repair services charge administrative fees or some other type of fee. It is important to carefully read what fees are charged, and what they are meant to cover. There are also services that sell products like credit monitoring and credit kits.

You should be careful when signing up with credit repair services. While they can be very helpful, it is important to avoid the less than reputable services that will not offer you the assistance you need to make long-term, lasting changes to your credit.

Related Article: Debt Management Services >>

* See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Here" button, you can review the credit card terms and conditions on issuers website.