When you have poor credit, it can really stymie your attempts to build a solid financial footing. You can’t get access to the same financial services and deals, and it can be difficult to move on from there.
Credit repair is desirable if you have poor credit. There are a number of reputable companies that provide credit repair services, and that can be very convenient for you. However, these companies charge for credit repair. Do you really have to pay money for credit repair?
You Can Repair Your Own Credit — For Free
The short answer is this: No, you don’t have to pay someone for credit repair. You can actually repair your credit on your own, by doing things like paying down your debt, as well as paying on time, and fixing mistakes on your credit report.
In fact, the law makes it very clear that credit repair companies can’t do anything for you that you can’t do for yourself — for free. Any repair company that claims that it has tricks that will help your credit, and that you can’t do on your own, is probably doing something illegal. The truth is that you can repair your credit on your own, and you can do it without paying money. You just have to be willing to put in the time.
Convenience and Expert Help: Sometimes Worth the Money
Of course, just because you can do something on your own for free doesn’t mean that it is the best option for you. In some cases, it makes sense to choose a credit repair company to help you, even if you do end up paying for it. This is because a credit repair company often has the expertise and the time you lack to repair your credit.
It can take a lot of legwork to dispute credit report items. If you don’t have the time to do the research and the work, hiring a reputable credit repair company makes sense. Additionally, you might not even know where to begin. If you are concerned about whether or not you know what to do to start — and then what the next step will be — a credit repair company can help by creating a plan for you.
If using a credit repair company will help you jumpstart your efforts to improve your credit score, and if the company can help you with the legwork and the paperwork, it might be worth it to pay for credit repair help. After all, once your credit has improved, you will be eligible for better interest rates, and you can save money that way. Additionally, other costs, such as insurance premiums, can go down as a result of your improved credit situation.
Bottom Line
Carefully consider your situation before you decide to repair your credit on your own for free. For some people, this approach works well, and can save a lot of money. For others, though, it ends in disaster. Evaluate your situation, and determine whether or not it might be worth it to pay for credit repair; in some cases, it can be the smart choice.