.
.
Written By: Terry Price
Credit Repair Kit or Credit Repair Company?
If you are like many Americans today, your credit report and score could stand some improvement. Ok - let's be honest - it could use a LOT of improvement. If you plan on applying for a car loan or a home mortgage anytime soon, now is the time to start working on improving your credit. In this article, we will help you decide between working with a credit repair company or doing it yourself using a credit repair kit.
We have all seen the commercials for credit repair companies. They offer to fix your credit for a low monthly fee. How much should you expect to pay? There is often an upfront charge of $50 to $100, followed by a monthly fee of $40 or $50. That sounds reasonable, until you think it through. Since you are paying them every month, they have no incentive to fix your credit fast. In fact, the longer it takes them, the more of your money goes into their pockets.
How much time will a credit repair company spend working on your case? It can't be much if they are only charging $40 a month. How much work would you do for $40? Sure they send out letters to your lenders and the credit reporting bureaus, but they are "boilerplate" letters. That means they use the same letters for every client, even when they know a customized letter would get better results.
The credit repair companies often claim that they will negotiate with your creditors to get your interest rates lowered. This is true, but what they don't tell you is that you can get on the phone and get the same results yourself, for FREE!
I think the Federal Trade Commission says it best: "Everything a credit repair clinic can do for you legally, you can do for yourself..." But where to start? Fortunately, several publishers offer a credit repair kit that guides you through the process. The best kits provide a variety of resources you can use to remove inaccurate, negative information from your credit report, negotiate lower rates with your lenders, and raise your credit score fast.
If there is a manual provided in the credit repair kit, make sure it is updated frequently. The rules and regulations for personal credit change fast - nothing worse then using outdated techniques when fixing your credit. Printed manuals will most likely be easier for you to use than a mishmash of linked web pages. If you are going to be paying for a manual, it should be one you can hold in your hands, highlight the important information, and turn down the pages of the best tips.
A credit repair kit should provide other resources to help you, such as a home study course, and even audio CDs you can listen to while commuting to work. Some of the better publishers of credit repair manuals also provide access to an online forum where you can ask questions and receive advice from experts and other forum members.
Finally, whatever method you invest in to fix your credit, you should be able to get your money back if you are not satisfied.
.
