Should You Hire A Credit Repair Agency Or Do It Yourself?

Every time someone pays their credit card or loan payment late

, the activity is recorded as a negative comment on their credit report and lowers their credit score. Consequently the lower your credit score the more you will pay on future loans by way of higher interest rates. If your credit rating gets low enough, you will find it next to impossible to be approved for credit altogether. It is for this reason that effective credit repair is a highly sought after activity and a booming professional business.

In the United States the main credit reporting agencies are: Equifax, TransUnion and Experion. Lenders report to these companies all the details of the credit you have been granted and they quality of your repayment. When new creditors are considering lending you money they will review these reports to determine how likely you are to pay your new loan on time. They also consider the amount of credit you already have outstanding.

Because the information contained within these credit reports is so heavily relied upon during the credit approval process, it is very important that it be kept accurate and complete. It is however an unfortunate reality that from time to time mistakes and inaccuracies do occur on your credit report. It is therefore very important that you make it a habit to review yours regularly to ensure that you do not become a victim of an unnecessary mistake.

If you have a low credit score due to problems on your credit report you will have to decide if you want to have the derogatory information removed by a credit repair service or if you would like to do the work yourself. It is not a difficult or complicated process to clean up your own credit, but there are some particularities to the activity. Additionally you have to consider the time required to become familiar with the ins and outs of the procedure that do exist.

One of the advantages of going with a professional credit repair company is that they have built their business around knowing all the ins and outs of dealing with credit bureaus and lenders. They are well familiar with the most efficient and effective methods of getting derogatory comments eradicated from credit reports. The downside is that they don't perform this service for free and you can expect to pay for their knowledge and experience.

When you are contemplating whether or not it is in your best interest to hire a credit repair company, you will need to assess how much free time you have available to devote to the task. It can be very time consuming, but if that is not a problem for your circumstance then you are probably OK to proceed on your own. If however you are a busy parent or employee then you may find the ability to pay a fee and hand the work off to someone else a worthwhile trade.

by: Paula Karde

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