What Are The Benefits of a DIY Credit Repair Program?
Posted on February 24, 2011
You have two choices when it comes to credit repair. You can either hire a credit repair company. Or you can do-it-yourself. (Doing nothing is a third option, but, for your credit score’s sake, let’s assume you won’t take that route.) Many people choose to hire a credit repair company because they don’t know where to start, but there are many benefits of repairing your own credit.
You Avoid Scams
Even though there is a Federal law dictating what credit repair companies can and can’t do, there are still many companies who scam consumers. These unscrupulous companies mislead consumers about what can and can’t be done for their credit scores. They charge upfront fees, something they aren’t supposed to do. And some even make promises they never intend to keep.
When you choose to hire a credit repair company, you have to take the time to find a reputable company who will follow the law, not lie to you, and will charge you fairly. There are reputable companies out there, but when you do your own credit repair, you don’t have to take the time to find one.
You’ll Save Money
Credit repair companies charge hundreds and even thousands of dollars for their services. Even if you have the money to pay for the service, that doesn’t mean it’s a wise decision. The money you give to a credit repair service could be used to pay off or settle some of your past due bills, something you’d have to do anyway if you hire a reputable credit repair company. And of course, if you pick a scam company, you’re out of that money and your credit won’t be any better.
You’ll Learn the Fundamentals of Credit
By repairing your own credit, you’re also giving yourself a lesson on how credit repair works. Through your own research along the way, you’ll learn what makes a good credit score and what makes a bad credit score. You’ll develop the spending habits necessary to build and keep a great credit score. You may not necessarily get these skills if you hire a credit repair company. Without knowing exactly what you should and shouldn’t do to protect your credit score, you could mess up your credit again.
You’ll Have Control Over the Process
When a third-party is handling your credit repair, you won’t know what’s going on or if what the company is doing is really legal. Some credit repair companies use a tactic where they claim everything on your credit report has been the result of identity theft. If it works, your credit report is wiped clean. It may sound good, but it’s really not. A brand new credit report means you’ll have to start all over rebuilding your credit. If you think it’s tough getting a credit card when you have bad credit, getting a credit card when you have no credit is nearly impossible (unless you’re a college student.)
Anyone who has bad credit would be doing themselves a favor by repairing their own credit. Not just because of the money savings, but also because of the credit education you get from doing your own credit repair.
- What Should Be In a Credit Repair Contract?
- Common Questions About Credit Repair
- Consumers May Benefit from Consistent Credit Repair Services
- Laws to Know During Credit Repair and Beyond
- The Truth About Free Credit Reports and Credit Scores