Using Credit Repair Companies Are A Complete Waste Of Time
Using Credit Repair Companies Are A Complete Waste Of Time
You may well be wondering whether paying credit repair companies to fix your credit reports is in fact money well spent or whether it is a total waste of time and money, and the answer unfortunately is that it is really of no use because even though they may temporarily fix your credit, it won't last for more than a few months. Another very real concern with regard to credit repair companies is that they are not a good option because you can do the repair work on your own, and opting for credit repair companies could also leave you open to other risks such as identity theft, receiving emails that you never solicited for and other direct mailing issues can also arise. What you need to do is to find protection for you and not divulge your personal information to completer strangers or give up your rights to sort out your own personal financial matters.
Promises And Nothing More
Another important consideration you need to understand is that the credit repair companies only promise to get rid of debts for you and not improve on your credit reports, and you may also are asked to pay them monthly amounts from which they will supposedly pay off your creditors, though there is no guarantee that these payments will be affected and if so will be done on time.
You should also are wary of debt negotiators who may actually cause your credit rating to go from bad to worse rather than improve and who may even give you bum advice in the process. Also, such debt negotiators will ask you to pay up front and also charge for maintenance as well as monthly fees, though without any guarantee that your credit rating will improve. Such options can end up ruining your credit even more and worse, the money that you were supposed to have saved will actually amount to income according to the IRS, which means that if you owed X amount of money and settled the debt with Y amount, then X-Y amount will actually be treated as income by the IRS and taxed accordingly.
Most credit repair companies will be readily forthcoming with promises to remove your credit problems and will go the extent of writing to credit bureaus and informing them of wrong information in your credit reports, and while this process is ongoing, such credit repair companies will send you credit reports that are clean thus giving you the wrong impression that everything with your credit is in good order. However, once you pay such credit repair companies, you will find that all that they had ‘fixed' for you in your credit report, will soon return and leave you no better off than you were in the first place.
In the end, you may be better served trying out the services of mortgage brokers who will provide free advice and thus will prove to be a better option than any credit repair companies.