How Much Should You Really Spend On Repairing Bad Credit?

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Those who need to hire a credit repair service in Florida should expect to pay around $100 per month, although the actual price depends on the type of service.

For instance, a credit repair company in Miami, FL, may charge the same rate for a full-service repair. This includes all of the things that you could do on your own, but the only difference involves the help of a lawyer who would file credit record disputes on your behalf. You could try to repair your credit by yourself for less than $30, but hiring a service provider seems better if you are unsure where to begin the process.

What To Expect

An estimated 5% of Americans have credit report mistakes on their records, based on a Federal Trade Commission study. If a bank always rejects your application or you often see higher interest rates for a loan, it’s likely that your credit report has some inaccuracies. A credit repair company can check these reports, file a dispute and make sure that the information does not appear again.

The Fair Credit Reporting Act and the Fair Debt Collection Practices Act protect consumers from unfair practices of credit reporting. However, the existence of credit repair services indicates that the financial system isn’t always perfect. When you hire a professional to repair your credit, it includes taking out old information, multiple entries of the same loan, credit card accounts that are not yours and even misspelt names that cause the lender to assume that you are someone else.

Likewise, your credit history should contain positive marks that are verifiable and accurate. The same applies to debt instruments that aren’t timely or verifiable. When choosing a credit repair professional, take note that you have the right to cancel the service for free within three days.

Buying Better Credit

Credit score report with calculator and organizer book

You may have thought of buying better credit as a last resort to uplift your score, but this has negative consequences despite being a legal measure. Some people spend hundreds or thousands of dollars, in exchange for a company to find consumers with good credit and your name as an authorized user. Your name disappears on the accounts as soon as the company submits the information to credit bureaus.

The downside of these services involves a compromise on your personal and private information. Consumers who want to buy better credit need to provide their social security number, which will be given to the person who will add you as an authorized user.

It’s easy to predict how this can go south in an instant, since handing private information to strangers is almost like permitting them to steal your identity. Instead of paying a hefty sum for better credit, it makes more sense to use the money and pay off your existing debt.

Conclusion

Once you decide to spend on a credit repair service, you should thoroughly investigate the company and its claims. Remember that professionals can’t get rid of negative factors in your credit score, but correct inaccurate data that affects your records.