As the Federal Trade Commission points out, you can repair your credit yourself. However, there are situations where it might be beneficial to leave credit repair to the professionals. Deciding whether credit repair services are for you should be based on the type of person you are, the extent of the errors in your credit report and your lifestyle.

When Credit Repair Services Are Beneficial

Companies that offer credit repair services are most advantageous for people who fall into any of the following categories:

Busy Lifestyle: If you know your credit reports contain errors or inaccuracies but you don’t have the time to contact all three of the credit reporting agencies and follow the procedures in the dispute resolution process, then a credit repair company is the best route to take since they do all the work for you in repairing your credit.

Not Very Well Organized: Fixing your credit yourself takes good organizational skills. If you know you’re not the best in documenting phone or written contact, organizing files for each dispute, or keeping good records, then credit repair services might be a better solution since account management is organized for you, often times online.

Prefer Professional Guidance: If you’re unsure about how to begin disputing credit report mistakes, credit repair services offer step-by-step programs that streamline the process. If you’re not comfortable with how to investigate or dispute negative items on your credit report, how to read a credit report, or what your rights are under consumer protection laws, you might feel more at ease using a credit repair company.

Identity Theft Victim: If you are or were a victim of identity theft, credit repair services have tools to address fraudulent accounts. These are accounts that have been opened in your name without your knowledge or consent. Credit repair services can assist identity theft victims with the steps necessary to stop fraudulent information from being reported on your credit report.

Issues Credit Repair Services Can Help You With
Credit repair services focus on questionable items that appear on your credit reports. They can have such items removed if it can be proven that the debt is not yours or the action taken is not justified. Among the credit report issues that credit repair services look into are:

  • • Improper credit card limits and balances;
  • • Late payment errors;
  • • Inquiries made on duplicate or closed accounts;
  • • One debt reported several times;
  • • Inaccurate student loans;
  • • Invalid judgments made against you;
  • • Invalid liens, charge-offs, bankruptcies, or foreclosures.

Deciding Your Credit Repair Route

When deciding whether to enroll in a credit repair service or do the credit repair yourself, be honest about how much time and effort you’re willing to put into the process if you do decide to do it yourself. The professional services offered by a credit repair company are designed to assist you with the process by doing much of the dispute process for you, including identifying incorrect information, sending out dispute letters, submitting supporting documentation, following up on responses and checking that the item in question has been adequately resolved.

At the very least, you can request your free credit report on your own and review it for inaccuracies. When deciding whether you need credit repair services, weigh the extent of the errors in your credit report with the extent of the commitment you’ll need to make doing the dispute work on your own. Also take into consideration your willingness to learn about credit report dispute procedures. If the process seems too time-consuming or overwhelming for you to do on your own, then credit repair services might be a right fit for you.