The Best Credit Repair Services Aren't Magic - But They Can Help!

By Leona Allen

The best credit repair services won't set unrealistic expectations, but can take much of the hassle out of fixing your credit score. None of these companies perform magic, but the best credit repair services certainly can help a great deal in improving your credit score.

There are hundreds of credit repair services advertising today, but the Federal Trade Commission considers most of them to be scams. Companies that claim they can help you erase bad credit, or offer guarantees to raise your credit score, are probably scams.

According to the FTC, it is not possible to legally remove accurate and timely negative information from a credit report. Suggesting that you dispute all negative entries on your credit report, for instance, is illegal.

The best credit repair services don't sell you your own credit reports. The federal Annual Credit Report laws make everyone is entitled to a free copy of their credit report, one from each of the three credit-reporting agencies (TransUnion, Experian, and Equifax), once each year, or in a twelve month period.

You can do a lot of what these companies do yourself, however for those who aren't aware of all their options, it can be very helpful. You might be able to lower the fees a company charges by doing some of the "work" yourself, or you can opt to do everything yourself.

One thing to keep in mind is the difference between credit repair services and "debt consolidators". A debt consolidators will help to get your arms around your outstanding debt; they don't try to fix your credit. In many cases, this might be a preferable alternative, particularly as a first step in improving your credit standing.

Debt consolidators do this by contacting your creditors on your behalf. They will negotiate a 'settlement' agreement, usually just a fraction of the actual amount owed. The debt consolidator will combine these settlements into a single amount. They will give you an amount within your budget to send them each month, and in turn they send a portion to each creditor.

The best credit repair services can only help those who want to help themselves. They aren't a "bailout" that erases bad debt like bankruptcy filing, however they can help set you on the road to improving your credit score, and in turn your financial future. - 18193

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