Question : Are credit repair companies legit and do they really help?
I am trying to raise my credit score quickly. Right now I am at 593-around 650 depending on agency. So, by paying off the 5 credit cards that I currently have(some with amounts ranging from 1,500-2,500), should that raise my credit score a great deal? If not, will a credit repair company help or are they just a scam?
- asked by soonerfan0808
All Answers:
Answer #1
Credit repair companies are in the business ofmaking money and they will not be able to raiseyour FICO score. They really are for people whocan't handle their finances and need help making abudget and cutting up credit cards.
- answered by 2craz4u
Answer #2
Most are scams..look at the books written by ClarkHoward of go to his website...he knows more aboutwhat changes the score than anybody I know.
- answered by gvh
Answer #3
ok, to raise your credit score, will not happenovernight, but here are somethings to do1. neverbe late on a payment2. have differant kinds ofcredit( car loan, credit card, ans a storerevolving account), companies like to see at least3 diffwerant types of accounts, it shows you havediversity, and can handle your money.3. never havesomeone check your credit, unless you plan to buysomething big(like a house or car) or applying fora card, the more inquaries you have on there theylower your score, most places will go back 1year.4, check your credit report regularly, they 3major credit beuros, with let you check for freeonce a year, so what i do, is check my creditreport every 4 months rotating the companys. thereason you want to check it is to make sure allyour accounts are on there,, and make sure thatthere is nothing on there that is not supose tobe.debit consolidation is a scam, what they do,you can do on your own, just call up your creditcard companies, ask them if they can lower thereinterest for one year, so you can catch up and getyour total balance down, some will do it.with yourcredit score being like that, you should be ableto get another credit card, with a introductory 0%for the first year, then transfer all of yourother balances to that card. after the year is up,find anonther introductory card for 0%, dont usethe other cards, or you will end right back whereyou started.it takes time to get good credit, youneed to learn money managent it helps.Good Luck
- answered by GatorHunter®
Answer #4
If you pay them off they will reflect favorably onyour credit report. A credit repair company willconsolidate all the cards, and negotiate a fairrate and create ONE pymt a month rather than saythe "5" that you said you now make. To develop ahigher credit score, you have to 'show' that youcan obtain credit, and then pay it on time orearly. The lenders report by month any late pymtsor problems. They also report if an account wasclosed and by whom. The credit card company or thecustomer.
- answered by blondwithamind
Answer #5
No company can "repair" your credit. Some,however, can help you pay off your credit cards. From there, you may be in a better position to payyour obligations on time and raise yourscore.Forget what you see on TV. Contact some ofyour credit card companies and tell them you'relooking for a non-profit credit assistanceprogram. The credit card companies would preferyou pay your balance and fees (that's how theymake money) but they don't want you to declarebankruptcy, because then they've lost out. So, anumber of them fund non-profit organizations tohelp out.What will happen is this - thosecompanies can get your payments way down. Sometimes down to interest rates of 2% to 6%. Onthe other hand, you can't be using your cardsafter that, and I believe it will show that youwent this credit repair route, but it's stillbetter than bankruptcy.I don't know how the oneson TV work, maybe they take advantage of the samesystem but just tack on a few percentage pointsfor themselves. It doesn't matter, because youshould be able to get the same service at lowestcost from your credit card company.And don't worryabout telling them you're having trouble paying -they know that already. So ask them what orgsthey participate in and underwrite.Also know thatyou can't raise your score "quickly". The wholepoint of credit scores is to report how, ingeneral, you are credit-worthy.Good luck!
- answered by T J
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