Is creditrepairaid.org a credit repair company?

No we are not a credit repair company, debt management service or credit counseling agency. We are a consumer education website that provides free information on these topics to assist in making smart decisions regarding your credit.

Are credit repair companies a scam?

As is true with nearly any industry, there are going to be companies who do not have your best interest in mind when it comes to the services they provide. This is the case with credit repair as well. Some of these agencies will over promise what they can do for you in an attempt to take your money. Before you sign up with a credit repair company, do your research and make sure that they are not making frivolous claims about raising your credit score 100+ points or removing items from your credit report which can not rightfully be disputed. There are good companies which can help. Take a look at our list of best credit repair companies for more help.

Is credit repair something I can do on my own?

There are steps you can take to repair your own credit if you have inaccuracies on your credit report which are resulting in a low credit score. By pulling a your current credit report you can go through the accounts listed and identify any errors. The next step would be to contact the companies who have reported the items in error and inform them that you are disputing those items and contact the credit bureaus directly to ask that those items be removed. You will need to document your efforts as proof for the credit bureaus, if required. You can read more about DIY credit repair here.

Will using a credit counseling service negatively affect my credit score?

Consumer credit counseling services negotiate directly with your creditors to set up a repayment plan which allows you to pay off a reasonable portion of the debt owed.  However this may lower your credit rating as the creditors will often report that your bills are not being paid in accordance to the credit terms that were originally set.   This is a trade off that the consumer must weigh.  Some times being out from under the debt is worth the reduction in credit score.

Can having bad credit affect my employment opportunities?

It’s becoming more frequent for prospective employers to not only perform background checks on job applicants, but also investigate applicants credit scores.  They use this information as an indication of the reliability and will often choose not to hire a person with a poor credit rating, even though their overall qualifications might be acceptable. Individuals who make payments late, default on loans and have poor credit histories may not be the quality of worker some employers are looking to hire.  It’s would be a good practice to make sure your credit report is clean of negative items prior to applying for employment.

How long does it take to see the results of credit repair?

On average it will take 45 days for a consumer to start seeing any measurable amount of results from the credit repair process. This will generally be the case when using a credit repair service or doing your own credit repair. Credit bureaus have 30 to 45 days in which to respond to credit disputes and inquiries. Consumers need to realize that it has taken time to build up a negative credit rating, and it takes time to fix it as well. Don’t be fooled into thinking that you can raise your credit score in a matter of days or weeks, because this is just not possible.

How can my credit report legally be repaired?

The credit bureaus must adhere to specific procedures that ensure the most accurate results before they are legally allowed to put any items on your credit reports. It many instances, they do not follow these guidelines. This can result in inaccurate items showing up on your credit history. Companies that report to the credit bureaus are also required to provide documentation for the accounts they report. Many companies simply do not have or keep this documentation. Reputable credit repair companies will investigate these items and determine which ones may have been placed in error. Once an item is identified as an error by the credit bureau, they are obligated to remove it. This is how credit repair is legally accomplished.

Should I really be concerned with what’s on my credit report?

Yes, you should be extremely concerned about the items showing on your credit report. The items listed on your personal credit history are what creditors use to determine your credit worthiness when applying for credit cards, mortgages and auto loans. Negative information on your report will affect your ability to borrow money and the interest rate at which you are approved.

What is a FICO score?

Your FICO score is a number given based on factors included in your credit history. Credit risk assessors predict the payment patterns of consumers and the FICO score is calculated by a mathematical formula that takes into consideration variables on your credit report including, total length of credit history, repayment history, outstanding credit balances, available credit and more. FICO scores will range from 300-850. The higher the number, the less you are considered to be a risk as a borrower. You will also qualify for better terms and interest rates with a high FICO score.

Does paying off my bills help to repair my credit?

Unfortunately paying your bills off will not fix your credit. The credit reporting system works in such a way that when you pay off an old debt that has already been reported as delinquent to the credit bureau, it is not immediately removed from your credit history. Even if you are current on your debt obligations, the fact that you were not paying as agreed at one point is still reflected on your credit report.

Can I use a debt management service if I currently have a good credit rating?

Any individual can enroll in a debt management plan. However if you are in good standing with your current creditors, you’re likely not going to see any benefit in the form of debt reduction or cash flow relief. Debt management services are generally designed for those with high amounts of unsecured debt who are trying to become debt free within the next 12 months.

What is the benefit of working with a credit counseling service?

Credit counselors are professionals who are experts in developing individual financial plans for those with credit issues. They can help you understand the exact nature of your finances and get you on a path to financial recovery.

Are there fees involved with credit counseling?

The answer to this varies depending on the service with whom you choose to work. Private credit counseling firms will generally charge a low fee for their services. Occasionally they will ask you for money up front, but this is not normally the case. There are also non-profit counseling services and religious based credit counseling services available for individuals with low income or inability to pay for these services.