The guy next door has a secret. It’s kind of embarrassing, at least to him, but he’d be surprised at how many other people have the same secret. The secret is that his credit is pretty bad, so he’s considering hiring a consumer credit repair service. The following will delve into how these businesses work and if they’re worth the fees they charge.

Pittsfield, MA -- (SBWire) -- 02/01/2013 --The goal of most consumer credit repair services is to help their clients get to a better credit score by eliminating their debt. While that’s an admirable goal to have, it’s one that the average individual can accomplish without hiring such a service. A “regular Joe” can repair his own poor credit rating, starting by obtaining a copy of his credit reports from all three major reporting bureaus, Equifax, TransUnion, and Experian, all of which offer one free report per person per year. Once the credit reports are in his hand, “Joe” must go over them ever so carefully, looking for mistakes or inconsistencies. If he finds any, he’ll want to write letters of dispute to the original creditor that accepted the fraudulent charge and to the Big Three Bureaus. He should itemize each disputed item and explain why he disputes it. After receipt of the letters, the reporting bureaus have 60 days to reach a finding. Up to 20% of negative items are removed from a credit report through this process.

Benefits of consumer credit repair services with credit-yogi.com

“Regular Joe” doesn’t necessarily need a consumer credit repair service. He can contact his creditors directly and ask to make a mutually satisfactory repayment agreement with them. Perhaps they could reduce the interest rates or allow a longer repayment time; anything they can do will help. He can make out a reasonable budget that allows the funds to work on paying off his debt, and he can look into debt consolidation if he chooses to. However, if “Joe” wishes to hire one of these services because he feels more comfortable about repairing his credit with their help, so be it. These companies will contact his creditors, work out payment plans that “Joe” and the creditors can agree to, and they’ll help him go over his credit reports to find errors, too. They cannot guarantee to eradicate all negative items on a credit report. They cannot require up-front payment, and they cannot encourage a person to obtain a new Social Security number so they can create a new credit profile. Any credit repair service that tries any of those tactics is most likely a scam, so don’t deal with them.

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