When you’re trying to fix your credit history and improve your credit score, and you want to use a credit repair service to help you, it can be tricky to pick out the good from the bad. Here’s a handy guide on what to look for when choosing credit repair services.
So you’ve got a copy of your credit report, and it makes no sense at all to you. The history is filled with acronyms and codes that make no sense at all, and they didn’t even have the decency to pack in a decoder ring to help you decipher it at all. So where do you turn for help with credit repair?
Stay away from dispute factories
When you’re first getting in touch with credit repair companies, ask how much emphasis they put on dispute letters sent to credit bureaus over negative accounts. A lot of credit repair companies use this as a quick-fix for people’s bad credit, sort of like throwing darts at a board; eventually, one of them’s bound to stick, right?
However, as I’m sure you’ve guessed, disputing every negative item in your credit history isn’t the best way to improve your credit and will more than likely get you in trouble if the items are really yours. Avoid companies that rely on disputes.
Getting to know your SOL
You’ll also want to learn your state’s statute of limitations, that is, how long the original creditor has to collect on a particular account. The Federal SOL is 7 years from the date of last activity on the account. Your state’s SOL varies wildly depending on the type of account in question (between oral/written agreements, promissory notes, and open-ended accounts), with some states lasting for only 2 years, while others follow you for closer to 15 years, making the road to credit repair seem that much longer depending on where you live.
So instead of allowing any of these companies to randomly dispute every negative account on your report, familiarize yourself with your state’s SOL and be prepared to work out payment plans with the creditors themselves.
Pardon my debt
One other thing to consider when looking for the right credit repair company is whether or not they incorporate debt settlement and negotiation services as part of their program. If they do, make sure you are ab
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