There are four ways to fix your credit, and here they are, from worst to best:
Worst: Credit Repair Services
It's tempting to simply pay a company to 'do the work for you,' but all credit repair services (that includes law firms) have two dirty little secrets they don't want you to know.
First, because they charge monthly for their service, they make more money--up to $2,000-- if they deliberately drag out the process, which is why they often take two or three years.
Second, you actually wind up doing MORE work than if you did it yourself. In addition to dozens of forms, the credit repair service requires YOU to personally choose which items to dispute, how to dispute them, and you have to constantly send them information that the credit bureaus send you.
Better: Follow Instructions From The Credit Bureaus.
This is like the wolf instructing the sheep. The credit bureaus are NOT your friends. This approach costs nothing, but you get what you pay for. Don't do it.
Better Still: Do-It-Yourself Programs (Typically A Printed Book,
An E-Book, Or An Audio Program).
There are hundreds of these programs available, but they're out of date. If you are very organized and have lots of free time available, the process these books describe will work fairly well. . . eventually.
Best: Credit Repair Software
There are several companies that offer credit repair software (not just an e-book). Although some are rip-offs (clue: unprofessional-looking websites), many credit repair software products combine the best of all worlds: simplicity, low price, and fast results.
Better quality credit software ranges from $97 to $1,000 or more, but there's no reason to spend the higher amounts. Look for satisfaction guarantees and a professional-looking website.
Credit Repair Law Firms Are Scams
There are hundreds of law firms out there that specialize in credit repair. I may get sued for writing this, but it's my opinion that certain credit repair law firms like are scams. Here's why:
Problem #1: Ridiculous Monthly Charges
One credit repair firm currently charges a $99 setup fee and anywhere from $39 to $79 every month that they work on your file. Since they charge monthly, the longer they take to repair your credit, the more money they make. In fact, some credit law firms tell you that it could take a year, two years, or even three years ($567 to $2,000), which is why they're getting very rich.
Why pay $2,000 or even $500, when there are excellent credit repair programs available for less than $100?
Problem #2: You Do Most of the Work
Here's a dirty little secret that credit law firms don't want you to know: you still have to do most of the work yourself--more work, in fact, than when you use credit repair software (more about that later).
In addition to all the paperwork you have to fill out and get notarized, you must request your own credit reports. Since the credit bureaus mail all documents to you, you will be constantly copying them, putting them into another envelope, and sending them to the law firm. You might have to do this five or six times every week.
The credit repair law firm will then scan your credit reports and post them on the web (security issues?) Then, believe it or not, even with all the money you're paying to the law firm, you still have to go to their website and choose for yourself which items you want to dispute and even how to challenge each negative credit item.
All the law firm does is print out form letters that they send to the credit bureaus. Doesn't it make you a little uncomfortable knowing that the longer they take, the more money they make?
Problem #3: Crappy Guarantee
All they have to do is remove one credit card inquiry and they consider that they've done their job, so there's no money back even if 99% of your credit report is still negative after three years and $2,000.
About the Author
Learn the insiders method how to repair your credit quickly. Don't make the same mistake I did...Use Credit Magic
