I Have a Bad Credit Score, What Can I Do?As is the case with everyone, you have three choices when dealing with bad credit: you can take the time to learn how to repair your credit yourself, you can pay someone to do it for you, or you can do nothing and wait years for your credit to get better on its own.
Since you are reading this, it is assumed you have already decided you want to do something about your credit so option three is really not an option. Congratulations, most people don't even get that far. Most people with a low credit score think their situation is hopeless.
So now your two options are to try to repair your credit on your own or to get help. There are definite pros and cons to each.
Working to repair your credit on your own is probably the best way to really learn the ins and outs of the credit system, how the credit bureaus work, and how your credit score is constructed. This is knowledge that, once acquired, can be of use for years to come. And on top of that, repairing your credit on your own is something you can do at very little cost. But repairing your credit on your own does have its drawbacks. Credit repair is rarely easy, especially when you have a long way to go. The credit bureaus make it seem like addressing negative information on your credit reports is as simple as submitting a form online, but make no mistake, those forms are for their benefit, not yours. For someone just getting started with credit repair, effectively repairing a bad credit score is going to involve a lot of learning and a lot of time sending letters to credit bureaus, creditors, collections agencies, etc. There is a reason why so many people who attempt to repair their credit end up turning to a credit repair company to finish the job.
Good credit repair companies have already put forth the time and energy involved in learning the credit repair process and will be able to get started right away. A good credit repair company will also be able to give you advice about other things you may be able to do to improve your credit score such as reorganizing credit accounts. Ultimately, many people see better and faster results when using a credit repair company.
This is not to say that there are no cons to using a credit repair company. Aside from the fact that a credit repair company is going to charge you a fee that will likely amount to many hundreds of dollars and that you will not be getting the first-hand knowledge of how your credit works, there are unfortunately certain risks when dealing with credit repair organizations. All too many credit repair companies are only in the business of taking people's money and are not as concerned about helping you out. This is why we have provided a lengthy article titled Credit Repair Scams - 11 Warning Signs To Look For that talks about things to watch out for when dealing with a credit repair company.
At the end of the day, it is a decision you will have to make on your own. A good suggestion would be to start by calling a few credit repair companies and get a better feel of your options. CreditRepairCompare.com provides links to some credit repair companies we recommend and you can find many others with a quick Google search. Then, if you think you would rather work to repair your credit on your own, spend some time on the various credit repair forums. Here you will be able to find many do-it-yourselfers who have fashioned themselves into experts in self credit repair.