Has anyone worked with a credit repair service?

[pls5286]

My husband and I have decided we have outgrown our current home. The boys are just not happy sharing a room at almost 13 and almost 16. We found a place that we really like in our budget and applied for an FHA loan. Neither of us has great credit. Mine is due to my ex husband and medical. The loan officer said to work with the credit repair place they refer people to for 90 days and we would be in the range and get the loan. Anyone have any experience doing credit repair?

 

[katman2540]

subbing as I am interested in finding out about this as well.

 

[timmac]

I worked with one for a period of several months, a few years ago. Initially (for at least a few months if not a full year), they're not doing much that you can't do yourself. Just sending a note to each credit bureau denying existence of anything that looks bad, and disputing any late payments, and the like. Seeing what sticks.

For the monthly fee (I think it was like 79/month maybe?) I can't recommend it as being a worthwhile investment. At the time, I too, had been referred by a loan officer.

In hindsight, the fact that a "loan officer" was referring me to a "credit repair" service really should have been my first clue. From what I have gathered, there's really only one company that is well known for this service, so it may even be the same one.

In the strictest sense of the word, _nobody_ can get accurate information removed from your credit report. However, sometimes you get lucky in cases where the creditor doesn't repond to the verification request or the like. That's basically what a repair company banks on... that, and some pseudo-legal bullying tactics in the dispute process.

So, that's my .02.

 

[Cheshire Figment]

Go to www.creditboards.com which is similar to DisBoards but there the expertize relates to all sorts of credit problems.

 

[Leajess99]

I have not used a credit repair service but I worked hard to fix my own credit. You can add a personal statement to your credit report which may help explain some of the negatives if you can't get them removed. Just dispute stuff on the credit report and some will come off while others may stay.

They can only report stuff for so long and while some collection agencies may try to re-report it, you can get it removed. Save the money and try fixing it on your own.

 

[AnastasiaF]

You can do it yourself for free! Use the $79 a month to pay down any credit cards you have. A good way to increase a credit score is to open a credit card then make charges and pay them off monthly. I believe it takes a couple of months before they report your good credit history to the bureaus.

 

[NYCDiane]

There is no such thing as "credit repair". If you have legitimate derogatories on your credit report, they cannot be removed. Even if you pay them, they will remain on your C/R but just showing that you paid or settled it.

Also, they can't "magically" improve your credit score in 90 days or whatever line he fed you. That's bull. The only way to improve your credit score is:

1. Start paying down your debt and don't use your credit cards. Best bet is to get them all down to 1/3 (or less) of the total credit line.

2. Contact the creditors of the derogatory accounts and see what you can do to pay or settle. Whatever deal you make with them, GET IT IN WRITING!!

3. Don't apply for credit --- inquiries can/do make your score go down.


I would also find a new mortgage broker/loan officer. The one you're dealing with now sounds like a scam artist who isn't working in your best interest and will probably get you stuck with some kind of crazy loan that will eventually bite you in the back.

 

[minnie1928]

A good way to increase a credit score is to open a credit card then make charges and pay them off monthly. I believe it takes a couple of months before they report your good credit history to the bureaus.

I agree that saving the monthly fee is a good idea, but opening a new credit card right now would do more harm than good.

Follow the other's advice, go to creditboards.com. Dispute any incorrect items on your credit report, send goodwill letters on others that have minor negative charges. Goodwill letters do work, not every time, but I've seen them work on occasion.

Good luck, it'll take some work and possibly some time, but your score will increase as the negatives fall off/age and as new, positive history builds.

 

[NYCDiane]

Something I forgot to mention. If there are derogatories on your C/R and you don't agree with them or if they're outright wrong, you can dispute them with the credit bureaus (all three: Experian, Equifax, Trans Union). The credit bureaus will send the dispute to the company. If they don't respond or if they can't provide proof of the debt, the credit bureau will have to remove it from your profile.

 

[DCLbrideSept2009]

Go to www.creditboards.com which is similar to DisBoards but there the expertize relates to all sorts of credit problems.

+1... DO NOT throw money at repair companies. Its a waste of money. Go to the website and READ READ and READ. It may take some time but it will be worth it in the end. Trust me. Im in the middle of cleaning up my report and all it has cost me is postage.

 

[NYCDiane]

+1... DO NOT throw money at repair companies. Its a waste of money. Go to the website and READ READ and READ. It may take some time but it will be worth it in the end. Trust me. Im in the middle of cleaning up my report and all it has cost me is postage.

Absolutely!!!! It makes my blood boil when those commercials come on the TV or radio telling people they can "repair" their credit, etc.... All they want is your MONEY and to take advantage of people who are in a bad situation --- they only serve to make your situation worse!!!! Take the fees, etc that you would give to these clowns and use it to pay down/pay off your debt. They're doing NOTHING for you that you can't do yourself!!!!!!