BUSINESS

The Pros and Cons of DIY Credit Repair

The importance of having excellent credit is well known that no one has to explain it to you. However, most people go through several credit issues as they face different financial problems from losing jobs to growing bills. This is where credit repair comes into play. Credit repair is the process of improving your credit by disputing errors on your credit. The promise of credit repair is essential to anyone who wants to put their credit on a better path. However, the confusion comes when deciding whether to hire a credit repair professional or do it yourself. We will look at the pros and cons of DIY credit repair to help you make an informed decision.

Pros of Credit Repair

  1. Cheap. The primary reason many people opt to take on the credit repair process on their own is to save money. Doing the work yourself is cheaper than hiring an agency to do it for you.
  1. Hands-on. DIY credit repair is hands-on is a pro and a con. One reason why it is an advantage is that you do not have to call a third party to ask about the progress of the process. You will have peace of mind knowing what is going on and what you need to do next.
  1. Learning the Process. Most people seek the help of credit repair companies because they do not know the process. DIY credit repair will allow you to learn a lot. You will be exposed to the different aspects of the credit industry, laws governing credit reporting, and the process of credit repair. This knowledge can help you in the future should you need to solve some credit issues or help a family member or friend.  

Cons of DIY Credit Repair

  1. Lack of Experience. Unfamiliarity with the credit repair process is the primary reason why people hire a professional. However, having someone do the process for you is no different from hiring someone to renovate your kitchen since you can learn the process. Most people prefer hiring a professional to take away the stress from them. Another reason people go for credit repair companies is that they do not know how to maneuver challenges. When a collection agency tries to play hardball with you, you do not know how to resolve the situation in your favor. Credit repair companies take advantage of this lack of experience, making the process costly for you.
  1. Time Consuming. The credit repair process is time-consuming and requires significant attention. The process is very involved since you must maintain dispute letters, make several calls, take action against creditors, track down old information, and others. The DIY process means you will be responsible for every step.
  1. Less Likely to See the Process Through. The credit repair process takes at least six months. You have to be patient, and you should not lose hope. Doing it alone means you must be in the process in the long haul. However, it is human nature to get tired in the process. If you are an average person, you are less likely to take all the necessary steps to complete the process.

Repairing Your Credit Yourself

If you want to take control of your finances, consider DIY credit repair. Each credit bureau allows people to dispute errors on their credit for free. Ensure you check each one since each credit bureau reports separately, and you may find errors on one credit report and not on another. Addressing errors from debtors and reporting agencies is never enough to get your credit fixed. You must provide adequate documentation, proving that your information is accurate. You may also have inaccuracies such as misspelling and duplicate accounts. Also, you must understand your rights and limitations to deal with complex issues like identity theft and disputed late payments. If your process is fairly straightforward, you will save money and time. Consider getting help from a reputable credit repair agency if you find the process complex. Ensure you read this guide to credit repair on SFGate.com for an insight on the DIY credit repair process.

Credit repair is an excellent option if you want to change your score quickly. If you are successful, you will see changes in about 40 days instead of waiting for around ten years for negative items to naturally fall off your credit report. However, always remember that improvement is not guaranteed. You may have complex issues, and efforts to correct them may be unsuccessful.