A credit repair consultant can be a huge benefit to people who are having trouble keeping their credit score good and do not know how to fix it by themselves. Everybody needs a little help sometimes, and it is great to have someone to turn to when you cannot handle all the paperwork that there is, all alone.
Credit repair comes down to two things:
1. Examining the credit reports for errors, and disputing them with the credit bureau or agency.
2. Reducing your debts and improving your credit history.
The consultant can help with both of these. With the first one, you need to work with the consultant to find any mistakes that there may be in your credit report. If you find some (and a lot of people do) you have to write to the credit bureau that produced the report setting out the correction that is needed and enclosing copies.
These letters need to be very businesslike and it is important to send all of the right paperwork to the credit bureau, otherwise they will just keep asking for more information. Maybe you don't have all the documents that you need, and you could use some help knowing where to get them. Or maybe you don't write great letters, or don't have the time to do all of this. That's where a consultant can help.
A credit repair specialist will also usually be able to advise you on debt management and how to reduce your debts. This could include consolidation of your loan, but you will need to look closely at interest rates on the loans that would be available to you. Sometimes it is better to keep the debts that you have, even if it means more payments to keep track of.
It is also important to understand the effect that asking for another loan may have on your credit score right now, if it is already low. The consultant can explain all of this to you. They can also advise you on how to approach the companies that you owe money to, in order to have them agree to stop reporting on you.
If you are having trouble making the payments on the loans and credit cards that you have, you may need to see a debt counselor. To repair your credit you will need to be making all of your payments on time. You should also be aiming to reduce the balances on your credit cards. If your cards are maxed out all of the time or even if they are more than half way to the maximum, this is something that you can work on to improve your credit score.
Some people have a medium to low credit score simply because they never had much credit at all. This can seem strange. Why would people who were never in debt not have a great score? The answer is that the loan companies do not know what they are dealing with.
No credit history is better than a bad credit history, but it is not as good as somebody who uses credit and always pays it back. If you are in this position, the credit repair consultant will tell you how you can easily build up a great credit history without ever getting into debt.