Does Credit Repair Miami Provide
Credit repair companies work to clean up a consumer’s credit file by disputing inaccuracies or negative items with credit reporting agencies and creditors. They also write letters and documents to debt collectors on the consumer’s behalf, and may offer financial consultations or credit monitoring services. They may charge an initial fee (sometimes called a setup or first-work fee) or a monthly maintenance fee.
A good credit repair company should explain your consumer credit rights to you and answer any questions you have before you sign a contract, Padawer says. The company should be able to tell you whether it’s likely that your dispute will be successful based on laws such as the Fair Credit Reporting Act, which regulates how information is reported; the Fair Credit Billing Act, which regulates original creditors; and the Fair Debt Collection Practices Act, which oversees debt collectors. It’s important that a credit repair company scrubs questionable credit report items against these and other laws so it can prove “that the information in your file is accurate, fair and complete, and that it’s being reported to the bureaus by data furnishers who are required to do so,” she adds.
The best credit repair companies Miami will also do a deep dive into your personal finances and your credit history to get a better understanding of why you have bad credit, Padawer says. This is particularly true if you’ve gone through a major life event such as divorce, illness, military service or bankruptcy. These events often appear on your credit report and can cause your score to plummet, making it difficult for lenders to see your ability to repay a loan.
Does Credit Repair Miami Provide Assistance With Debt Settlement Or Negotiation?
After evaluating your personal financial situation, the credit repair agency will begin the process of cleaning up your credit by disputing inaccurate information with the credit bureaus and debt collectors. Inaccurate information on your credit file can include errors such as late payments, foreclosures or repossessions that don’t belong to you, tax liens or bankruptcies that were filed in error and duplicate accounts. The credit repair agency will send these errors to the credit bureaus and ask them to investigate within 30 days. They should then notify you of the results of the investigation.
In addition to disputing errors, a credit repair company can help you negotiate with your creditors and the credit bureaus for more favorable terms, such as lower interest rates or removal of negative items such as unpaid collections or medical bills from your report. This is often done with the assistance of a certified credit counselor who is an expert in consumer finance and debt management.
While credit repair and debt settlement are both methods for improving a bad credit rating, they have different goals. Debt settlement typically involves negotiating with your creditors to reduce what you owe, while credit repair focuses on fixing errors on your credit reports that are hurting your score. Neither service will completely remove bad marks from your credit, such as bankruptcy, late payments or collections.
