A low credit score is a problem for millions of Americans, but not an insurmountable obstacle. Failing to comply with the T&C’s of credit agreements will result in a bad credit rating. Each lender reports whether a repayment was or wasn’t received each month and whether it was made on-time. Whilst a large percentage of the process is automated, human involvement can result in credit report errors. An individual or credit attorney has the right to correct these under the Fair Credit Reporting Act.
Advantages of a Credit Attorney
- Credit report errors. Inaccurate information can be corrected quickly and efficiently by a credit repair attorney. Many private individuals who attempt to resolve such matters fail to follow the correct procedures which can delay resolution.
- Professional standards. The credit repair service is provided by legal professionals. This means that they have a thorough understanding of all the laws and regulations.
- Avoid mistakes. Whilst it is possible to recover from a low credit score without legal help and guidance, the process can be a little overwhelming for some people. This could mean that they fail to comply with procedures or don’t provide satisfactory supporting information.
- Inquiry manager. The majority of credit attorney services offer a toll-free number and a dedicated support line to assist customers throughout the entire process.
- Cancellation of contract. Although there will be a set up fee and a monthly charge, there is no costly 12 month tie-in period. The customer is free to cancel at any time.
Disadvantages of a Credit Attorney
- Monthly cost. The service provided by a credit repair attorney is not free. It costs upwards of $29.99 per month to benefit from the assistance of a legal professional. Most of the legal services offered are tiered which means that the cost could be considerably higher.
- False promises. There are several services that promise the earth, yet deliver very little. Make sure that the provider is actually a law firm with a good reputation by checking with the Better Business Bureau (BBB). Don’t believe a credit repair service that promises a new credit report as this is unlawful. The attainment of credit under false pretences constitutes fraud.
- Value for money. Although up to 40% of reports contain erroneous data, not everyone stands to benefit from utilising the services of a credit repair attorney. Credit report errors can be corrected by the individual as any issues must be dealt with by a credit reference agency within 30 days.
- Bad credit rating. Those who have missed or made late payments will have a low credit score. Unless information is inaccurate or should no longer be there, the only way to rebuild credit is by making a series of punctual repayments now and in the future.
Using a Credit Repair Attorney Service
A credit attorney can help an individual to avoid many of the pitfalls associated with correcting credit report errors. They are also an invaluable source of advice and assistance in the event of difficulties. However, professional advice doesn’t come cheap. Remember that it is possible to recover from a low credit score and/or correct any errors personally without any additional expense.