When Is A Credit Repair Lawyer Needed?
Does a fast search on Google for “Credit Repair Litigation,” and you’ll get a wide variety of exciting results. Lots of them will make outlandish claims regarding what can be done for your credit. But can we trust their assertions? Moreover, is it reasonable to put faith in businesses that make such assertions? So, let’s dive in and talk about the circumstances under which you might require a Credit Repair Attorney.
Credit Report Errors
Errors in your credit history are a frequent topic of discussion on websites dedicated to credit restoration services. The fact is, that is indeed the case. Many consumers’ credit reports indeed contain incorrect or misleading details. Over 20% of customers, according to FTC research, have a credit-harming inaccuracy on their file.
Making a mistake is not ideal. There’s a wide variety of causes for them to arise. Your details may be mistakenly recorded as belonging to someone else. You may have been the subject of identity theft before without even realizing it. Your credit file’s moving sections may also be to blame for instances of duplicate information or other mistakes. For instance, if your account is sent to collections, it could be passed around to many agencies, each of which would add its entry to your credit report.
You may have heard that you must engage a credit restoration attorney to help you rectify these errors. However, the reality is that every credit bureau has its procedure for documenting and correcting inaccuracies. All that has to be done is to gather the necessary paperwork, submit it, and then rigorously follow up.
The Burden Of Your Own Mistakes
What if you’ve made poor financial choices and as a result, your credit is terrible? Credit scoring algorithms have improved in recent years, to the point that they can accurately predict who will be a responsible borrower and who will not. Paying bills or accumulating credit card balances even a few days late will lead to serious consequences. You will need help from a Credit Repair Law Firm.
There isn’t much a Credit Repair Litigation can do. You will continue to see a decline in your credit rating as long as you make poor decisions. Reversing this trend requires you to take responsibility for your actions.
But What About Insolvency?
The services of a credit restoration lawyer may be recommended by those who claim they can expedite the deletion of bankruptcy from a consumer’s credit record. However, this is just not the case. Some businesses engage in shady practices, such as providing you with a fake Social Security number so you may get a loan in their name. (That is different from credit repair. That is a serious case of identity theft).
Cost-Effectiveness Analysis Of Do-It-Yourself Credit Repair
Although some credit repair lawyers may be dishonest, I am not implying that this is the case across the board. When you hire someone to raise your credit score, all you’re doing is trading money for time. Exorbitant prices for services that don’t require much of your time commitment. Let’s say you check your credit report and see an old, paid-off account that still shows up as open and overdue. As a result, you’re probably seeing a major drop in your credit score.
In the event you want to handle things on your own, you’ll need to keep track of when the bill was paid. Once you’ve done that, contact the credit reporting agency(ies) about the inaccurate account. Then, contact the listed creditor and see if you can work out a solution to have the mistake removed. You will wait until you have gathered all of your materials and submitted your application. In most cases, you should hear back from the credit bureau within 30 days.
You may want to see a lawyer if the credit agency rejects your documentation or dismisses your claim as frivolous. If you can show proof that you settled the account in question, however, this is highly unlikely to happen.
Contrarily, you could begin by consulting a Credit Repair Law Firm. To begin, you must look for a reliable one in your area. Afterward, you’ll have to provide an explanation and compile the relevant evidence. Then the lawyer will submit the paperwork on your behalf while you wait.
Overall, hiring a Credit Repair Attorney isn’t a time saver. For the meager service of submitting a standard letter to the credit agency and your creditor, you presumably paid them a significant price.