NEW YORK (MainStreet) — In over your head with your credit? Thinking about going to a credit repair agency? Think again. Because a credit repair organization might not be able to do anything for you that you can’t do for yourself. Still, credit repair is absolutely right for some customers, especially those with complicated credit histories or more money than time. Read on to find out which of these categories that you fall into.
What They Can Do
Mike Sullivan, director of education for Take Charge America, notes that credit repair agencies often just do things for you that you can do for yourself. However, he’s also quick to note that this might include things that you don’t want to do for yourself. “There’s often letter-writing involved in credit repair," he said. "They can write these letters for you.”
While it doesn’t sound like much, it’s worth noting that credit laws can be very complex, varying from one state to another. This means that some degree of research is going to be involved. For those who are completely unfamiliar with state and federal credit laws or simply don’t have the time to research them, using a credit repair agency can be money well spent.
What’s more, Randy Padawer of LexingtonLaw points out that credit repair organizations have an advantage over even the most dedicated and knowledgable consumer: they deal with creditors every day.
“What does the average consumer know about third party debt collectors and how they differ from other collections?" he said. "Do they know what laws apply to unethical debt collectors? Death reporting? The Serviceperson’s Civil Relief Act?”