Welcome to the December edition of Financial Friday, Oklahoma Money Matters’ online personal finance question and answer forum. This month, we're answering a question about using credit repair services.
I was laid off last year and my credit suffered because of several missed payments and the increasing debt during that time. I've been seeing ads about credit repair companies. Can they actually help fix my credit, or is it a scam?
If you're trying to pay off debt and improve your credit score, working with a credit repair service for assistance may be tempting. These companies specialize in enhancing your credit standing by challenging outdated or inaccurate information on your credit reports and, often, negotiating with your creditors on your behalf. Credit repair services typically come at a cost however, and it usually takes several months to see much progress. Reputable credit repair services scrutinize your credit reports for inaccurate information and initiate disputes on your behalf.
Credit repair services can address various errors, including:While reputable credit repair companies offer legitimate services, the industry also has some bad apples. Therefore, it's essential to carefully vet any company you're considering. So, if you choose to hire one, it's necessary to investigate the companies you may want to work with. Consider these tips when deciding if a company is right for you:
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Whether you opt for self-guided credit repair or hire a company to assist you, it is wise to have a long-term plan for managing and maintaining your credit going forward. Visit the National Federation of Credit Counselors at https://www.nfcc.org/ to find a not-for-profit agency in your area.
For more resources to help you in your personal finance journey, check out our resources at OklahomaMoneyMatters.org.
As always, if you have money-saving tips you’d like to share, send us an email at OklahomaMoneyMatters@ocap.org or submit a personal finance question for a future edition of Financial Friday.
Thanks for participating in Financial Friday. It's never too late to take control of your financial future!
The OKMM Team
Financial Friday is a service of Oklahoma Money Matters, the financial literacy initiative of the Oklahoma College Assistance Program, a division of the Oklahoma State Regents for Higher Education.
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