The truth is that anyone who has a damaged credit rating has usually had some financial trouble at some point in their life. But this does not mean that they need to live out the rest of their life with this hampered credit rating. Most damaged credit can be fixed over time.
Coastal Equities, a personal finance expert, has seen it all when it comes to credit and finances. Many times the only option is to hire a lawyer that specializes in credit repair. But does this option make the most sense for your situation?
Some Credit Repair is DIY
Be aware that many types of damaged credit issues can be fixed on your own. You can submit reports to all three bureaus, and over time you can get them to remove errors and sometimes even negative items. This will take some time and prowess on your part, though. And some people may not know how to accomplish this.
Be Prepared for Fees & Waiting Time with Lawyers
Lawyers make their money off fees, plain and simple. Imagine how many hours you’d spend fixing your credit. Now multiply this by the fees that you would have to pay a law firm. The good news is that there are firms that offer a flat rate, after assessing your needs. It will take time, money and patience, though. This may be a good option to pursue, as we’ll explain in the next point that follows.
Benefit versus Cost
OK – say you spend $5,000 to get your credit repaired by a lawyer. It’s actually money well spent. Now you could get, for example, a 5% car loan as opposed to an 18% one. The difference alone in that payment will add up to well over $5,000 over the course of the loan. So yes, in essence, credit repair law firms do pay for themselves over due time. It is just a matter of your needs in the here and now.