If you have been denied credit, a credit repair company may be able to help you. If you don't qualify for "extra-low interest rates" because of your credit score, a credit repair company may be able to help you. If you can't buy a home or purchase a car because you have bad credit, then a credit repair company may be the answer.
A credit repair company specializes in removing inaccurate, misleading, or questionable entries from your credit report. No one knows exactly how your individual credit score is calculated. It's a well-kept secret. Companies are vague about the criteria used to determine an individual's credit score, but one thing is certain: negative entries on one or all of your credit reports will result in a lower score. Professionals who specialize in repairing bad credit are aware of this. The credit bureaus are aware of it. The government is aware of it. But of these, only a credit repair company can help you fix the problem.
Consumer credit counseling services can help you plan a budget and pay off your lenders. They can even negotiate with credit card companies and sometimes stop late fees and lower interest rates. They can't fix bad credit. Once you've gotten a handle on your credit problems and gotten yourself out of the situation that led to the bad credit, it's time to contact a credit repair company.
Not all credit repair companies are the same. The fees vary. The services vary. And, unfortunately, the expertise varies as well. Some companies that advertise bad credit repair will only give you information. Often, that information is free if you know where to look. The Federal Trade Commission provides free information about consumer credit. They cannot help you fix bad credit; in fact, they will tell you that the only thing that can fix bad credit is time. This is not entirely true.
A reputable credit repair company with legal experts who specialize in credit issues can request that damaging information be removed from your credit report. If you only have a few entries that are causing you problems, then you may be able to accomplish this yourself. It really depends on how much time and patience you can devote to repairing bad credit.
Sometimes it's just a matter of knowing how to ask. The credit bureaus will ignore inquiries that are worded incorrectly. The credit bureaus are not government agencies, they receive hundreds of inquiries every day and the easiest way for them to work through the paperwork is to ignore inquiries that are not worded correctly. They have a tendency to pay more attention to inquiries that come from a law firm.