Credit Repair
vs. Debt Consolidation
People often think of them in the same terms, but they are very
different companies. A debt consolidation doesn’t do anything
other than streamline your debts – it “consolidates” them into
one lower monthly payment. This enables you to pay off your debt
faster, and to relieve the stress of trying to pay off all of
your debts at once. However, many times it is thought of as a
credit repair company, which it is not.
A credit repair company is simply someone you pay to help you
clean up your credit score. Credit reporting agencies spend a
lot of money holding onto the various credit information that is
stored in each and every file. This information determines what
kind of a risk you are for debt, and companies use it to
determine whether or not they will give you credit. If you are a
good risk you will get it, but if you have a low score and are a
bad risk most times you will not get the loan.
Credit repair is the process of trying to clean up your credit
and get rid of anything that is not true on your file. They work
with the reporting agencies and creditors to try and clean up
your file – they get rid of erroneous information and clean up
the stuff that should have already dropped off. They ensure that
when people look at your credit score that they are actually
looking at the truth and not what has been reported about you.
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