Getting your credit repaired using a credit repair agency is common, because many people do not know how to properly handle credit repair. Many do not know what to do when disputing a false item on your credit report, so they resort to the sometimes helpful and always costly credit repair companies. But which is better: doing it yourself or getting help at a price?

Pros and Cons of Credit Repair Companies

Credit repair companies are beneficial mostly because of their convenience. Because many do not understand the process of disputing their credit report, they get help from people who know how. These people can definitely be of help, if you are willing to pay the money to have it done professionally rather than personally.

Repair companies can also benefit you because they do most of the disputing online. They are tech- and credit-savvy, both at the same time, allowing you the convenience of speed and professionalism. Sometimes, letting someone else handle it is just easier.

However, credit repair companies are sometimes not so good. First, you may be paying someone who is not a professional at all. Make sure that the credit repair company you choose, if this is the route you take, is legitimate and has good ratings by friends, family, and the Better Business Bureau.

You must also be aware that some companies don’t do you any good, but you still have to pay them anyway. Do not pay any credit repair company in advance for doing your disputing for you, because the dispute may not prove to be effective. Even if you do not pay in advance, you are obligated to pay them for their time and effort, which can be a waste, depending on the outcome of the dispute.

Pros and Cons of Doing It Yourself

If you choose not to seek the aid of a credit repair company, you may end up going about it all the wrong way. Sure, you always pose the risk of making mistakes and wasting time when disputing items on your credit report. It can be a difficult process to go through if you do not research how to go about it and what ways will be most effective in writing a dispute letter.

However, when doing it yourself, you can always seek guidance. There are several copies of formal dispute letters that you can copy and paste from the Internet that have been effective for many people. You can ask people you know who have done it before what you should and should not do. Getting free help is not against the rules.

Doing it yourself is obviously cheaper. You do not have to pay anyone to do your disputing for you if you can figure out how to do it yourself. Saving money is the biggest and most beneficilreason to choose independent disputing over getting help from repair companies.

Is It Always A Good Idea To Consolidate Student Loans?

Most of college students will graduate with a debt amount starting around $20,000. They usually have taken loans from different lenders with high fluctuating interest rates. When you need to have the many loans consolidated, these loans are bundled together by the student loan consolidation company and paid off.

The student then pays the new lender at a new interest rate, which is usually the average of all the interest rates previously taken out. The time period is also longer and students have different options of repayment. Thus, student loan consolidation saves money, makes life easier and you only have one loan to pay off.

Where Is A Creditable Student Loan Consolidation Company To Work With?

Check with school financial counselors, telephone books and one of the best places to start with is the Internet. In fact, this is my favorite place to start. Check out, student debt consolidation programs, (a great one) and others in the same area.

Questions you need to ask of them are:

• Do they explain all the charges and not ask for any upfront fees?

• Do they offer different types of payment options?

• Do they answer all of your questions and patiently hear you out?

• Do they have a competent student loan consolidation counselor to guide you?

• Do they let you take all the time you need without pressure before signing any papers?

• Do they offer any special bonus or special discounts?

• Does the association of independent consumer credit counseling agencies to consolidate your loan properly accredit them?

If all of these questions are yes, then you have discovered a good student debt consolidation company. However, don’t just take their word, be sure to check on other offers in the same market. And crosscheck with the “Better Business Bureau” for their track record.

If you feel uncomfortable with a particular company, walk out. There are many student loan consolidation companies offering ”no cost” student loan consolidations, but do not be lured by them. You could end up paying more. Also, make sure that the company you go with does not penalize you for early repayment of your loan.

Additional Information That Might Be Helpful Regarding Loan Consolidating.

Who is eligible for student loan consolidation? You must have more than $10,000 in outstanding student loans. And you are not required to be employed, to have any collateral nor need a co-signer.

Are there any fees when I consolidate? No, there are no fees. Is there a credit check required to consolidate? No, there is no credit check. And consolidation will improve your credit rating due to one lower payment to pay now.

Do I continue to make my loan payments while waiting for my consolidation application to be completed? YES!!! Until you are notified that your loans have meet all of the requirements (this can take anywhere from 30 – 90 days) keep making payments on all of your old loans.

One of the most asked questions is what about a repayment guideline. Depending on the total amount of your consolidation loan (and this is for a government loan) the following repayment periods are:

Loans Balance Repayment Period

• $10,000 -$19,999.99 15 years

• $20,000-$39,999.99 20 years

• $40,000-$59,999.99 25 years

• $60,000 and above 30 years

Hopefully some of these points will help you out while approaching student loan consolidation companies. At least some of your problems will be condensed when you are finished.