Many consumers today are in way over their heads when it comes to debt, and many are searching for any solution they can find. Using credit restoration companies can mean taking charge of that debt and getting your credit rating and record back on track. It does typically cost a fee to use credit restoration companies so of course any consumer may wonder what they do for that fee and if it's worth what they charge. This is a fair question; you want to be sure you're getting your money's worth for any company you hire for any service. It's also good to consider the question of what credit restoration companies do so that you understand how they can help. There is a difference between these companies and loan consolidation companies and other such services. Also, if you understand how they help you, you better understand if this is the best choice for your financial considerations. One thing to remember about credit restoration companies is that they need to evaluate your financial situation overall before they can do anything for you.
This means they need to look at your credit rating and history and all your bills and paperwork. You do yourself no favors by holding back information from those credit restoration companies, no matter how embarrassing it may be. They are there to help with those bills and are used to seeing consumers who are months and months, if not years behind on their debts, so don't try to gloss over anything.
Those credit restoration companies will then evaluate the bills you have that are unsecured, that is, for which you have no collateral. They typically then negotiate with the lender for a reduced amount on that bill for a payoff, meaning they will get the entire amount upfront if they reduce it. In some cases credit restoration companies will also work as loan consolidators, meaning they will offer the debtor (the person that owes the money) a loan to cover this payoff amount, but in some cases you would need to find that money on your own.
Those credit restoration companies will then also study your credit report and history and do what is necessary to improve your score, however they can.
This may mean removing incorrect information or old information that is hurting your score. It may also mean ensuring that new information is added that will improve your score, such as when bills are paid off entirely or when those monthly payments are made on time. The work these credit restoration companies do in this regard is very difficult for someone to do on their own.
When shopping around for credit restoration companies, you can and should absolutely ask what they would do for you personally. They may have different approaches to different situations, as they should. This will mean knowing if those credit restoration companies are the right choice for your particular financial situation and for your particular credit problems.