5 Ways Credit Repair Companies Help Fix Your Credit Score

You can choose to dispute negative information on your credit report because it saves you money, but sometimes the process can be frustrating. Hiring credit repair services from a reputable company to act on your behalf can be a good idea. The companies have expertise and experience in credit repair matters and are aware of the necessary steps to improve your credit score.

The chances of success are higher when a company repairs your credit than you doing it on your own. Credit repair professionals can dispute errors, send letters, and contact creditors on your behalf. Below are five ways credit repair companies work to fix your credit score.

1. Evaluation

A great credit repair company will first get your credit information from the three credit bureaus. There will be a free consultation to review your report with a credit repair expert. If there is any negative information on your report, then the specialist will start helping you rebuild your score.

Consulting with a specialist first is better than evaluating a report by yourself. If there are errors, removing them can be daunting doing it alone. You can save time and money, and that is why it is advisable to hire a company to do the evaluation and follow up with the necessary steps should your report have any negative items.

However, something to note is that there is a limit to what a company can do on your behalf. They can offer monitoring services to avoid identity theft and correct errors in your report, but they cannot legally falsify claims for you. After reviewing your report, the company reaches out to the credit bureaus responsible for the wrong information.

2) Identify Mistakes To Dispute

The reviewing process can take some days because the specialists have to look into negative items, duplicate accounts, and payment history. Once the identification of errors on your report is over, they will pick any documents in your possession that can support the dispute they intend to make. The documents will get sent to the three bureaus and liaise with them to determine which items they should get rid of.

When rebuilding your score, the process is not fast, and you should be wary of any company that promises you quick results. If there are several credit reporting errors in your report, then you will need the help of a credit repair specialist. The experts understand the process and know the right documentation to resolve credit issues. As such, the process will be swifter than doing it yourself.

3) Work With Every Credit Bureau

A reputable company knows that information differs from the three credit bureaus. As such, they have to deal with each bureau going through the information identifying errors. Data furnishers such as credit unions, loans, and savings institutions, banks, mortgage lenders, as well as credit card companies give information to a bureau of their choice.

Since these furnishes do not report to the three bureaus, failure to check with every bureau could mean some of your information could get overlooked. Once the company identifies errors and has the right documentation, they will file a case to the credit reporting agency that is on your report. It is important to work with a reputable company when repairing your credit because a wrong one can worsen your reputation.

4) Investigation

Investigation into your case will begin once the credit repair specialist submits your case. Once the investigation is over and inaccurate information, they have to update the report. If the disputed information is true, there will be an explanation of the dispute in a 100 word statement attached to your report.

Once the investigation is over, there will be a reflection of the changes in your score. If the disputed information is accurate, it will negatively impact your score. However, if the disputed information is inaccurate, it will positively impact your score because the credit reporting agency will remove the inaccurate information.

5) Give Strategies

There is no legal action that a credit repair expert can do if the negative information in your report is correct. Therefore, you will have to take the necessary measures to rebuild your credit score. The company can advise you on some strategies to repair the score.

They can advise you to ensure your credit utilization ratio is below 30%. If you have unpaid debts, they will tell you to pay them off regularly as that can help improve the score. Another strategy will be to pay your bills on time to avoid lenders reporting you to the bureaus.

You can improve your credit score, but that will take effort and time, but it is worth it. Talking to an expert can help you develop better ways of improving your score.

Nishisingh

Nishi Singh is a professional journalist and editor in New Delhi. She has studied Mass Communication from National Institute of Mass Communication.