Your Credit Report?
Credit and debt go hand in hand. In the majority of cases where handling your debt is proving to be a challenge, you’ll find that your credit has been severely impacted.
So, repairing your credit would make sense, especially if you reach the point where you can’t even apply for credit. If you do need help, there are companies that repair credit on your behalf. But are they really necessary?
What is Credit Repair?
Credit repair refers to fixing errors on a credit report while settling your debts. Credit reports are often incorrect, despite their influence over creditors when assessing your application.
Humans prepare your credit with the assistance of algorithms and computer programs, which, of course, are not infallible. Credit repair, however, does more than dispute errors. You’ll need to understand that there can be “miscommunications” when you attempt to settle your debts.
Along with the errors such as an incorrect account status showing that the account has been settled in full, rather than paid in full, credit repair can also look at formal errors like the wrong name, account number, and address. Basically, credit repair will look at any errors that could have an impact on your score. This can also help you in streamlining your debt management process should any connections be made.
When Does it Work?
Like many other financial services, credit repair works better in specific instances. There are, in fact, a number of conditions that must be met should you wish to use a credit repair service.
There are legitimate errors
This means that negative entries on your report are mistakes made by the one who reported your activities to the agency themself. Credit repair, however, doesn’t remove the actual entries.
Your credit report data can’t be verified
For example, a lender might have left a negative remark on your report, and that lender went bankrupt soon after they provided the agency with their report. An agency should get in touch with the lender to verify that the information is correct. As that lender is no longer in business, however, that agency wouldn’t be able to reach them.
Therefore, that agency should remove the entry regardless of whether it’s accurate or not. This exploitable loophole is an effective way of increasing your score and removing a negative entry from your report.
The lender cooperates
Not every creditor is open to negotiation, especially when quite large amounts of money are concerned. Some have had negative experiences with services or are just plain stubborn, even when the offer is from a reputable credit repair service. If your lender is open to cooperation, however, a credit repair service can help to considerably raise your score.
How Credit Repair Companies Work?
Yes, you can repair your own credit. And you can get a result if you do it right. The problem is, however, that people rarely notice mistakes on their report. And with so much information on your report, you might not even know what to look for.
Not only that, but the process can be a tedious one. You have to raise your dispute at the specific agency that made the report. Then you have to sit back and wait for a response. There are other things you could be doing in this time, rather than worrying about your paperwork.
This is where a credit card repair company can help. They go through the process so you don’t have to. They will do the following:
- Make a request for your report from all relevant agencies
- Look for any mistakes and errors that may be in your report
- Contact the relevant agency and prepare your documents. Once they’ve made any corrections, they’ll provide you with a free copy of your new, updated report
- Contact lenders and work out a deal. This makes it easier to have negative remarks removed or debts settled.
- Assist you by planning on how to improve your score through modifying your financial habits
So yes, credit repair companies work. Whether or not you need them, however, is down to you. If you have a way of disputing your reports and are confident that you can secure the right connections to do so, you can take the independent route.
If you’re unsure of how credit repair works, however, seeking help from a professional credit repair company would be the better option. While you’d be paying for the assistance, the odds are that you’d get a result. Here’s a good resource if you want to increase the chances of fixing your credit report.