If you’ve done any research on the subject, you know there’s a lot of hype surrounding credit repair. Can these companies really fix your credit report? Do the strategies and tactics they employ really work? If you are looking for answers to these questions and more, you have found the right article. In the next few paragraphs, I’ll give you the facts and fiction about credit repair agencies.
So what is credit repair? Credit repair is the process of fixing your credit report through a series of disputes with credit reporting agencies. If there are inaccuracies on a persons credit records or even old accounts that should have been removed after a certain period of time, these entries can generally be removed by simply disputing the item with the credit reporting agency. Although the process seems fairly straightforward, there are some ins and outs to credit repair that all consumers should know before taking this route to fix their credit reports.
Fact #1 – Old accounts and inaccuracies can be removed.
You can remove old accounts and inaccurate information that may be affecting your credit score from your credit records. Credit reporting agencies have guidelines and federal laws they are obligated to follow. If you have found an item on your credit report that you are sure is inaccurate, you can dispute this item with the credit reporting agency and have it removed.
Fact #2 – Some creditors on your report may be reporting illegally.
It seems far-fetched, but it is true. Creditors, just like credit reporting agencies, have guidelines and laws they are obligated to follow when reporting to a person’s credit file. For example, if you have a judgment against you, possibly from a small claims court lawsuit or something similar, and were not served with notice of the lawsuit you stand a good chance to get that judgment reversed in court. These errors in procedure and reporting do in fact take place, so don’t hesitate to question them.
Fiction #1 – A credit repair company can make legitimate items magically disappear.
No agency, no matter how skilled or seasoned in the credit repair field, can remove a legitimate debt from your credit report. If the debt is valid and the creditor has followed all legal guidelines, the record is there to stay until it is either paid or the creditor stops reporting it.
Fiction #2 – Credit repair agencies have “inside contacts” that can push a button and raise your score.
Although it would be nice to have direct contact with the person charged with manning the credit score “magic button”, unfortunately it just doesn’t work like that. A person’s credit score is calculated by a mathematical formula automatically, and is not manually assigned to individual consumers. To say that it can be altered by simply making a phone call to a secret contact is just ludicrous.
It is important to know that there are legitimate credit repair agencies out there. If you want to fix your credit report, these agencies can provide you with a great service. But be wary of over-the-top claims and hyped up advertisements. If you are serious and want to fix your credit report, be sure you are dealing with a reputable company who has proven results in the field of credit repair.
While it’s possible to increase a bad credit score fast, it’s usually expensive. This is because you have to deal with agencies who often charge very high fees. The good side is that you can increase your credit score fast even if you don’t have money. Here you need to do-it-yourself.
Obtain credit reports
The first thing you need to do is to obtain credit reports from the credit reporting bureaus. The fair and accurate credit transactions Act (FACTA) entitles you to free credit reports from each of the bureaus every year; therefore, you should not be scared when requesting for them.
Here you should approach Equifax, TransUnion, and Experian bureaus and ask for the reports. When you get them, you should thoroughly scrutinize and compare them and confirm if the details in them are correct.
Dispute incorrect data
If you go through the reports and you find incorrect data, you should dispute it. Here you need to contact the bureau that gave you the data. Many people make the mistake of thinking that disputing incorrect data will hurt their scores, but this is untrue.
Disputes aid in increasing your score; therefore, you should be very confident when raising a dispute.
When you notify the bureau about incorrect data, it will contact the creditor in order to respond to the dispute. You should be patient and wait for 30 days for the problem to be solved.
Once the 30 days are over, the bureau will give you a reply and if you are not happy with it, you should launch another dispute. To make it easy for the bureau to process your dispute, it’s recommended that you provide additional documents that prove that the data in the report is inaccurate.
Once the problem has been solved, you should now set yourself to begin repairing your credit score. Here you need to ensure that you pay your bills on time, pay off personal loans, negotiate with your creditors when you are behind on bills, reduce your outstanding credit card balances, and your credit accounts remain open.
To be on the light, you need to do your research and understand how bureaus determine their credit scores.
After six months of doing the right things, you should contact the bureaus and ask them to give you your credit report and scores. If the data is correct, you should be able to see great changes in your credit score.