What Are Credit Repair Services and Why Should I Use Them?

Not many people think or consider their credit history until they need to borrow money. It could be a new house or apartment they want to own or rent. It could be to apply for a credit card with great benefits. It could also be to apply for a loan.

When you fail to repay or have a large amount of debt, it looks bad to future creditors. Over 50% of Americans who try will fail to get approval from lenders due to bad credit.

There’s still a way out. There are credit repair services you can use to help you fix your report.

Do they really help compared to attempting to fix credit on your own? Keep reading to figure it out.

What’s the Purpose of Credit Repair Services?

Although most of us have a credit history, we do not understand the fine details behind how it works. This lack of understanding can hurt our credit score. When your score is low, this is the main reason you may look for professional help.

Credit repair services help you learn and analyze the intricacies of your report so you can understand it. Not everyone needs the service though. If you have decent credit, you can continue to monitor your report on your own and pay your bills on time.

If your score is in the low 600s or falls below it, credit repair services will offer you guidance on tactics on how to fix it. You will make the most out of the money you spend using the service you have errors on your report that is damaging your score.

About 20% of people have errors in their reports. These errors may be due to false debt added to incorrect debt added. This can happen when creditors mix up reports and mistake identity or you are a victim of stolen identity.

Disputing Errors on Your Credit Report

You can dispute errors on your report, but doing so is time-consuming, especially because you spend plenty of time waiting for a response. Getting a credit expert to do the work for you is simpler and swifter. When you hire a credit repair company, they will:

  1. Complete a Credit Report Analysis: Experts will look at all 3 credit bureau reports to get a complete report on your history to see what’s accurate and what’s not
  2. Dispute Negative Items: Anything false on your report is disputed and removed off your report which will help boost your credit score
  3. Manage Escalating Those Disputes: During moments where removing an item takes more work to remove, experts will manage the additional work and steps involved

Throughout the entire process, credit report services will keep you informed of what is going on each step of the way and they will mentor you the entire way. There are also certain items more likely to be successfully disputed than others.

Outdated Items

Negative items have a limit on how long they can stay on your report. Hard inquiries, for example, fall off after two years. Although creditors should no longer report the item, many still may and the only way to remove it is to create a dispute.

Fraudulent Items

This happens when you are a victim of identity theft and have false items on your report that do not belong to you. You should report identity theft separately, but you also want to work with the credit bureaus to correct the mistake. Although items on the account do not belong to you, the process can still take long without a credit repair service.

Unsubstantiated Items

These are items that cannot be substantiated by the information providers. In the event they cannot prove that debt or item belongs to you, they have to remove it. With this, you can increase your credit score.

Erroneous Items

The easiest errors to dispute are erroneous items. It concerns basic errors such as misreported amounts or spelling errors. We all know a decimal point or a common in the wrong place can make a huge difference in what you owe. These inaccuracies are investigated and corrected.

Work With a Legitimate Credit Repair Service

Credit repair cost is fair when you work with a legitimate company. You should always look up a credit repair service before working with one. On top of this, there are ways you can spot a legit, honest, and ethical company from one that only wants to take your money.

A legit service will only charge you for their service after they provide it. They do not and will not ask for any money upfront to do work. This should also be in the contract and agreement.

They will also never give you promises to erase any information on your report even if it is false. Quality credit services understand the law in regards to credit matters and ensure to follow it while upkeeping your rights to work on for you. They should not force you to use the service, and state you do have a right to fix your credit on your own.

Raise Your Credit Score With a Credit Repair Service

Most of us have our reasons for having poor or bad credit. A lot of it may be due to inaccuracies. Rebuilding your credit will take time. It will not happen overnight, but you will be able to have quicker results when you use credit repair services.

You may want to fix your report within a certain amount of time to apply for a loan you expect that you’ll need. Although you can fix your credit on your own, you may have minimal results or have results that will take longer.

It’s a lot better to work with someone who understands how a credit report works. You will be happier with the outcome.

If you found this article helpful and would like to read more informative blogs related to finance, check out more blogs on our website.

Posted in: Personal Finance

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