People with bad credit face many challenges accessing credit from lenders. This is because their credit reports do not give confidence that they can repay any money advanced to them. According to Sfgate.com, such individuals can use the services of credit repair companies to get back on track with their finances. Simply, the work of credit repair companies is to help you improve your credit score and make it better.
Credit repair companies help consumers with bad credit to improve their ratings. This comes at a fee. When you choose to work with a credit repair service, you allow them to review your credit report and advise you on how to improve it. The first thing they will do after getting your report is to deal with mistakes in the report. Thereafter, they will address any negative details in it.
Everything about Credit Repair Companies
If you have decided to use a credit repair company, you should know the work they do. That way, you will know what to expect from their services. Most importantly, you will be able to tell a fraud credit service from the genuine ones. It is important to know that credit repair companies do not remove negative information from your report especially when it is accurate.
So, how do credit repair companies work to help you fix your poor credit score? Here is a detailed procedure of how they do it:
- Getting your credit report. Credit reports are available for free from credit reporting agencies: TransUnion, Equifax and Experian. Therefore, it is important to take note of this so that you do not pay to get your credit report.
- Understanding and analysing your credit report. The first thing to solve your credit score problem is by first understanding its details. Therefore, a credit repair service will walk with you on this journey to understand what it means. From this point onwards, you can now know what things to do to address your bad credit rating.
- Filing disputes if any. Sometimes, credit reports may have errors captured in them. Therefore, the credit repair service in liaison with your creditors and credit reporting agencies will file disputes of such details. This may include details of someone with the same names or accounts opened without your knowledge among other things.
As your credit repair company does the work for you, it is important to remember that they cannot remove accurate negative remarks from your report. Therefore, you must treat anyone offering to do so as a scammer.
- Addressing the negative items on your report. After dealing with all the disputable details, the credit repair service will proceed to help you deal with issues affecting your credit score. These include missed payments, delayed payments, misunderstandings between you and your lenders among other things.
At this point, you will now deal with accurate information regarding your poor credit performance. The best thing to do is to start by paying off the huge credit balances on your accounts. In addition, you will have to pay your debts on time if you want to restore your good credit score.
Important Tips
- When you pick a credit repair service, it will handle the process of fixing your credit score in consultation with all the stakeholders. However, they will walk with you throughout the process to make sure that you understand what they are doing.
- There is no magic in what a credit repair service does. Therefore, do not expect them to fix the issue overnight. They will follow the due procedure to the end.
- Do not pay any fees upfront when using credit repair services
- Keep off any service promising to remove accurate negative details of your report. It is not possible
- Start paying your debts on all open accounts to start redeeming your credit image
Final Advice
Credit repair companies help consumers fix their credit scores. However, you must make sure that you are working with the right people to get the best results. Mark the signs of a scamming service by applying the information provided here. Alternatively, you can do the work for yourself because you can access your credit report and analyse it on your own.
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