Credit Repair Help
How Does Credit Repair Work?
A recent Federal Trade Commission study found that one in five consumers have an error on at least one of their credit reports. If you have items on your credit report that don’t meet the three standards Padawer mentioned, then you may want to consider credit repair — either DIY or via hiring a professional.
A good credit repair company will first pull your credit reports from each of the three major credit reporting agencies to pinpoint your credit issues. Why all three? Because each credit reporting agency has its own “data furnishers” (aka lenders, credit card companies, debt collectors, etc.) who report your credit information to them. And there may be errors that appear on one of your credit reports, but don’t appear on the others.
Once those errors have been identified, you’ll then give a credit repair company any supporting documentation you might have or need. For example, if there’s a bill on your credit report that your husband was actually responsible for under your divorce decree, you can use that document to prove it shouldn’t be impacting you.
How Long Does Credit Repair Take?
Getting negative, inaccurate information off of your credit reports is one of the fastest ways to see an improvement in your scores. Since credit bureaus have to respond and resolve a dispute within 30 days (there are a few exceptions that may extend this to 45 days), it’s a short timeline that can help consumers who want to buy a house, get a new car or open up a new credit card soon and don’t have the time to wait to build good credit in other ways.
But that doesn’t mean a credit repair company can tell you exactly when your credit score will improve since some consumers’ credit issues are much more complex than others.
Are There Trustworthy Credit Repair Companies?
You may have seen ads for companies that promise your credit score will see “a 100-point jump immediately!” Sounds fishy, right? It’s because it is. In fact, it’s illegal for a credit repair company to promise results like that and any company that does so is one you should steer clear of.
There are other red flags you should keep your eye out for when looking for a reputable credit repair company.
Here are some of the things you should want from a credit repair company:
They know your rights and want you to understand them too. Before you sign any contract, a reputable credit repair company will explain your consumer credit rights to you and answer any of your questions regarding those rights.
They can explain, in detail, what they can do to represent you to the credit bureaus. Any good credit repair company knows what they can and can’t do for you and should be able to outline their services so you fully understand what you’re getting.
