A poor credit history can be daunting and difficult for an individual. But remember that no one is perfect, and people do make mistakes that have an impact on the credit score. There are a few mistakes that people tend to live with, while there are others that can be fixed. This is what credit repair is all about!
People with bad credit scores look forward to companies that can help them with credit repair services. Though there are several companies that offer such services, not all of them can be trusted. Before entrusting the responsibility, it is necessary to learn everything there is to know about the company and the services it provides.
But, before that, one needs to know more about credit repair.
What is credit repair, and what do people need to know about it? Credit repair involves a process in which credit repair companies dispute the negative entries in a report. The report usually has entries from creditors and includes reports from collection agencies, lenders, and credit card companies. The company usually reviews the reports from different credit reporting agencies before trying out credit repair strategies.
If you are facing problems, you can get help to fix your credit report from professionals. However, before you seek help, you need to know a few important things about credit repair.
It can take Time:
A poor credit score develops over time and for a variety of reasons that are sometimes beyond our control. If this has to be fixed, it will take time, and there is no magic formula for fixing it. One needs to be aware that things do not change overnight, and the process of identifying and disputing the entries on reports does take time. It takes time for the credit reports to be updated and the credit scores to change. One needs to remember that credit repair is never an instant fix.
Account Closure Doesn't Help:
Many people believe that closing a bad account will help their credit score. There is a belief that in the credit report of a person only open accounts are visible. As a result, if an account is closed, it will not be reflected. No, this is not true, as closing an account will cause damage to the credit score. Also, if a credit card account is closed, it can reduce the credit utilization in some cases.
Credit Repair Doesn’t Mean Good Credit Score:
Credit repair means removing wrong or inaccurate information from the report. It does not mean rewriting the credit history or settlement of debt. Even when some negative entries get removed, it might reflect a slight increase in the credit score. It will not mean that the credit score will become great.
It is Difficult to Remove Negative Information that is Accurate:
It is really tough to remove any kind of accurate negative information present in the credit report. There might be a few strategies that can help in removing the negative information, but it does take a lot of time and effort. Things might not turn as expected and your credit score might not improve as you want it to.
The Results are not permanent:
Credit repair can yield a high credit score but it will not last long until you make changes in your financial habits. Credit reporting agencies usually remove items that are in dispute as long as the dispute is active. When this happens the credit score rises but again when the disputed item is found valid, the item is not permanently removed and the score gets back down again.
Documentation is Must:
It is never enough to mention that there is an error in the credit report. It is necessary to show proof that the individual is not responsible for the debt. For instance, in a situation where an individual goes through divorce and the former spouse’s debt shows up on the report, the relevant paperwork needs to be shown to show that the debts are divided.
You Can Control Your Credit Score:
The credit repair process can help raise your credit score, but if you wish to maintain this score, you have to focus on healthy financial habits. You need to make changes in your life, like making payments on time. You need to check your reports regularly so that you can avoid situations that force you to think about credit repair services.
Contact some of the reputable credit repair companies that can assist you with the services.
Source: Story.KISSPR.com
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