How Do Credit Repair Companies Help Fix Your Credit Score

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If you’ve been denied a loan or credit, or if you’re tired of being turned down by lenders, there are steps you can take to repair your credit score and improve your financial situation. Hiring a company that specializes in credit repair can help you get a handle on where you stand financially. This article will explore how credit repair works, what you can expect from the process, and how to find the right company for your needs.

How Credit Repair Companies Work

Credit repair companies work by helping you dispute any inaccurate information on your credit report. This may include anything from late payments to bankruptcies or foreclosures. By working with these companies, you can take steps to improve your credit history and rebuild your financial profile. When you work with a credit repair company, they’ll help gather any paperwork or other documentation that proves the reporting error is in breach of the Fair Credit Reporting Act (FCRA). Every consumer has certain rights when it comes to their credit report, one of which includes disputing inaccurate information.

What To Expect From The Process

When you work with a credit repair company, you can expect a few things: 

  1. A review of your credit report – The first step in any credit repair process is a review of your credit report. This will help identify any inaccurate information that may be negatively impacting your score. It’s important to take the time to review your credit report and make sure it’s accurate before taking any steps.
  2. The disputing process – You’ll work with your credit repair company to gather any evidence that will help dispute the errors on your report. According to a review article on seattlepi.com, if you aren’t sure which company will suit you best, you can see the best credit repair companies at Seattlepi.com and make an informed decision. Once your selected company has collected together all the necessary documentation, you’ll submit your case to the credit reporting agency (CRA) listed on your report.
  3. The CRA investigates your case – once your case is submitted, the CRA must follow certain guidelines and investigate all claims of inaccurate reporting. If the investigation reveals that the disputed information is inaccurate, they’re required to update your report. If the investigation reveals that the disputed information is accurate, they’ll add a 100-word statement to your report explaining the dispute.
  4. Your credit score changes – Once the investigation is complete, your credit score will reflect any changes to your report. If you disputed accurate information, this could have a negative impact on your score as the CRA will indicate that there were “valid disputes.” If you dispute inaccurate information, this could have a positive impact on your score as the CRA will remove any incorrect information from your report.

How to Find the Right Credit Repair Company

When shopping around for a company to help fix bad credit, the first question to ask is how long the process will take and what you’ll need to do yourself in addition to paying for their services. When looking for a credit repair company, do your research and find one that fits your needs. Not all companies are created equal, so it’s important to find one that has a proven track record of success. Here are a few things to keep in mind when choosing a credit repair company:

  1. The company should be licensed and bonded – It’s important to work with a company that’s licensed and bonded. This means that they adhere to the fiduciary laws and that you’re protected should any problems arise. Doing your research ahead of time can help you avoid fly-by-night companies that don’t have the necessary credentials.
  2. The company should have a good reputation – you need to work with reputable companies on issues as important as repairing your credit history, the wrong company can so easily make your reputation worse. A quick online search can help you determine if the company has been in business for a while and has a history of satisfied customers.
  3. The company should be affordable – One of the biggest mistakes people make when working with a credit repair company is choosing one that’s too expensive. Make sure to find a company that’s affordable and fits within your budget.
  4. The company should offer a money-back guarantee – A good credit repair company will offer a money-back guarantee. This ensures that you’ll only pay if you see actual results. If you don’t like the service or feel like they aren’t living up to their promises, you should be able to get your money back.
  5. The company should focus on positive and long-term results – A good credit repair company will provide positive and long-term results. They’ll work with you to improve your credit score so you can achieve your financial goals.

How To Repair Credit Score On Your Own

Some companies claim they can fix your bad credit in just a few months. That might be true, but it’s important to remember that they’ll only be able to help you dispute inaccurate information on your credit report – you’ll need to take steps to improve your credit score on your own:

  1. Set up budgets and stick to them: It might seem tedious, but it’s the best way to avoid impulse buying and spending money you don’t have. Pay off any balances that you have on your credit cards each month: This will show potential creditors that you have the discipline necessary to pay off your debts.
  2. Pay your bills on time: This is an obvious one, but it’s extremely important. Paying late or missing a payment altogether can damage your credit score even more than making only the minimum payments.
  3. Don’t close old accounts: While closing old accounts might seem like a good idea since they’re not used anymore, this can hurt your score by reducing the average age of your accounts. Having more than one type of account also increases the likelihood that you’ll be approved for a loan or credit card in the future.

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When you’re looking for ways to repair your credit score, you must take a holistic approach. Improving your credit score takes time and effort, but the result is worth it. Your credit score is based on several different factors. If you’re having trouble understanding how it’s calculated, you can get help from a credit counseling service. They’ll be able to help you understand your credit report and what you need to do to improve your score.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.