Can Banks Help with Credit Repair?

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When people look at their credit reports and find questionable items, they often wonder if banks can help them with credit repair. Banks are financial institutions, so it’s understandable how someone could assume they perform this service. However, banks do nothing at all to help you dispute what is in your credit report.

How to Fix Your Credit

If you want to fix your credit, there are steps you can take. However, none of these steps will involve your bank. The first thing you need to do is obtain copies of your credit report and your credit score from all three credit bureaus. You need to know what your score is, but your credit and debt is listed on your credit report.

Obtain Your Credit Report

You are allowed to receive free copies of your credit report from all three credit bureaus once a year. You can go to Annual Credit Report.com to get all three, or you can get one from each of the three bureaus individually.

It is important to receive all three reports because they can have different information. Sometimes the same creditor will have different information on two different reports. They may have stopped reporting, in which case the debt may show up as being higher than it actually is.

What Is in Your Credit Report?

First of all, your credit report will have your personal information, including your name, other names you may have used, your birth date, your address, your employer, your phone number, and more. You will want to go over this information. Sometimes it can be inaccurate. You can keep past addresses or employers if you want to.

Your credit report will also have a section for any court related financial issues, including judgments, liens, bankruptcy, or wage garnishment. Although these items will bring your credit score down, they will fall off after a period of time.

Next, you will find the information on your creditors. You will see your loans, credit cards, and more. Each account will be listed as well as whether payments have been made on time. You can see the original amount of a loan or the credit limit on a credit card, as well as what has been paid off and what you owe.

Your credit report will be broken down into five categories, all of which combine to make up your credit score. The five major categories are as follows:

  • Your payment history (35% of score)
  • Your credit usage (30% of score)
  • The length of your credit history (15% of your score)
  • The type of credit you have (10% of your score)
  • Credit inquiries (10% of your score)

Check Your Credit Report for Errors

The Federal Trade Commission has found that approximately one in five people have an error on their credit reports. That translates to a 20% chance that something is inaccurate. For this reason, it is important to check your credit report regularly to make sure that it is accurate.

Fixing the errors on your credit report is called credit repair, and the banks will not dispute items for you. There are companies that specialize in credit repair, and they are familiar with all of the laws and regulations that relate to credit, how it is reported, and what is legal.

Some people try to repair their credit on their own, and this is possible if there is one simple mistake. You can go to the websites for each of the three credit bureaus, Experian, Equifax, and Transunion. You can dispute any inaccurate information online. You should dispute the mistake with all three bureaus because fixing one will not fix the other two.

You should be sure to file each dispute separately. You should know that this can be a lengthy process, and the credit bureau may need additional information. If it seems to be complicated or becomes challenging, credit repair companies are available to help you get it done. They do this job all day every day, and they have a lot of experience dealing with credit bureaus and creditors. They also know all of the rules and regulations surrounding credit repair, so they can simplify the process.

How Long Do Negative Marks Stay on Your Credit Report?

There are many different kinds of negative marks, and they stay on your credit report for varying amounts of time. This is why it is so important to make on-time payments. Most items stay on your report for seven years, including the following:

  • Late payments
  • Repossessions
  • Foreclosure
  • Short sale
  • Tax liens (from date of payment)
  • Charge-off

In addition, collection accounts remain on your report for seven years and 180 days from the original date of delinquency, and bankruptcy stays on for 10 years from the date of filing. Chapter 13 only stays for seven years.

The best way to make sure that your credit score stays where you want it is to pay off debt on time.

What to Do If You Have a Bad Credit Score After Credit Repair

If you have repaired your credit and eliminated any errors and you still have a low credit score, you may need to rebuild your credit. When you rebuild your credit, the bad marks stay on your report, but your new payment history and credit usage will improve your score.

You will want to pay down your credit card balances so that you are using 30% of your credit or less. If you have older credit cards, you should not close the accounts. You can spend a little bit of money each month and pay it off. You might consider opening a new credit card to build your credit. If your credit is poor, you can apply for a secured credit card.

When you apply for a secured credit card, you will deposit an amount of money that can serve as your credit limit. If you don’t make your payment, the credit card company can take this money. It offers you an opportunity to build credit and the issuer has security because you have made a deposit.

How Can a Credit Repair Company Help?

A credit repair company is a professional company that can examine your credit reports and dispute any errors. They can make sure that everything on your credit report is 100% accurate and reported according to the laws.

When you hire a company to help with credit repair, they will make the entire process easier for you. They know how to read the credit reports and understand how to fix the inaccurate information. They also understand the rules and laws that dictate what creditors can and can’t do.

A credit repair company is different from a credit counseling organization because they are focused on repairing your existing credit. A credit counseling agency, on the other hand, will advise you on how to manage your debt and your finances, and how to improve your credit.

Credit repair companies can help you find errors on your report, including the following:

  • Inaccurate accounts
  • Incorrect inquiries
  • Accounts that belong to someone else
  • Duplicate accounts

They will find these issues and dispute them for you. Once the credit bureau receives the dispute, they are required by law to correct the mistake, remove the information, or verify it with the creditor.

Credit repair agencies vary in cost, but it can save you a lot of money in the long term. When you have a low credit score, you will pay higher interest rates on your auto loan, your mortgage, and more. Repairing your credit can lower those interest rates to a more affordable level.

What to Expect From a Credit Repair Company

When you call a credit repair company, you can expect them to explain to you what the process is and what they will do, as well as answer any questions you may have. They shouldn’t make promises about increasing your score in a certain period of time. They should tell you what they will do and how they will do it.

These companies are professionals who have been working in this field for many years, and they have the experience and knowledge to help you eliminate inaccuracies on your credit report.

Final Words

When you have concerns that there is something inaccurate on your credit report, the only way to change it is to challenge it. You can file a dispute online yourself through each of the three credit bureaus, or you can hire a credit repair company to help you.

The bank does not dispute information on your credit report for you. You have to do it yourself or work with a credit repair company. In addition to disputing inaccurate items that are reported, you can take other steps to improve your credit. Building a history of on-time payments and keeping your credit utilization below 30% will help a great deal. Improving your credit will lower your interest rates and allow you to save money in the long-term. We can help to restore your credit if you have any issues at all.

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Grandaddio team

We encourage people across the nation to live a life with more options. The Grandaddio Credit restoration and advisory program is a great step in that direction. If your your credit reports are hurting we know how to help.

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