Is Credit Repair Worth it?
Real Credit Repair Results, W/no Monlthly ongoing fees
People often wonder, “Is credit repair worth it?” Credit repair can help your credit score if your credit report contains inaccurate information. However, credit repair cannot help with late payments or charged off accounts that are legitimately on your report.
Even if you have other negative marks on your credit report, it can be worthwhile to use a credit repair service. Every negative mark that is removed will improve your score.
It is important to make sure that your credit report is accurate and up-to-date so that you can get the best possible terms if you are applying for a loan.
How Does Credit Repair Work?
Credit repair companies will get copies of your credit report from all three credit bureaus. They will analyze the information on your reports and go over it with you. They will look for inconsistencies and inaccuracies.
They examine all three reports because each credit bureau receives information from different creditors. Some may only report to one or two of the bureaus, and some may report information once and then never update it. It is important that everything on your credit report be accurate.
When they review your credit reports with you, you can let them know if you notice anything that is inaccurate. Inaccurate information can include any of the following:
- Duplicate account
- Inaccurate information
- Someone else’s account
- Incorrect inquiry
- Debt that should have aged off the report
- Misspelled name
These are the most common items that people hire a credit repair agency to remove. Once you have gone over the information with them, they will file a dispute on your behalf. They will communicate with the credit bureau to make sure that the inaccurate information is removed.
When the credit repair agency files the dispute on your behalf, the credit bureau has to update the information, verify the information, or remove the information. If they cannot prove that the debt is yours, it will be removed. This can happen with a collections account. Sometimes debt companies buy charged off debt from credit card companies, but they are unable to verify that you owe the debt because they don’t have all of the information. In these cases, it may be removed from your report.
Can You Dispute Items on Your Credit Report Yourself?
You can go to the websites of the three credit bureaus, Experian, Equifax, and Transunion. Each one has a page where you can choose and dispute information on your credit report. However, they may need evidence or you may need to know more about the rules and regulations to determine exactly what you can dispute.
If you know that there is one item on your report that needs to be disputed, you can probably do that on your own. However, if you are trying to clean up your credit report and have someone else’s information tied in, you might want to use the professionals.
Can Credit Repair Fix Bad Credit?
What credit repair can do is dispute inaccuracies on your credit report. If you have someone else’s bankruptcy (for instance, an ex-spouse) on our credit report and it is removed, that will improve your credit. In fact, if you plan to get a mortgage or an auto loan, you will definitely want something like this removed before you begin the process.
However, credit repair cannot remove late payments, missed payments, or overuse of your debt. You will need to work on those in another way. To improve your credit score, you will need to make a plan and work on it for a period of six months or more.
How to Improve Credit
If you have missed payments or late payments on your credit report, you should work to correct that first. You need to get all of your debt caught up first. It is important to make all of your payments on time for six months. Making late payments really hurts your score. The breakdown for how your score is affected is 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)
In addition to making your payments on time, you should try to pay your credit cards down so that you are only using 30% or your total credit or less. If you are able to do this, it will give your score a boost. In addition, do not close cards that you have had for a long time. Even if you aren’t using them, keep them open because it shows that you have more credit available to you that you aren’t using.
If you aren’t able to get your credit card usage down, it may benefit you to open another account. You won’t want to use the account, but by increasing your available credit, you will decrease your credit utilization.
Does Bad Credit Ever Go Away?
Most bad credit marks stay on your report for seven years. For this reason, it is important to remove anything that is inaccurate. Seven years can be a long time to live with bad credit. A collections account has the largest impact for the first two years after it is reported. Over time, its impact lessens.
Court related financial problems also give you a huge negative. This might include bankruptcy, a lien, a judgment, or wage garnishment. Any of these items will bring your credit score down.
If you are stuck with negative marks on your credit report, you can counteract it by rebuilding your credit. You can consider getting a secured credit card for this reason. The credit line is backed with a security deposit, and if you default, the issuing bank can take the deposit to cover your expenditures.
How to Know If a Credit Repair Agency Is Legitimate
There are a lot of different credit repair companies out there, and it can be difficult to know which ones are good and which ones aren’t. It is important to work with a company with experience and knowledge because your credit score is important to your livelihood. Having a bad credit score can cost you a lot of money over the years.
When you are looking at a credit repair company, you can use the following guidelines to ensure that you are dealing with a professional organization. First of all, they should only charge you for credit repair services if they actually provide them. You should have a contract, and they should not charge you before they complete the work.
In addition, they should let you know that you can dispute the items yourself by filing a dispute online with the three credit bureaus or by sending a letter in the mail. It Is a legal requirement that they inform you of this right.
A good credit repair company will never promise to remove information that is accurate. In fact, if information is accurate, they shouldn’t even try to remove it. You will go over your credit report with them before they begin the dispute, so they will know what is accurate and what is not.
A legitimate credit repair company will know the laws and rules surrounding credit repair. They will do more than dispute items for inaccuracy. They can help you remove debts that should have aged off the report. They can make sure that balances are being updated. They can also remove items that belong to someone else.
They should know the laws and be able to explain everything about the process to you so that you can make an informed decision.
When to Call for Credit Repair Services
We can help you repair and restore your credit if you have any inaccuracies on your credit report. You should check your credit regularly so that you find anything inaccurate as soon as it appears on your report. If you find something, you can call and we can get the process started.
The time to call for credit repair services is when you know that something on your report is wrong. The credit repair service will dispute the item for you, and anything that is inaccurate or unverifiable will be removed. However, if the credit bureau verifies the debt, they will update it or keep it on the report as is.
People often wonder whether credit repair services are worthwhile or not, and the answer is that they are as long as you have something to dispute on your report. Your credit score impacts your interest rates and your ability to get an auto loan or a mortgage. If you leave inaccurate information on your credit report, it will take seven years to fall off.
When you find inaccurate information on your credit report, be sure to remove it as soon as you can. Once you get the process started, you will be on your way to an improved and accurate credit score.
Ready to take your Credit to the
Ready to take your Credit to the