Nine Ways Credit Repair Companies Really Help

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When you have bad credit, or even bad marks on your credit report, it can be difficult to get the best interest rates for a mortgage or an auto loan. It can hurt your ability to rent a home, and it can impact your ability to get a job.

Credit scores are calculated using a number of factors, and it can be frustrating to work on raising your score without seeing the results you need. You may feel all alone in this, but credit repair companies are there to help you go through your credit report and make sure that everything on it is accurate.

Although there are different choices of credit repair companies out there, you need to exercise caution when you are choosing one to work with. Credit repair companies aren’t all created equally, and some aren’t worth your time or money. You need to know what these companies do and what to look for so that you choose one of the best.

Read on to learn what the best credit repair companies should do for you.

  1. Credit Repair Companies Should Offer a Free Evaluation

When you first speak to a credit repair company, you will explain why you think you could use their services. They specialize in helping you remove inaccuracies from your credit report, and they will listen to all of the information that you have. They will then request copies of your credit report from the three credit bureaus, Experian, Equifax, and Transunion.

They need to get copies of all three credit reports because they do not necessarily have the same information. Creditors do not always report to all three bureaus, so it is important to compare the information on all three.

It is important to know the things that a credit repair company cannot do for you. If you have bad credit because you are behind on your payments or you aren’t able to pay your bills, the credit repair company will not be able to help you. They can only remove items that are legitimately inaccurate.

When you meet with the credit repair company, they will let you know whether or not you are a good candidate for credit repair. A good credit repair company will be honest with you. They will never ask you to misrepresent the truth or make promises that they can’t keep.

  1. Credit Repair Companies Will Identify Items That They Can Dispute

Once they have the report, they will review your credit report with you to determine which items are eligible for removal. They will look for the following types of inaccuracies:

  • Duplicate account
  • Inaccurate information
  • Someone else’s account
  • Incorrect inquiry
  • Debt that should have aged off the report
  • Misspelled name

As you go over your credit report, you can let them know if the credit reports have mistakes concerning any of the items above or your payment history. If they are able to identify errors on your report, they will let you know what documentation they need. Once you deliver it to them, they will dispute the errors and work with the credit bureau to have them removed.

Credit repair companies help by making sure that any inaccuracy is addressed in your dispute. They will have a plan and go through every item on your credit report to make sure that each one is valid and accurate. They will make sure that the balances and the debts match on all three credit reports.

  1. They Will Let You Know That You Can Do This Yourself

When you meet with a reputable credit repair company, they will let you know that you can repair your credit yourself. You can get your free credit report from all three credit bureaus. You can also find inaccurate information and dispute it. You can fill out online disputes for all three credit bureaus.

The credit bureaus might ask you for further information to prove that the items are inaccurate, and you will need to provide it to them. You can approach it on your own, but it might take a lot of time and energy.

The thing to remember is that you can do it yourself, but the best credit repair companies will have experience dealing with the credit bureaus and filing disputes. They are familiar with the rules and regulations, including the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. They know all of the details concerning what you can dispute, and they already know what kind of proof you need.

The important thing to remember is that a good credit repair company will advise you that you can do everything they do on your own, even though you may still want to use their services.

  1. They Can Dispute Items That Belong to Someone Else

Sometimes people find items on their credit report that belong to somebody else. There are a number of reasons that this might happen. Sometimes you have the same name as another person, and their items accidentally show up on your report. This may be a family member, or it could be a complete stranger.

In these cases, you will give the credit repair company any documentation that can prove that the item doesn’t belong to you. They will file the dispute and work with the credit bureaus to remove the item from your report. Another situation where this could happen is after a divorce. Often the creditors continue reporting to the credit bureaus, even when the court has assigned the debt to your ex-spouse.

In a divorce situation, the credit repair company can submit your divorce decree and your divorce settlement to the credit bureaus to have these items removed from your credit report. With this proof and evidence, you will have these items removed, and it will improve your credit score.

Another reason that you could have information on your credit report that belongs to someone else is that you have been the victim of identity theft. Identity theft occurs when someone else opens an account or multiple accounts in your name and never pays them. If this happens to you, you want to be able to catch it and deal with it as soon as possible.

Identity thieves can open up bank accounts, credit cards, loans, and more in your name if they have your social security number, your name, and a few other pieces of information. Not only can this harm your credit, but it can impact your ability to manage your own finances. It can also be hard to prove, especially if you don’t find out about it right away.

While identity theft hurts your credit and can impact your finances, it can do even further damage. The identity thief can use your social security number to get a driver’s license, file taxes, and commit other crimes. This can haunt you for years as you get your name cleared.

You may not be able to find out who the identity thief is right away, but if you regularly check your credit report for information that doesn’t belong to you, you will know right away when someone steals or tries to steal your identity. Your credit repair company helps you by having these items removed from your credit report.

You can add a fraud alert to your credit reports. The fraud alert will restrict the ability of anyone to use your social security number to open accounts. Every time your social security number is used to open an account, the creditor will call you to verify your identity.

  1. They Can Remove Duplicate Accounts

There are three different types of duplicate reporting that can occur. In some cases, your original creditor will accidentally report your information on an account more than once. For example, if you have one car loan, but there are two showing up from the same creditor on your credit report, you are a victim of duplicate reporting. This can be hurtful to your score because you appear to have twice as much debt than you actually have.

In addition, if you have a credit card that is charged off or any debt that you default on, it might go to a collection agency. Sometimes the creditor assigns the debt to a collection company, but other times they sell the old debts for pennies on the dollar.

These collection companies often try to collect the debt for a period of time, and then they sell it to another collection company. You may wind up with the same debt being reported more than once. This is considered a duplicate debt. It is important to remove these duplicate items from your credit report because they make your score go down more than once.

If you notice that the original creditor and a collection agency are reporting the same debt, or that multiple collection agencies are reporting the same debt, you are a victim of duplicate reporting.

If you find that collection companies are reporting duplicate accounts on your credit report, you should work with a credit repair company to remove them. Credit repair helps with this situation because you are only responsible for the debt once, and it should only be on your credit report one time.

  1. They Can Help You Remove Inaccurate Information

Your credit report has a lot of information on it. The first thing you see is your name, address, phone number, employer, and other personal information. They might have your name misspelled, or they might have the wrong address. If they have old addresses listed, you don’t need to worry about that. It will not have an impact on your credit report or your credit score.

Next, your credit report will list any court related legal financial problems, including judgments, liens, bankruptcy, or wage garnishment. If you have any of these items on your credit report, it will impact your ability to borrow money.

Your credit score is determined by a formula that looks at five different parts of your credit report:

  • 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)

You should review your payment history very carefully. If they have any late payments listed that are not accurate, you can dispute them as long as you are able to provide proof that you have always been on time. Any mistakes in late or missed payments will have a significant impact on your credit score.

Removing inaccurate information is a good idea if you are getting ready to buy a car or a home. Your credit score will help determine your interest rate, and those kinds of long-term loans will carry interest payments for a long time. The higher your interest, the more you will end up paying.

  1. They Will Make Sure That Debts Are Accurate, Timely, and Able to Be Substantiated

Most credit repair companies will try to remove inaccurate information, but the best credit repair companies will also focus on the timeliness and the debt’s ability to be substantiated as well. Once the inaccuracies are identified, the credit repair company will look at when the debt was filed and when it should fall off your credit report.

Most debts stay on your credit report for seven years. After that time, they will fall off and will no longer be a part of your credit report. The following types of debts will fall off after seven years:

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

Collections accounts remain on your credit report for seven years and 180 days from the original date of delinquency, and bankruptcy stays on your report for 10 years from the date of filing. Chapter 13 is different and stays on there for seven years.

Credit repair companies will make sure that any of these types of debts are removed from your account when they age to this level. Sometimes they are not automatically removed, and you need to work with the credit bureaus to make sure that this happens.

When they say that the debt needs to be substantiated, they mean it has to be verified. All of your creditors need to be able to verify your debt. When you challenge an item on this basis, the credit bureaus will ask the creditor for proof that you owe the money.

When you decide to work with a credit repair company, make sure that they are familiar with all three of the requirements for any debt that is listed on your credit report.

  1. Credit Repair Companies Will Provide You with a Written Contract

A good credit repair company will give you a written contract that tells you what they will do and what it will cost. You will have the option to cancel within three days of signing the contract, and they will perform these services for you before they charge you.

The Credit Repair Organizations Act protects you and makes it illegal for these companies to mislead you, and you can file a complaint. They should be transparent about what they are going to do for you, and they should never make promises of raising your score by a certain number of points or removing items from your credit report that are legitimate debts.

Make sure that your credit repair company provides you with a written contract that explains what they will do for you and what your cost will be. This will ensure that you are dealing with a legitimate company that is going to help you remove inaccuracies from your credit report.

  1. Credit Repair Companies May Monitor Your Credit Profile for Ongoing Inaccuracies

Many credit repair companies offer monitoring of your credit profile going forward. You will be alerted if any changes to your credit profile occur. This can be beneficial because you will catch identity theft sooner, and you will be able to stay on top of your credit.

All credit repair services do not offer this service, but it can be a good idea if you are considering buying a house or a car. You need to make sure that your credit stays in good shape so that you don’t run the risk of being turned down for one of these vital loans.

Final Words

There are a number of ways that credit repair companies can help you repair your credit report. They can dispute any information that is inaccurate, and they can make the credit bureaus verify your debt. If you have been the victim of identity theft, they can help you start the process of disproving these fraudulent accounts and having them removed from your credit report.

If you need help repairing and restoring your credit, we provide these services and will work diligently to make sure that your credit report is accurate. Your credit can have a huge impact on your life, so you should make sure that your credit profile is accurate.

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