Why Is Credit Repair Important?
Real Credit Repair Results, W/no Monlthly ongoing fees
Credit repair is important if you have inaccurate items on your credit report. Surprisingly, many people have no idea that they have inaccurate items on their credit reports, which is why it is so important to check your report regularly. You are entitled to a free credit report every year. A negative item that shouldn’t be there can lower your score significantly and get in the way when you want to get a mortgage, an auto loan, or even a credit card. Read on to learn all about credit repair.
What Is Credit Repair?
A credit repair company can help you with credit repair. When you find inaccurate information on your credit report, a credit repair company can help you dispute it. Inaccurate information could be any of the following:
- Duplicate accounts
- Inaccurate accounts
- Accounts that don’t belong to you
- Incorrect inquiries
- Inaccurate address or name
Credit repair cannot help you remove valid debts or items on your credit report. If you have late payments, missed payments, or other valid debts on your credit report, they will have to stay there until it is time for them to fall off. They do have a time limit, so they will not be there forever.
How Long Do Legitimate Negative Items Stay on Your Credit Report?
Most legitimate negative items stay on your credit report for seven years. This includes the following:
- Late payments
- Short sales
- Charge offs
- Tax liens (from the date of the payment)
- Chapter 13 bankruptcy
In addition, collection accounts will remain on your credit report for seven years and 180 days, and bankruptcy other than Chapter 13 stays for 10 years from the date of filing. The good news is that their impact on your credit score lessens after two years, and you can build credit while they are there to improve your score.
What Does a Credit Repair Company Do?
If you find an invalid item on your credit report, you can hire a credit repair to help you dispute the inaccurate information. They will start by obtaining copies of your credit report from all three credit bureaus, Experian, Equifax, and Transunion. They will get all three because the creditors do not necessarily all report to the same bureaus. The information must be accurate on all three.
Once the credit repair company reviews your credit reports and checks for any inaccuracies, they will meet with you and ask you if you see anything that shouldn’t be there. They will tell you what documentation they need to successfully dispute the inaccurate items, and they will file disputes with the credit bureaus on your behalf.
A good credit repair company will let you know that you can file these disputes on your own. Many people choose to hire them to do it because they have years of experience dealing with the credit bureaus, and they know exactly what kind of evidence they will want to see. You may find it easier to use a credit repair company than to dispute it on your own.
Are All Credit Repair Companies Good?
As you will find with any industry, there are good credit repair companies and bad ones. It is important to be able to tell the difference between them. There are certain characteristics that good credit repair companies will share.
First of all, you should research the company. Make sure that they don’t have any customer complaints, and make sure that they are professional and have experience.
A good company will tell you that you can dispute these items on your own, and they will tell you what they can do for you. They should not charge you until they successfully dispute your items. They will give you a written contract that says exactly what they will do for you and how much you will be expected to pay.
It is important to know that a good credit repair company will never tell you that they can challenge legitimate items, and they will tell you that you have to rebuild your credit.
What Is in Your Credit Report?
Your credit report is a file that has information about your financial well-being. Creditors use it to determine whether they are willing to risk loaning to you. Your credit report is divided into several different sections. The first one has your personal information. It will have your name, other names you may have used, such as your maiden name, your address, your phone number, and your employment. All of this information should be accurate.
If you notice anything that is misspelled or is incorrect, you will want to dispute it. One way that inaccurate information ends up on your credit report is when it belongs to another person with a similar name.
The next section will show your legal financial information, such as liens, bankruptcies, judgments, or wage garnishments. These items hurt your score more in the first two years, and then their impact is reduced.
Another section will have all of your creditors. This will include credit cards, mortgages, student loans, and auto loans. You will see how much you owe, how much you have paid, and your payment history. This is where your late payments are located.
In addition, there is a section that has your credit inquiries for the past two years. Every time you apply for credit, it will appear in this section.
Your credit score will be determined from this information. They will use the following five categories to come up with your score:
- 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)
When you look at the breakdown, you can see that your payment history and your credit usage is 65% of your score. Be sure to make your payments on time and keep your credit utilization below 30% of your available credit.
How Can Credit Repair Help Your Credit Score?
Credit repair can help your credit score by successfully disputing items that should not be on your credit report. If you have a late payment that shouldn’t be on your report, your score may have been reduced by a significant amount. If someone else has a debt and it is on your credit report, that can also bring your score tumbling down.
It is important that before you worry about anything else, you make sure everything on your credit report is accurate and belongs to you. If inaccurate items are successfully disputed and removed from your credit report, your score will improve.
How to Improve Your Credit Score
If you have some legitimate negative items on your credit report, you can still work to improve your score. You can start by making your payments on time. Once you build up a six month history of on-time payments, the past late payments will not have as great of an impact. The longer you are able to go without any late payments, the more your score will improve.
In addition, you should try to pay down your balances if at all possible. The credit bureaus and creditors want to see you using less than 30% of your available credit. If you are not able to pay down your balances, you should consider opening another account. You should not open another account and use the credit. That would defeat the goal of lowering your credit utilization.
If you are not able to get a credit card, you can consider applying for a secured card. A secured credit card allows you to deposit an amount of money, which will serve as your credit limit. You will pay the credit card bill every month as you would an unsecured credit card. This gives people with less than perfect credit an opportunity to improve their credit score by showing their credit worthiness.
Another thing that you can do is go to Experian Boost and add your utilities and your cell phone to your credit report. The great thing about this is that they only count payments you make on time, and it can boost your score right away. This can be very helpful if you need to get your score up quickly to qualify for an auto loan or a mortgage.
The bottom line is that repairing your credit is very important if you have inaccurate items on your credit report. Creditors are required to report debts accurately in a timely fashion, and you have the right to challenge anything that is inaccurate. People are always amazed at the mistakes they find, so it is worth your time to check your credit report to make sure that everything is correct. If anything is wrong, you should either dispute the item with the credit bureaus or hire a credit repair company to do it for you. We do credit repair, and we can help if you need to dispute items on your report.
Ready to take your Credit to the
Ready to take your Credit to the